Bitcoin (BTC) is the world’s first and most well-known cryptocurrency, revolutionizing the financial industry with its decentralized nature. Launched in 2009 by an anonymous entity known as Satoshi Nakamoto, Bitcoin operates without the control of banks or governments.
How Bitcoin Works
Bitcoin runs on a blockchain, a distributed ledger that records transactions securely. Transactions are verified through a consensus mechanism called Proof of Work (PoW), where miners solve complex algorithms to validate transactions and add new blocks to the chain.
Key Features of Bitcoin
- Decentralization – No central authority controls Bitcoin.
- Limited Supply – Only 21 million BTC will ever exist.
- Security – Uses cryptographic encryption for secure transactions.
- Transparency – Transactions are recorded on a public blockchain.
Why is Bitcoin Valuable?
Bitcoin is often referred to as “digital gold” due to its scarcity and store of value properties. Its value is driven by supply and demand, adoption rates, and market sentiment.
How to Buy and Store Bitcoin
- Choose a reliable crypto exchange (e.g., Binance, Coinbase, Kraken).
- Purchase Bitcoin using fiat currency or other cryptocurrencies.
- Store BTC in a secure wallet (hardware or software).
- Enable two-factor authentication (2FA) for security.
