Bitcoin $BTC is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. It is a decentralized digital currency that operates on a peer-to-peer network, allowing users to send and receive payments without relying on banks or governments.
How Bitcoin Works
Bitcoin transactions are recorded on a public ledger called the blockchain, maintained by a decentralized network of nodes. Transactions are verified by miners, who use computational power to solve complex mathematical puzzles (Proof of Work) and are rewarded with newly minted bitcoins and transaction fees.
Key Features of Bitcoin
Decentralization: No single entity controls Bitcoin.
Fixed Supply: Only 21 million BTC will ever exist, making it deflationary.
Transparency: All transactions are publicly recorded on the blockchain.
Security: Uses cryptographic techniques to ensure secure transactions.
Bitcoin’s Use Cases
Store of Value: Often referred to as "digital gold" due to its scarcity.
Medium of Exchange: Used for payments, though volatility affects adoption.
Hedge Against Inflation: Some investors see BTC as protection against fiat currency devaluation.
