Bitcoin (BTC)

Bitcoin is a decentralized digital currency that operates on a public ledger known as a blockchain. It was invented in 2008 and introduced as open-source software in 2009. Bitcoin allows users to prove ownership of the currency and conduct transactions by updating the ledger. Unlike traditional currencies, such as the United States dollar, which is managed by central banks, Bitcoin operates without a central authority or banks.

Bitcoin is based on peer-to-peer technology, which means that transactions are conducted directly between users without the need for intermediaries. This decentralized nature provides several unique properties to Bitcoin. It enables fast and global payments with low processing fees compared to traditional payment systems. Additionally, Bitcoin offers possibilities beyond traditional systems, making it an attractive option for individuals and businesses.

The creation of new bitcoins and the verification of transactions are carried out through a process called mining. Miners compete to solve complex mathematical problems, and the successful miner is rewarded with newly minted bitcoins. This process ensures the security and integrity of the Bitcoin network.

Bitcoin operates on a fixed supply of 21 million coins, which means that there will only ever be a limited number of bitcoins in existence. Each bitcoin is divisible into 100 million units called satoshis, allowing for microtransactions and increased accessibility.

Bitcoin has experienced significant volatility in its price since its inception. However, it has emerged as one of the top-performing assets over the past decade. Its transparent nature, where transactions are recorded on the blockchain, gives users complete control over their funds and fosters trust within the network.