What is Bitcoin and How Does it Work?

What is Bitcoin? Bitcoin is a decentralized digital currency, not controlled by any central authority like a government or bank.

What is Blockchain? Transactions are recorded on a public ledger called the blockchain, ensuring transparency and security.

[{"selector":"#anim-30fe2edc-6919-4733-a684-850acd4ec250","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2cdeb3d2-efd2-43d4-a839-5f2eed60ddd9","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

What is Decentralized Network? It operates on a peer-to-peer network of computers (nodes), removing the need for intermediaries in transactions.

[{"selector":"#anim-0d6a0b08-1974-4f74-b9a4-def3f7e2e972","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-a4a5abd2-9677-4042-acd8-7120f899672d","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

What is Mining? New Bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems.

[{"selector":"#anim-30bbef72-82e0-4e5f-9005-6f3369b0546a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-08d27e9b-2f21-4a45-b50e-87b75686cddd","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Limited Supply: There's a cap of 21 million Bitcoins, making it a deflationary currency and potentially impacting its value over time.

[{"selector":"#anim-7aabc0ea-2b6d-4431-a691-107fb56a9b8a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-394d9752-14cd-4a84-8d71-3ba4b2ae6b1e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Ownership through Wallets: Users have digital wallets containing public and private keys, allowing them to send or receive Bitcoin.

[{"selector":"#anim-b7cb687e-ad44-44c0-b5ec-61073438f897","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-43b73b8d-edec-436c-b67c-e2d677e3df5b","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Volatility: Bitcoin's value can be highly volatile, influenced by factors like market demand, adoption rates, and regulatory news.

[{"selector":"#anim-51daa50d-1a5c-450d-95e9-2d68ee891f60","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2b9638a4-af22-4036-9c69-6802e0771466","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Transaction Confirmation: Transactions need to be verified by nodes on the network, adding to the security of the system.

[{"selector":"#anim-f634ed81-6a55-4330-9570-c40168f43596","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-399831a2-ac90-4005-98ea-e53cb1a14157","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Anonymity and Transparency: While transactions are recorded on the blockchain, the identities of the parties involved are encrypted.

[{"selector":"#anim-c9813592-51fd-4405-a7b4-78ec67e777b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-acedbdfc-3058-4572-9a64-45200e1b05ed","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Potential for Innovation: Beyond currency, Bitcoin's underlying technology, blockchain, has implications for various industries.

[{"selector":"#anim-908d2162-a7b8-4bc4-bf9d-7ebcc75d82a3","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3928a3ba-45b9-4954-973c-3a150fddd5b7","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Bitcoin's chart history showcases its extraordinary growth, marked by significant price surges and an ever-increasing market value, cementing its position as the pioneer and most valuable cryptocurrency.

[{"selector":"#anim-6bdf65a4-f9fa-4033-8836-464d85773b22","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3f553dda-207e-4ba2-b080-27d08bcf6263","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]