Bitcoin Basics: Understanding Cryptocurrency and Blockchain Technology

Bitcoin is a digital form of money that operates without a central authority or banks. It relies on blockchain technology, a decentralized ledger managed by a network of computers, known as nodes. Each transaction made with Bitcoin is verified by network nodes through cryptography and recorded on the blockchain. The system was created in 2009 by an anonymous person or group of people using the name Satoshi Nakamoto. Bitcoin's main innovation is its ability to allow transactions to be made without intermediaries, providing a new way to think about money and finance. The supply of Bitcoin is limited to 21 million coins, a feature designed to prevent inflation and ensure scarcity. Over time, the value of Bitcoin has fluctuated significantly, reflecting its adoption and the speculative nature of cryptocurrency markets. Bitcoin can be used for various purposes, including online purchases and investments, but its volatility and regulatory status vary by region. As more people and institutions adopt Bitcoin, its role in the global financial system continues to evolve.