What is Bitcoin (BTC)?

Bitcoin (BTC) is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

History

Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.

Key Characteristics

1. Decentralization: No single entity controls the Bitcoin network.
2. Limited Supply: There will only ever be 21 million bitcoins.
3. Security: The Bitcoin network is secured by a massive amount of computing power (proof-of-work).

Bitcoin as a Store of Value

Often referred to as “digital gold,” Bitcoin is increasingly seen as a hedge against inflation and a store of value, similar to gold but with the added benefits of portability and divisibility.