What Is Bitcoin?
Bitcoin (BTC) is the first and most widely recognized cryptocurrency, introduced in 2009 by an anonymous creator known as Satoshi Nakamoto. It is a form of digital money designed to operate on a peer-to-peer network without the need for a central authority such as a bank or government. Transactions are recorded on the Bitcoin blockchain, a public, distributed ledger that ensures transparency and prevents double spending.
Bitcoin runs on its own blockchain and uses cryptography to secure transactions and control the creation of new coins. New BTC is issued through a process called mining, where specialized hardware validates transactions and adds new blocks to the blockchain in exchange for a block reward. Bitcoin has a fixed supply of 21 million coins, which contributes to its scarcity.
Every four years, the rewards given to miners are halving in a process known as halving. So far, there have been four halvings, the most recent on April 2020, reducing block rewards to 3.125 BTC.
BTC can be used as a store of value, a means of transferring money globally, or for payments where accepted. Because it is the native coin of the Bitcoin network, BTC is also used to pay transaction fees and maintain the security of the blockchain.
