Bitcoin is a decentralized digital currency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It was introduced in a 2008 whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System." The primary innovation of Bitcoin is its ability to facilitate peer-to-peer transactions without the need for intermediaries like banks or governments, relying instead on a technology called blockchain. A blockchain is a public ledger that records all transactions made with Bitcoin, ensuring transparency and security through cryptographic techniques.
Bitcoin operates on a decentralized network of computers called nodes, which validate and record transactions. This prevents double-spending and counterfeiting. Bitcoin's supply is limited to 21 million coins, creating a sense of scarcity that has contributed to its value. Bitcoin can be acquired through mining, a process where individuals use computing power to solve complex algorithms in return for newly minted Bitcoins and transaction fees.
Bitcoin has gained significant attention as both a currency and an investment asset. Its price can be highly volatile, influenced by market demand, regulatory news, and macroeconomic trends. Despite its volatility, Bitcoin has been hailed as "digital gold" because it serves as a store of value and hedge against traditional financial systems.