Bitcoin, the world’s first cryptocurrency, has transformed the financial landscape since its inception in 2009. Created by an anonymous individual or group using the pseudonym Satoshi Nakamoto, Bitcoin introduced a decentralized digital currency that operates without a central bank or single administrator. Its impact on finance, technology, and society continues to grow as more people and institutions recognize its potential. Check out: Bitcoin price today
What is Bitcoin?
Bitcoin is a digital currency that allows peer-to-peer transactions over the Bitcoin network. It operates on blockchain technology, a decentralized ledger that records all transactions across a network of computers. This transparency and security are fundamental to Bitcoin's appeal, as it ensures transactions cannot be altered or censored.
How Bitcoin Works
Bitcoin transactions are verified by network nodes through cryptography and recorded in a public ledger called a blockchain. Miners, individuals or entities that use computing power to process transactions, compete to solve complex mathematical problems. The first to solve these problems adds a block of transactions to the blockchain and is rewarded with newly created bitcoins, a process known as mining.
The Fixed Supply of Bitcoin
Bitcoin’s supply is capped at 21 million coins, a design feature intended to simulate the scarcity of precious metals and combat inflation. This fixed supply means that no more than 21 million bitcoins will ever be created, making it a deflationary currency. As of now, approximately 19 million bitcoins have been mined, with the remaining supply expected to be mined by 2140.
Bitcoin’s Volatility and Market Dynamics
Bitcoin is known for its price volatility, influenced by factors such as market demand, investor sentiment, regulatory news, and macroeconomic trends. This volatility can lead to significant price swings, attracting both investors seeking high returns and critics wary of its stability.
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