Bitcoin - Page 16
Bitcoin is a decentralized digital currency that operates without a central authority or single administrator. It was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin allows for peer-to-peer transactions over the internet, enabling users to send and receive payments directly without intermediaries like banks.Transactions are recorded on a public ledger known as the blockchain, which is maintained by a network of computers (nodes) that validate and timestamp each transaction. Bitcoin is based on cryptographic principles, using blockchain technology to secure transactions and control the creation of new units.New bitcoins are generated through a process called mining, where miners use computational power to solve complex mathematical problems, thereby confirming transactions and adding them to the blockchain. Bitcoin is known for its limited supply, capped at 21 million coins, which introduces scarcity in the digital currency.Bitcoin's value is determined by market supply and demand dynamics, making it a highly volatile asset. It has become known as a store of value and a speculative investment, while also being adopted for various uses in online transactions and remittances.
