Bitcoin is a decentralized digital currency that was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network, meaning transactions occur directly between users without the need for intermediaries, such as banks or governments. The technology that enables Bitcoin is called blockchain, a distributed ledger that records all transactions across a network of computers, making it secure and transparent.
Key features of Bitcoin include:
1. Decentralization: No central authority controls Bitcoin, unlike traditional currencies managed by central banks.
2. Limited Supply: Bitcoin has a finite supply of 21 million coins, making it deflationary over time.
3. Mining: Bitcoin transactions are validated by a process called mining, where miners use computational power to solve complex mathematical problems and are rewarded with new bitcoins.
4. Anonymity: While transactions are recorded on the blockchain, the identities of users are not directly tied to the wallet addresses used for transactions.
5. Volatility: Bitcoinâs value has experienced significant fluctuations since its inception, driven by factors like market sentiment, regulatory news, and adoption trends.
Bitcoin has gained widespread recognition as both an investment and a method of transferring value, though it remains a subject of debate regarding its long-term viability, regulation, and environmental impact due to the energy-intensive mining process.
