#Liquidity101 Bitcoin, launched in 2009, is the world's first decentralized digital currency. It operates on a technology called blockchain, a public, immutable ledger recording all transactions. Unlike traditional currencies, Bitcoin has no central authority or government backing, relying instead on a peer-to-peer network for verification through "mining." This process, though energy-intensive, secures the network and creates new bitcoins.

Bitcoin's value is highly volatile, driven by supply and demand, adoption rates, and macroeconomic factors. While often viewed as "digital gold" and an investment asset, its potential as a global payment system is still evolving. Its finite supply of 21 million coins contributes to its scarcity.