#Liquidity101 Bitcoin is a decentralized digital currency that operates on a peer-to-peer network without the need for intermediaries like banks. It was created in 2009 by an anonymous entity known as Satoshi Nakamoto. Bitcoin transactions are recorded on a public ledger called the blockchain, ensuring transparency and security. The currency is generated through a process called mining, where powerful computers solve complex mathematical problems. Bitcoin's limited supply—only 21 million coins—makes it a deflationary asset, appealing to investors seeking an alternative store of value. Its price can be highly volatile, making it both an investment opportunity and a risk.