What is Bitcoin?

Bitcoin is the world's first decentralized cryptocurrency, created in 2008 by an unknown entity under the pseudonym Satoshi Nakamoto. It allows for secure, peer-to-peer transactions without the need for intermediaries like banks or governments12. Bitcoin operates on a decentralized network, using a public ledger called a blockchain to record all transactions23.

Key Features of Bitcoin

• Decentralized Network: Bitcoin transactions are verified by a network of computers (nodes) rather than a central authority12.
• Blockchain Technology: Transactions are recorded on a blockchain, which is a distributed ledger that ensures transparency and security23.
• Limited Supply: The total supply of Bitcoin is capped at 21 million, which helps maintain its value through scarcity24.
• Mining Process: New Bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to validate transactions and secure the network12.
• Divisibility: Bitcoin is divisible to eight decimal places, with the smallest unit being a Satoshi (1/100,000,000 of a Bitcoin)13.

Uses of Bitcoin

Bitcoin serves multiple purposes:

• Medium of Exchange: It can be used for everyday transactions.
• Store of Value: Many view Bitcoin as a digital gold, holding it as an investment.
• Investment Vehicle: Its volatility makes it attractive to speculators23.

Current Status

As of March 2025, Bitcoin continues to be a major player in the cryptocurrency market, with a significant market cap and trading volume34. Its price fluctuates based on market demand and supply dynamics3.