$BTC Bitcoin (BTC) is the world's first decentralized digital currency, introduced in 2009 by an anonymous person (or group) using the pseudonym **Satoshi Nakamoto**. It operates on a peer-to-peer network without the need for intermediaries like banks or governments**Key Features of Bitcoin:**
1. **Decentralization** – No single entity controls Bitcoin; it is maintained by a distributed network of nodes.
2. **Blockchain Technology** – Transactions are recorded on a public ledger (blockchain) secured by cryptography.
3. **Limited Supply** – Only **21 million BTC** will ever exist, making it a deflationary asset.
4. **Mining** – New bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to validate transactions.
5. **Pseudonymity** – Bitcoin addresses are not directly linked to identities, but transactions are transparent on the blockchain.
**Uses of Bitcoin:**
- **Digital Gold** – Many consider Bitcoin a store of value like gold.
- **Peer-to-Peer Payments** – Used for fast, borderless transactions.
- **Institutional Investment** – Companies like MicroStrategy and Tesla hold BTC as part of their treasury.
- **Hedge Against Inflation** – Due to its fixed supply, some see it as protection against fiat currency devaluation.
**Challenges:**
- **Volatility** – Bitcoin's price can fluctuate dramatically.
- **Scalability** – The Bitcoin network processes ~7 transactions per second (slower than Visa or PayPal).
- **Regulation** – Governments are still defining policies around Bitcoin (bans, taxes, etc.).
- **Energy Consumption** – Mining requires significant electricity, raising environmental concerns.
**Current Status (2024):**
- **Price**: ~$60,000–$70,000 (varies;
- **Adoption**: El Salvador recognizes it as legal tender; ETFs and institutional interest are growing.
- **Layer 2 Solutions**: Lightning Network improves transaction speed and cost.