What is Bitcoin?

Bitcoin is a type of digital currency that operates on a decentralized network, meaning it is not controlled by any central authority like a government or financial institution. It was introduced in 2009 by an anonymous person or group known as Satoshi Nakamoto. Bitcoin allows for peer-to-peer transactions over the internet without the need for intermediaries. This system relies on blockchain technology to maintain a public ledger of all transactions, ensuring transparency and security. Bitcoin's value is determined by supply and demand dynamics and is known for its volatility. It can be used for various purposes, including online purchases, investments, and as a store of value. Despite its potential advantages, Bitcoin faces challenges such as regulatory scrutiny, environmental concerns related to mining, and scalability issues. Its impact on the financial system continues to evolve as more people and institutions adopt this innovative form of currency.