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Bitcoin (BTC), often called the pioneer of cryptocurrencies, was created by Satoshi Nakamoto, an anonymous individual or group, in 2009. It operates using a decentralised ledger, called the blockchain, which records all transactions transparently and securely.
Unlike traditional fiat currencies, the Bitcoin network is decentralised, meaning that it is not controlled by any central authority, such as a government or bank. Instead, it relies on a distributed network of computers, known as nodes, to validate and record transactions.
Bitcoin offers several key features. It utilises blockchain technology, which facilitates peer-to-peer global transactions, eliminating the need for third-party intermediaries. Bitcoin's limited supply, which is capped at 21 million coins, makes it a unique store of value, often compared to precious metals. Its decentralised nature provides resistance to censorship and offers users increased financial autonomy. To learn more about Bitcoin, take a look at our "What is Bitcoin?" article.
Bitcoin's operation can be divided into two key components: blockchain technology and bitcoin transactions.
Bitcoin has also attracted investors interested in diversifying their portfolios and hedging against inflation. Bitcoin’s price history has seen significant fluctuations, including rapid gains and sharp corrections.
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Bitcoin’s value proposition lies in its scarcity and security, as well as its potential to serve as a store of value. While Bitcoin's future is uncertain, it has undeniably paved the way for the broader adoption of cryptocurrencies and blockchain technology across a variety of industries.