Bitcoin explained.
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Bitcoin is a decentralized digital currency that was invented by an unknown person or group of people using the pseudonym Satoshi Nakamoto in 2009. It operates without a central bank or single administrator, and transactions are made directly between users on a peer-to-peer network without the need for intermediaries.
Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. The supply of Bitcoin is limited to 21 million, and new bitcoins are created through a process called mining, which involves solving complex mathematical problems using specialized hardware.
Bitcoin has become increasingly popular in recent years as a store of value and a means of payment, and its price has experienced significant volatility. Some people view it as a potential alternative to traditional currencies, while others remain skeptical of its long-term viability and warn of potential risks such as cybersecurity threats, regulatory challenges, and environmental concerns related to the energy consumption required for Bitcoin mining.
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