Bitcoin is a decentralized digital currency that enables peer-to-peer transactions over the internet. It was created in 2009 by an anonymous entity known as Satoshi Nakamoto. Unlike traditional currencies issued by governments (fiat currencies), Bitcoin operates on a technology called blockchain, which is a distributed public ledger that records all transactions across a network of computers.
Bitcoin transactions are verified by network nodes through cryptography and recorded on the blockchain, ensuring transparency and security. It has a limited supply, capped at 21 million coins, which is designed to create scarcity and can impact its value. Users can store and manage their Bitcoin in digital wallets, and transactions can be conducted anonymously, providing a degree of privacy.
As the first cryptocurrency, Bitcoin has paved the way for the development of thousands of alternative cryptocurrencies and has influenced the broader adoption of blockchain technology across various sectors. It is often seen as a store of value or digital gold but is also subject to high volatility in its market price.
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