Understanding Bitcoin: The Decentralized Cryptocurrency
What is Bitcoin?
Bitcoin (BTC), often referred to as "cryptocurrency" or "virtual currency," is a decentralized digital currency intended to serve as a medium of exchange and store of value outside the control of any central authority.
Decentralization and Security
Unlike traditional fiat currencies issued by central banks, Bitcoin operates on a decentralized network where transactions are verified by computers called "nodes." This distributed network eliminates the need for intermediaries, ensuring security and transparency.
Creation and Introduction
Bitcoin was introduced in 2008 by an anonymous creator or group known as Satoshi Nakamoto. Since then, it has gained widespread adoption and value due to its decentralized nature and limited supply.
Use and Exchange
Bitcoin can be used for online and offline transactions, purchased and sold through cryptocurrency exchanges, and stored in digital wallets. It offers both investment opportunities and practical applications as a payment method.
Key Features
- Decentralized architecture
- Cryptographic transaction verification
- Pseudonymous ownership
- Limited supply of 21 million bitcoins
- Global reach and acceptance
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