Bitcoin (abbreviation: BTC; sign: ₿) is the world's first and most well-known cryptocurrency. Here's a breakdown of what it is and how it works:
Decentralized Digital Currency:
Unlike traditional currencies controlled by governments and central banks, Bitcoin is decentralized. There's no single entity controlling its issuance or management.
Bitcoin exists on a digital ledger called a blockchain, a secure and transparent database shared across a network of computers. This network verifies and records all Bitcoin transactions.
Key Features:
Limited Supply: There will only ever be 21 million Bitcoins in existence, which helps control inflation.
Security: Cryptography secures Bitcoin transactions, making them tamper-proof and verifiable.
Pseudonymity: Bitcoin transactions are linked to digital addresses, not individual identities. However, these addresses can be traced back to users under certain circumstances.
How People Use Bitcoin:
Investment: Some people view Bitcoin as a long-term investment, hoping its value will appreciate over time.
Payments: While not yet widely adopted, some merchants accept Bitcoin for goods and services.
Transferring Money: Bitcoin can be a fast and relatively inexpensive way to transfer money internationally.
