The history of Bitcoin.
Bitcoin (BTC) was introduced in 2008 in a white paper published under the pseudonym Satoshi Nakamoto. The first block, known as the 'genesis block,' was mined on January 3, 2009. Since then, Bitcoin has evolved from an experiment for enthusiasts to an asset in which large corporations and financial funds invest.
How does Bitcoin work?
Bitcoin operates on blockchain technology — a distributed ledger that records all transactions in the network. Transactions are verified and confirmed through a consensus mechanism called 'proof-of-work,' where miners use computational power to solve complex mathematical problems.
Advantages of Bitcoin.
Decentralization: Bitcoin is not controlled by any government or financial institution.
Limited issuance: Only 21 million Bitcoins will ever be issued, making it resistant to inflation.
Transparency: All transactions are available for viewing on the blockchain.
International transfers: Bitcoin allows for quick transfers of funds worldwide without intermediaries.
Disadvantages and risks.
Volatility: The price of Bitcoin can change dramatically, making it risky for investments.
Regulatory issues: In many countries, the status of Bitcoin is not fully defined.
Fraud and cyber threats: Due to Bitcoin's anonymity, it is often used in illegal operations.