Demystifying Bitcoin: Understanding the Digital Currency Revolution
Bitcoin is a digital currency, often referred to as a cryptocurrency, that was introduced in 2009. It operates on a decentralized network using blockchain technology, a public ledger that records all transactions. Bitcoin transactions are secure, transparent, and verified by network nodes through cryptography. Unlike traditional currencies, Bitcoin is not controlled by any central authority, such as a government or bank. It can be used for online transactions, investments, and as a store of value. Bitcoin mining, a process where powerful computers validate transactions and add them to the blockchain, ensures the network's security and the creation of new Bitcoins. Its limited supply (capped at 21 million) creates scarcity, contributing to its value. Bitcoin's value can be highly volatile, and it has gained popularity as a speculative investment and a hedge against economic uncertainties.
