What Is Bitcoin?

Bitcoin is a digital currency that was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Bitcoin transactions are made without a middleman – meaning, no banks, credit card companies or other financial institutions are involved in the process. This is one of the reasons why Bitcoin is often referred to as a decentralized currency.

How Bitcoin Operates

Bitcoin operates on a technology called blockchain. The blockchain is essentially a public ledger that records all Bitcoin transactions. Every time a transaction is made, it is recorded on the blockchain and cannot be altered or deleted. This makes Bitcoin transactions transparent and virtually tamper-proof.
One of the key features of Bitcoin is that it has a limited supply. Only 21 million Bitcoins will ever exist, and the supply is slowly being released over time through a process called mining. Mining involves solving complex mathematical problems to validate transactions and create new Bitcoins.
Bitcoin is also known for its high volatility – meaning, the price of Bitcoin can fluctuate wildly in short periods of time. Some people view Bitcoin as a speculative investment, while others use it as a means of exchange for goods and services.

Bitcoin can be stored in digital wallets, which can be accessed from a computer or mobile device. Transactions can be made by sending Bitcoins from one wallet to another, and the transaction is verified by the network of Bitcoin users around the world.

In conclusion, Bitcoin is a digital currency that operates on a decentralized network called the blockchain. It has a limited supply and can be used for transactions without the need for a middleman. While Bitcoin is still a relatively new and volatile asset, it has gained widespread attention and adoption in recent years.