What is Bitcoin?
A comprehensive guide to understanding Bitcoin
Introduction to Bitcoin
Bitcoin is the world's first cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It's a decentralized digital currency that allows peer-to-peer transactions without the need for intermediaries like banks.
How Bitcoin Works
Bitcoin operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers. Each transaction is verified by network participants called miners through a process called proof of work.
Key Features
Bitcoin offers several unique features: decentralization (no central authority), limited supply (21 million coins maximum), transparency (all transactions are public), and security (cryptographic protection).
Uses and Applications
Bitcoin can be used as a store of value, medium of exchange, and hedge against inflation. It's increasingly accepted by businesses and institutions as a legitimate form of payment and investment.