What is Bitcoin?
Bitcoin is a digital currency built from computer code. Unlike traditional currencies like the US dollar or euro, it isn’t controlled by a central bank or backed by any government.
Instead, BTC is managed by its community of users, who oversee and regulate it.
Supporters argue this makes it a more efficient alternative to conventional money, free from government actions like devaluing currency to support trade.
Like other currencies, BTC can be used to pay for goods, services, or swapped for other currencies, as long as the other party accepts it.
Where does it come from?
Bitcoin was introduced in 2009 through encrypted software developed by an individual or group using the pseudonym Satoshi Nakamoto.
Last year, Australian businessman Craig Wright claimed to be Bitcoin’s creator, though some remain skeptical of his assertion.
Since Bitcoin’s debut, numerous other cryptocurrencies have emerged, but it remains the most widely recognised, with growing acceptance among merchants for payments.
Transactions occur when encrypted codes are shared across a computer network, which collectively tracks and validates them to prevent any BTC from being spent more than once.
Users can “mine” new Bitcoins by running their computers through complex, increasingly challenging processes. However, the system caps the total supply at 21 million Bitcoins, limiting how many will ever exist.