What is Bitcoin?

Bitcoin (BTC) is the world’s first decentralized cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network without the need for intermediaries like banks or governments.

Bitcoin introduced the concept of blockchain technology and has become the most valuable cryptocurrency by market capitalization, often referred to as “digital gold.”

How Bitcoin Works

Bitcoin operates on a decentralized network of computers (nodes) that maintain a shared ledger called the blockchain:

  1. Transactions are broadcast to the network
  2. Miners validate transactions and add them to blocks
  3. Blocks are added to the blockchain approximately every 10 minutes
  4. Rewards are given to miners who successfully add blocks

Key Features

  • Decentralized: No single entity controls Bitcoin
  • Limited supply: Maximum 21 million BTC will ever exist
  • Transparent: All transactions are publicly visible
  • Pseudonymous: Addresses don’t reveal identity
  • Immutable: Transactions cannot be reversed

Why Bitcoin Matters

Bitcoin represents:

  • The first successful implementation of digital scarcity
  • A hedge against traditional financial system risks
  • A store of value similar to gold
  • The foundation of the entire cryptocurrency industry

Trading Bitcoin

Bitcoin is available on virtually all cryptocurrency exchanges including Binance, Coinbase, and Kraken. It’s typically the most liquid cryptocurrency with the tightest spreads.