What is Bitcoin?

Bitcoin is a decentralized cryptocurrency established in 2009 by the pseudonymous Satoshi Nakamoto. It functions as a peer-to-peer electronic cash system that operates without intermediaries, utilizing a blockchain secured by Proof of Work mining and the SHA-256 cryptographic algorithm. Bitcoin has a fixed supply cap of 21 million coins, with events known as halvings occurring approximately every four years to lower mining rewards.

The Bitcoin network records transactions on a public ledger referred to as the blockchain, which is distributed globally across numerous computers. Transactions are compiled into blocks added roughly every 10 minutes through mining efforts. The ecosystem has seen developments like the introduction of NFT-like functionalities and experimental token standards, alongside emerging financial applications that leverage Bitcoin beyond its traditional currency role.