Bitcoin (₿) is the first decentralized cryptocurrency, invented in 2008 by Satoshi Nakamoto. Adopted as legal tender by El Salvador in 2021, it’s primarily viewed as an investment and sometimes considered an economic bubble. Its pseudonymous nature has drawn regulatory scrutiny due to potential criminal use.
The cryptocurrency operates through a peer-to-peer network where computers (nodes) maintain an independent, cryptographically secured blockchain ledger. Transactions are validated using complex cryptography, preventing unauthorized spending.
Bitcoin’s consensus mechanism, called mining, uses proof-of-work performed by specialized computers. This process prevents double-spending, ensures network agreement, and regulates new bitcoin issuance. However, mining has been criticized for its significant electricity consumption and environmental impact.
