Bitcoin is a digital currency, often referred to as 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, which is essentially a public ledger containing all transactions ever made with Bitcoin. Unlike traditional currencies, Bitcoin is not controlled by any government or financial institution; instead, it relies on a peer-to-peer network of computers to validate transactions and manage the issuance of new bitcoins.
Bitcoins can be exchanged for goods and services or other currencies, and they can also be stored as an investment. The supply of bitcoins is limited to 21 million coins, making it a deflationary asset. Bitcoin transactions are processed by miners, who use powerful computers to solve complex mathematical puzzles that validate and secure transactions on the network. This process also creates new bitcoins and rewards miners with transaction fees.
Bitcoin has gained significant attention and adoption over the years, with some seeing it as a store of value similar to gold, while others view it as a speculative asset or a hedge against traditional financial systems. Its price has been highly volatile, experiencing significant fluctuations over short periods of time.