What is Bitcoin (BTC)?
Bitcoin (BTC)
Bitcoin is a decentralized digital currency that employs cryptography for secure transactions, eliminating the need for a central authority. It was conceived in 2008 by an anonymous individual or group of individuals under the pseudonym Satoshi Nakamoto. The importance of Bitcoin lies in its decentralized nature, offering peer-to-peer transactions without the interference of financial institutions, and its limited supply of 21 million coins, making it a deflationary asset.
Unique aspects:
Bitcoin’s most noteworthy feature is its first-mover advantage, having established itself as the premier digital currency in the market. Additionally, its widespread acceptance, extensive mining network, and limited supply contribute to its distinctiveness among other cryptocurrencies.
Glossary of Terms:
Decentralization: The process of distributing power and authority away from a central point, often associated with blockchain technology and cryptocurrencies.
Cryptography: The practice of securing communication and data through mathematical algorithms, used to ensure the security, integrity, and authenticity of digital currency transactions.
Blockchain: A distributed, public ledger that records transactions in a secure, tamper-proof, and transparent manner, forming the underlying technology of cryptocurrencies like Bitcoin.
Deflationary asset: An asset with a fixed or decreasing supply, often resulting in an increase in value over time due to scarcity.
Peer-to-peer: A network structure that allows participants to interact directly with each other without the need for a central authority or intermediary.
