What is Bitcoin ?

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26 Dec 2023
20

Bitcoin (BTC) is a decentralized 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. Bitcoin operates on a peer-to-peer network, and its transactions are recorded on a public ledger called the blockchain.
Here are some key features of real Bitcoin:

  1. Decentralization: Bitcoin operates on a decentralized network of computers, known as nodes, which work together to validate and record transactions. This decentralization makes it resistant to censorship and interference from central authorities.
  2. Blockchain Technology: All Bitcoin transactions are recorded on a public ledger called the blockchain. The blockchain is a chain of blocks, each containing a list of transactions. This technology ensures transparency and immutability of transaction history.
  3. Limited Supply: Bitcoin has a capped supply of 21 million coins. This scarcity is built into the system by the design of its code. This limited supply is intended to prevent inflation and mimic the scarcity of precious metals like gold.
  4. Mining: New bitcoins are created through a process called mining, where powerful computers solve complex mathematical puzzles. This process secures the network and validates transactions. Miners are rewarded with newly created bitcoins for their efforts.
  5. Wallets: Users store their bitcoins in digital wallets, which can be software-based (online, desktop, or mobile) or hardware-based (physical devices designed for secure bitcoin storage).
  6. Irreversibility: Once a transaction is added to the blockchain, it is generally irreversible. This feature makes Bitcoin transactions resistant to fraud and chargebacks.

It's important to note that there are various other digital currencies and tokens in the cryptocurrency space. When referring to "real Bitcoin," it usually means the original Bitcoin (BTC) that operates on the principles outlined by Satoshi Nakamoto in the Bitcoin whitepaper.
Be cautious of potential scams, forks, or alternative projects that might claim to be "the real Bitcoin." The official Bitcoin network is the one that follows the original Bitcoin protocol and is supported by the majority of the network's participants.

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