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What is Bitcoin?

Understanding the world's first cryptocurrency

The Basics of Bitcoin

Bitcoin is a decentralized digital currency created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Unlike traditional currencies issued by governments (fiat money), Bitcoin operates without a central authority or banks.

Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique because there will only ever be 21 million bitcoins created.

As the first cryptocurrency, Bitcoin pioneered blockchain technology and has become the most valuable and widely adopted digital currency in the world.

Key Bitcoin Facts

  • Limited supply of 21 million coins
  • Secured by cryptography and blockchain technology
  • Borderless transactions without intermediaries
  • New coins are created through mining (Proof of Work)

How Bitcoin Works

Understanding the technology behind the world's most popular cryptocurrency

The Bitcoin Blockchain

The blockchain is a public ledger that records all Bitcoin transactions. It's made up of blocks, with each block containing a group of transactions.

Each new block contains a reference (hash) to the previous block, creating a chain of blocks. This structure makes the ledger tamper-proof, as changing any information in a previous block would require changing all subsequent blocks.

Every participant in the Bitcoin network has access to the entire blockchain, making it a transparent and decentralized system.

Why Use Bitcoin?

The advantages of using Bitcoin as a digital currency

Global Accessibility

Bitcoin can be sent anywhere in the world, to anyone with an internet connection, regardless of location or banking access.

Security

Bitcoin's cryptographic foundation makes it extremely secure, with users maintaining control over their funds without relying on third parties.

Financial Freedom

Bitcoin gives individuals control over their money without bank approval, government restrictions, or high transaction fees.

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