$BTC

**Bitcoin (BTC)** is the first and most well-known **cryptocurrency**, created in 2009 by an anonymous person (or group) using the pseudonym **Satoshi Nakamoto**. It operates on a **decentralized peer-to-peer network** powered by blockchain technology, eliminating the need for intermediaries like banks.

### **Key Features of Bitcoin (BTC):**

1. **Decentralization** – No central authority controls Bitcoin; transactions are verified by a distributed network of nodes.

2. **Limited Supply** – Only **21 million BTC** will ever exist, making it a deflationary asset (similar to digital gold).

3. **Blockchain Technology** – Transactions are recorded on a public, immutable ledger secured by cryptographic hashing.

4. **Proof-of-Work (PoW) Consensus** – Miners compete to solve complex mathematical problems to validate transactions and earn new BTC as rewards.

5. **Pseudonymity** – Users transact via wallet addresses (not directly tied to real-world identities unless disclosed).

6. **Global & Borderless** – BTC can be sent anywhere in the world with minimal fees compared to traditional banking.

### **Use Cases:**

- **Digital Gold** – Store of value (often called "gold 2.0").

- **Peer-to-Peer Payments** – Fast, low-cost transactions (especially with the Lightning Network).

- **Hedge Against Inflation** – Limited supply makes it attractive during economic uncertainty.

- **Investment & Speculation** – Traded on exchanges like Binance, Coinbase, and Kraken.

### **Challenges:**

- **Volatility** – BTC's price can swing dramatically in short periods.

- **Scalability Issues** – The base layer processes ~7 transactions per second (solutions like Lightning Network help).

- **Regulatory Uncertainty** – Governments have varying stances on crypto regulation.

- **Energy Consumption** – Mining requires significant electricity (though renewable energy use is growing).

Bitcoin remains the dominant cryptocurrency by **market cap** and adoption, influencing the entire crypto ecosystem. Many see it as a revolutionary form of money, while others debate itsn?