$BTC Bitcoin (BTC) is the first and most widely recognized cryptocurrency, created in 2009 by an anonymous entity known as Satoshi Nakamoto. It is a decentralized digital currency that operates without a central authority, using blockchain technology to ensure transparency, security, and immutability. Here's a breakdown of Bitcoin's key features:
1. How Bitcoin Works
Blockchain Technology: Bitcoin transactions are recorded on a public ledger called the blockchain. Each block contains a list of transactions and is secured through cryptography.
Decentralization: No single entity controls Bitcoin. It operates on a peer-to-peer network of computers (nodes).
Proof of Work (PoW): Bitcoin uses PoW as a consensus mechanism, requiring miners to solve complex mathematical problems to validate transactions and add them to the blockchain.
2. Key Features
Limited Supply: Only 21 million Bitcoins will ever be mined, making it deflationary by design.
Digital and Borderless: Bitcoin can be transferred globally without intermediaries or government restrictions.
Secure: Transactions are secured by cryptography, making it resistant to fraud and tampering.
Pseudonymous: Bitcoin addresses do not directly reveal the identities of their owners.
3. Use Cases
Store of Value: Often referred to as "digital gold," Bitcoin is seen as a hedge against inflation and a store of value.
Medium of Exchange: Used for buying