Bitcoin, the best-known cryptocurrency
Bitcoin is a decentralised digital currency created in 2009 by an unidentified developer or group of developers under the pseudonym Satoshi Nakamoto. It was the first cryptocurrency to use blockchain technology, an open and accountable transaction database.
Bitcoin Basics:
Decentralized: It has no central management or issuer, like traditional currencies. Instead, it operates on a peer-to-peer network, where transactions are controlled and recorded by network participants.
Blockchain: Bitcoin transactions are recorded in a publicly accessible, chained block of data (blockchain). This ensures transparency and makes it difficult to misuse the data.
Mining: New bitcoins are created and transactions verified through a process of "mining", where miners use high computing power to "decipher" new blocks and are rewarded in the form of bitcoins.
Limited supply: the bitcoin system is designed to never have more than 21 million bitcoins. This measure provides inflation protection as the supply is limited.
Security: The use of Bitcoin requires a high level of security, as the protection of digital wallets and keys is critical for users.
Commercial transactions: More and more merchants and businesses are accepting bitcoin as a payment method.
Investment: Bitcoin is widely regarded as "digital gold", considered an investment vehicle because of its volatility and stability of value.
Remittances: Bitcoin can be used to make fast and cheap international money transfers, especially in places where traditional banking infrastructure is limited.
Bitcoin has attracted considerable attention in recent years, partly because of its high volatility and potentially high returns, and partly because of the innovative technology it represents. However, it also faces a number of challenges, including regulatory issues, links to money laundering and other illegal activities
Best books on Bitcoin and cryptocurrency:
