What is a Bitcoin?
Bitcoin is a decentralized digital currency that enables peer-to-peer transactions over the internet without the need for a central authority, like a bank or government. It was created in 2009 by an anonymous person or group known as Satoshi Nakamoto. Bitcoin operates on a technology called blockchain, which is a distributed public ledger that records all transactions across a network of computers.
Key features of Bitcoin include:
Decentralization: Bitcoin is not controlled by any single entity; instead, it is maintained by a network of nodes that validate and record transactions.
Limited Supply: There is a finite supply of Bitcoin, capped at 21 million coins, which helps create scarcity and may influence its value over time.
Mining: New bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to validate transactions and add them to the blockchain.
Anonymity and Pseudonymity: While Bitcoin transactions are recorded on a public ledger, the identities of the users are represented by alphanumeric addresses, offering a degree of anonymity.
Usability: Bitcoin can be used for various purposes, including online purchases, investment, remittances, and as a store of value.
Overall, Bitcoin has become a significant and influential part of the financial landscape, often referred to as digital gold due to its perceived value and potential as an alternative asset.
