#RiskRewardRatio **Bitcoin - Simplified Explanation**
Bitcoin is the first decentralized digital currency in the world, introduced in 2009 by an unknown person using the name "Satoshi Nakamoto". It differs from traditional currencies in that it is not subject to any central bank or government.
Bitcoin operates through a revolutionary technology called "Blockchain", which is a public digital ledger that records all transactions securely and transparently. Transactions are confirmed through a process called "mining", where individuals use powerful computers to solve complex mathematical equations.
Some of the main features of Bitcoin:
- Decentralization: Not controlled by any institution
- Limited supply: Only 21 million units
- Low fees for transfers
- Speed in cross-border transactions
However, it has some drawbacks:
- Sharp price volatility
- High energy consumption in mining
- Potential use in illegal activities
Bitcoin is stored in digital electronic wallets and can be traded on specialized exchanges. Some consider it "digital gold" due to its scarcity, while others criticize it for its significant volatility. Nevertheless, Bitcoin remains the most famous and valuable cryptocurrency in the digital market.
