Bitcoin was designed to solve one major problem: trust. Traditional financial systems rely on banks and intermediaries, but Bitcoin operates on a decentralized blockchain. This means no single authority controls it, and transactions are verified by a global network of miners.
Key features of Bitcoin include:
Limited supply: Only 21 million BTC will ever exist
Decentralization: No government or company controls it
Transparency: All transactions are publicly recorded on the blockchain
Security: Protected by cryptography and network consensus
Because of these features, Bitcoin is often called “digital gold.”
Bitcoin as a Store of Value
Many investors see Bitcoin as a hedge against inflation. Unlike fiat currencies, which can be printed endlessly, Bitcoin’s fixed supply creates scarcity. This scarcity is one reason long-term holders believe BTC will continue to increase in value over time.
Events like the Bitcoin halving, which occurs roughly every four years and reduces mining rewards, further limit new supply. Historically, halvings have played an important role in Bitcoin’s market cycles.
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