What is Bitcoin?

Bitcoin is a decentralized digital currency that was created in 2009 by an anonymous person or group known as Satoshi Nakamoto. Unlike traditional currencies issued by governments or central banks, Bitcoin operates on a peer-to-peer network and relies on blockchain technology to maintain a secure and transparent ledger of transactions. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

One of Bitcoin's key features is its limited supply; there will only ever be 21 million Bitcoins in existence. This scarcity is designed to prevent inflation and ensure long-term value retention. Bitcoin transactions are typically irreversible, and its decentralized nature means it is not controlled by any single entity or government.

Bitcoin can be used for a variety of purposes, including online purchases, investments, and as a store of value. It has gained significant attention and popularity due to its potential for high returns and its role in the emerging field of digital assets and decentralized finance (DeFi). However, Bitcoin is also known for its volatility, with its value experiencing significant fluctuations over short periods.

Bitcoin mining is the process by which new Bitcoins are created and transactions are verified. Miners use specialized computer hardware to solve complex mathematical problems, and in return, they are rewarded with newly minted Bitcoins and transaction fees. This process requires substantial computational power and energy consumption, leading to discussions about its environmental impact.

Overall, Bitcoin represents a revolutionary shift in the world of finance, offering an alternative to traditional monetary systems and providing new opportunities for investment and financial innovation.