đ Bitcoin
Last updated
Last updated
Bitcoin is a digital currency built on a decentralized blockchain, allowing users to send and receive money online without the need for a central authority like a bank. BTC is the native currency of the Bitcoin blockchain; it's used as a store of value, to transfer value, and to pay transaction fees across the network. For a long time, BTC (Bitcoin) has not provided any rewards for holding it. This stands in contrast to other blockchains that utilize a proof-of-stake (PoS) mechanism, allowing coins to be staked to enhance security and validate the network to earn rewards.
Bitcoin functions through a mechanism known as proof-of-work (PoW) in which miners compete to solve a complex cryptographic puzzle. The miner who solves the cryptographic puzzle completes a block and earns a reward of 3.125 BTC per block. This process is repeated continuously, with the BTC reward per block reduced by half approximately every four years through an event called "halving." In contrast to PoS, in a PoW system, coins can't be staked to improve security and validate the network; this responsibility lies with the miners.
Bitcoin was introduced by an anonymous entity known as Satoshi Nakamoto in 2008 through a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System".
The Bitcoin blockchain went live on January 3, 2009.
BTC is the native currency of the Bitcoin blockchain
The total supply of Bitcoin (BTC) is capped at 21 million, introducing scarcity akin to precious metals.
Bitcoin serves as a store of value and has been embraced as "digital gold," with its influence extending into various aspects of the global financial system.
Bitcoin ETFs
With the approval of spot Bitcoin ETFs, the adoption of Bitcoin is poised to accelerate as traditional investors gain a regulated and straightforward means to gain exposure to the cryptocurrency. This ease of access, coupled with the legitimacy conferred by regulatory approval, attracts substantial institutional investment, increasing market liquidity and stability. Additionally, the integration of Bitcoin into established financial infrastructure through ETFs promotes broader public awareness and acceptance, fostering a more robust and diversified investment landscape.
Legal Tender
As of 2024, Bitcoin is recognized as legal tender in El Salvador and the Central African Republic, revolutionizing financial landscapes in these countries. This status allows for seamless and equal footing with national currencies, facilitating easier and cheaper transactions, especially for the unbanked population. The adoption of Bitcoin has spurred economic growth, attracted foreign investment, and promoted financial inclusion. This pioneering move sets a precedent for other nations, opening doors to broader acceptance and integration of cryptocurrency into the global economy.
