What is BTC?
Bitcoin (BTC) is the first digital currency that works without a central authority, allowing people to send money directly to each other using blockchain technology.
- Decentralized Currency – Runs on a network where no single person or group is in control.
- Proof-of-Work Blockchain – Transactions are secured by miners solving complex puzzles.
- Fixed Supply – Only 21 million BTC will ever exist, making it scarce.
Deep Dive
1. Purpose & Value
Bitcoin was launched in 2009 to let people make online payments directly, without needing banks or governments (CoinMarketCap). Because it’s decentralized, it helps avoid problems like censorship and inflation by removing middlemen from controlling money.
2. How It Works
Bitcoin operates on a blockchain, which is like a public record book where all transactions are grouped into blocks and secured using special codes called cryptographic hashes. The Proof-of-Work system means miners compete to solve puzzles that confirm transactions, keeping the network safe and preventing fraud like spending the same Bitcoin twice.
3. Supply & Control
Bitcoin’s total supply is limited to 21 million coins. New Bitcoins are created as rewards for miners, but these rewards get cut in half roughly every four years (every 210,000 blocks). Decisions about Bitcoin’s future are made collectively by users, developers, and miners, rather than a central authority.
Conclusion
Bitcoin changes how we think about money by making it decentralized and secure through cryptography. It’s mainly used for payments and storing value, but as more people use it, questions remain: Can Bitcoin grow and handle more users while staying true to its original design?