Bitcoin (BTC) is a decentralized digital currency created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It operates on blockchain technology, a distributed ledger that records all transactions across a network of computers. Here are some key points about Bitcoin:
1. Decentralization
Unlike traditional currencies, Bitcoin is not controlled by any government or central authority.
It operates on a peer-to-peer network.
2. Limited Supply
Bitcoin has a fixed supply of 21 million coins. This scarcity contributes to its value.
3. Blockchain Technology
Transactions are verified by network nodes through cryptography and recorded on the blockchain.
This system ensures security and prevents double-spending.
4. Use Cases
Store of Value: Often referred to as "digital gold."
Payments: Used for online transactions without intermediaries.
Investments: Many people hold Bitcoin as a long-term investment.
5. Volatility
Bitcoin prices are highly volatile and can fluctuate significantly in a short period.
Factors like market demand, regulations, and investor sentiment influence its price.
6. Mining
New Bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems.
If you're considering investing in BTC, remember it’s a high-risk asset. Always research thoroughly and invest only what you can afford to lose.
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