What is Bitcoin?
Bitcoin is a decentralized digital currency that operates without a central authority or banks. It enables peer-to-peer transactions on the Bitcoin network, with all transactions being verified by network nodes through cryptography.
Key Characteristics
Limited Supply
Only 21 million bitcoins will ever exist, making it a deflationary asset.
Decentralization
No government, institution, or entity controls Bitcoin.
Security
Protected by cryptography and a vast network of computers.
Common Uses
- Store of value ("digital gold")
- Medium of exchange
- International remittances
- Trading and investment
Technical Details
- Created by pseudonymous developer(s) Satoshi Nakamoto
- Uses Proof of Work consensus mechanism
- New bitcoins are created through mining
- Halving events occur approximately every four years
Related Terms
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