what is bitcoin

Bitcoin is a digital or virtual cryptocurrency 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 essentially a distributed ledger that records all transactions across a network of computers. Bitcoin is often referred to as a decentralized currency because it is not controlled by any single entity like a government or central bank. Instead, transactions are verified by network nodes through cryptography and recorded on the blockchain. This process ensures the security and integrity of the system without the need for a central authority. One of the key features of Bitcoin is its finite supply. There will only ever be 21 million bitcoins in existence, which makes it a deflationary asset. Bitcoin can be obtained through various means, including mining (the process of solving complex mathematical problems to validate transactions and add them to the blockchain), purchasing on cryptocurrency exchanges, or as payment for goods and services. Bitcoin has gained significant attention and adoption since its inception, with many viewing it as a store of value or a hedge against traditional fiat currencies. However, it's also known for its price volatility, which can fluctuate dramatically over short periods.