#bitcoin is a #decentralized digital currency that enables peer-to-peer transactions without intermediaries like banks. It was created in 2009 by an individual or group using the pseudonym Satoshi Nakamoto. Bitcoin operates on a blockchain, a public ledger that records all transactions, ensuring transparency and security. Here's how it works ¹ ²:
- *Key Features:*
- *Decentralized*: Bitcoin isn't controlled by any government or institution.
- *Limited Supply*: Only 21 million bitcoins will exist.
- *Digital*: Bitcoin exists only in electronic form.
- *How it Works:*
- *Mining*: New bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems.
- *Transactions*: Bitcoin transactions are recorded on a public ledger called a blockchain.
- *Security*: Transactions are secured through cryptography and verified by nodes on the network.
- *Uses:*
- *Investment*: Bitcoin is seen as a store of value and investment opportunity.
- *Payments*: Bitcoin can be used for online transactions.
- *Speculation*: Bitcoin's price volatility makes it a popular speculative asset.
The current price of Bitcoin is around $118,643.81, with a market capitalization of approximately $2.36 trillion. Its price has been volatile, with a 24-hour trading volume of $63.55 billion ¹.