About Bitcoin

Bitcoin, established in 2009 by an anonymous entity known as Satoshi Nakamoto, is recognized as the first decentralized cryptocurrency. It facilitates direct peer-to-peer electronic cash transactions, eliminating the need for intermediaries such as banks or governmental institutions. The underlying technology is a blockchain secured through Proof of Work mining, utilizing the SHA-256 cryptographic algorithm. Bitcoin's supply is capped at 21 million coins, and its deflationary nature is reinforced by programmed halvings that occur every four years, reducing the rewards for miners. This design positions Bitcoin as a scarce digital asset, often referred to as "digital gold," which effectively addresses the double-spending problem without relying on trusted third parties. The Bitcoin network functions as a decentralized system where transactions are documented on a public ledger, distributed across a global network of computers. Transactions are compiled into blocks and added to the blockchain approximately every ten minutes through a competitive mining process. Bitcoin has gained significant traction in mainstream finance, particularly following the SEC's approval of multiple spot Bitcoin ETFs in January 2024, which has opened investment opportunities to traditional financial entities. Additionally, companies like Strategy are adopting Bitcoin as a treasury reserve asset to hedge against currency devaluation. The Bitcoin ecosystem is also witnessing innovations such as Ordinals and BRC-20 tokens, which enable new functionalities and financial applications, thereby expanding Bitcoin's role beyond its original purpose.