What is Bitcoin?
Bitcoin is a digital currency, often referred to as a cryptocurrency, that was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. It operates on a decentralized network called blockchain technology, which is a distributed ledger that records all transactions across a network of computers.
How does Bitcoin work?
Bitcoin transactions are verified by network nodes through cryptography and recorded in a public ledger called a blockchain. This ledger is maintained by a network of nodes (computers) that validate and record transactions, ensuring transparency and security.
One of the key features of Bitcoin is its decentralization, meaning it is not controlled by any single entity like a government or financial institution. Instead, it operates on a peer-to-peer network, allowing users to send and receive payments without the need for intermediaries.
What is the purpose of Bitcoin?
Bitcoin can be used for various purposes, including online purchases, investment, and as a store of value. Its value is determined by supply and demand dynamics in the market, and its price can be highly volatile.
Overall, Bitcoin represents a new form of digital currency that has gained significant attention and adoption since its inception, sparking discussions about the future of money and finance.