btc

Bitcoin, abbreviated BTC, is a decentralized digital currency created in 2009 by an anonymous person or group known as Satoshi Nakamoto. It was designed to enable peer-to-peer value transfer over the internet without central intermediaries. Transactions are recorded on a public ledger called the blockchain and verified by a network of participants running software on their computers.

Bitcoin relies on a proof-of-work consensus mechanism. Miners expend computational effort to solve cryptographic puzzles, adding new blocks to the chain and collecting newly issued bitcoins as a reward. The system is permissionless, allowing anyone to join as a node, verify transactions, or mine, subject to protocol rules. Ownership is controlled by private keys, typically stored in digital wallets, and transactions are broadcast to the network for verification. The supply is capped at 21 million coins, and the rate of new issuance halves approximately every four years.

Economically, Bitcoin operates as a highly volatile asset whose price is determined by supply and demand across global markets. It has been described as a store of value and, by some users, as a medium of exchange, though its use in everyday transactions remains limited by scalability and cost considerations. Critics point to energy consumption, price volatility, and regulatory uncertainties as ongoing challenges.

Bitcoin development is community-driven and largely open source. Proposals to modify the protocol, known as Bitcoin Improvement Proposals (BIPs), require broad consensus and may be implemented through forks. Bitcoin has inspired a family of cryptocurrencies and a growing ecosystem of wallets, exchanges, and payment services, with varying degrees of mainstream adoption.