$BTC
Bitcoin is a decentralized digital currency, created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers. Bitcoin is often referred to as a cryptocurrency because it relies on cryptographic techniques to secure transactions, control the creation of new units, and verify the transfer of assets.
Key points about Bitcoin:
Decentralization: Bitcoin operates without a central authority, like a government or financial institution. This decentralization is achieved through the blockchain technology.
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.
Mining: Bitcoin is created through a process called mining, where powerful computers solve complex mathematical problems to validate and add transactions to the blockchain. Miners are rewarded with new bitcoins for their efforts.
Volatility: Bitcoin's value can be highly volatile, influenced by factors such as market demand, regulatory developments, macroeconomic trends, and investor sentiment.
Store of Value: Some view Bitcoin as a store of value similar to gold, considering its limited supply and the belief that it can retain value over time.
