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Bitcoin is a decentralized digital currency, created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network without the need for a central authority, such as a government or financial institution. Transactions are verified by network nodes through cryptography and recorded on a public ledger called the blockchain.

Bitcoin is often referred to as a "cryptocurrency" because it relies on cryptographic techniques for securing transactions and controlling the creation of new units. It has a fixed supply cap of 21 million coins, which is one of the key features that makes it scarce and potentially valuable.

Bitcoin can be used for a variety of purposes, including online purchases, investments, and as a store of value. However, its volatility, regulatory concerns, and scalability issues have been points of debate. Despite this, Bitcoin has gained widespread adoption and recognition as both a form of digital money and a potential hedge against inflation.