Easy Guide to Understanding Bitcoin

Bitcoin, introduced in 2008 by Satoshi Nakamoto, is a decentralized digital currency that enables direct peer-to-peer transactions without intermediaries like banks, using blockchain technology—a secure, public ledger maintained by a global network of computers. It is considered by some as an ideal form of money due to its capped supply of 21 million units, ensuring scarcity, divisibility into 100 million units called satoshis for transactions of any size, durability as a digital asset, portability for instant global transfers, fungibility where each unit is identical and interchangeable, and strong security maintained by miners who validate transactions and secure the network—often utilizing renewable energy sources to reduce environmental impact. Bitcoin also promotes financial inclusion by providing access to financial services for the unbanked, lowering remittance costs, and has the potential to challenge traditional assets like gold, possibly reshaping the future of global finance.