Bitcoin is a decentralized digital currency that can be sent electronically from one user to another without the need for a middleman such as a bank or government. It is based on blockchain technology, which is a decentralized, public ledger that records all bitcoin transactions.
Bitcoins are created through a process called mining, in which powerful computers solve complex mathematical problems and are rewarded with new bitcoins. The total number of bitcoins that can be mined is limited to 21 million.
Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures the integrity and chronological order of all transactions. Transactions are processed by a network of users called miners, who are incentivized by the system to validate transactions and maintain the integrity of the blockchain.
Bitcoin can be used for a wide variety of purposes, such as online shopping, international money transfers, and investment. However, it is also associated with illegal activities such as money laundering and tax evasion, which has led to increased regulatory scrutiny in many countries.
Bitcoin’s value is extremely volatile, and its price has fluctuated greatly since it was first created. Despite this, it has gained a significant following and has become one of the most well-known and widely-used cryptocurrencies.