Bitcoin (BTC) Overview — Educational Information
What is Bitcoin (BTC)?
Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, allowing users to send and receive digital money without needing a central authority like a bank.
Key Features:
Limited Supply: Only 21 million BTC will ever exist. This scarcity adds to its value over time.
Decentralized: Bitcoin is not controlled by any government or institution.
Secure and Transparent: All transactions are recorded on a public ledger called the blockchain.
Volatile: The price of BTC can rise or fall sharply within short periods.
Use Cases:
Store of value (often referred to as “digital gold”)
Peer-to-peer payments
Hedge against inflation in some countries
Accepted by various merchants and online platforms
Risks and Considerations:
Price volatility
Regulatory risks depending on the country
Not backed by any physical asset or government
How it Works:
Bitcoin uses a technology called blockchain, where transactions are grouped into "blocks" and secured using cryptography. Miners validate these transactions and are rewarded with newly minted BTC.
