Bitcoin is a decentralized digital currency, often referred to as a cryptocurrency. It was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin operates on a technology called blockchain, which is a distributed ledger enforced by a network of computers, known as nodes.
Key features of Bitcoin include:
1. **Decentralization**: Bitcoin operates on a peer-to-peer network without a central authority, such as a government or financial institution.
2. **Limited Supply**: There is a capped supply of 21 million bitcoins, making it a deflationary currency. This scarcity is designed to mimic the scarcity of precious metals like gold.
3. **Mining**: Bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to validate and add transactions to the blockchain.
4. **Security**: The use of cryptographic techniques ensures the security of transactions and the creation of new bitcoins.
5. **Anonymity**: While transactions are recorded on the blockchain, the identities of the individuals involved are pseudonymous. However, it's important to note that Bitcoin transactions are not entirely anonymous, and there are efforts to improve privacy features.
6. **Divisibility**: Bitcoin is divisible into smaller units, with the smallest unit being a satoshi (named after the pseudonymous creator).
Bitcoin can be used for various transactions, including online purchases, investment, and remittances. Its value can be volatile, influenced by factors such as market demand, regulatory developments, macroeconomic trends, and public perception.
Keep in mind that the cryptocurrency space is dynamic, and developments may have occurred since my last update.
