Bitcoin is a decentralized digital currency that enables peer-to-peer transactions over the internet. It operates on a technology called blockchain, which is a distributed ledger that records all transactions.

Bitcoin transactions are verified by network nodes through cryptography and recorded on the blockchain. Users can send and receive Bitcoin using a digital wallet.

Bitcoin is backed by a decentralized network of miners and nodes that maintain its security and integrity through a Proof-of-Work (PoW) consensus mechanism. This system requires significant computational power to validate transactions and add them to the blockchain, making it resistant to attacks and fraud. The mining process not only secures the network but also creates new bitcoins, limited to a total supply of 21 million coins. This decentralized power structure, underpinned by the energy-intensive nature of mining, ensures that no single entity can control or manipulate the Bitcoin network, providing stability and trust in its value as a digital currency.

A Bitcoin wallet is a digital tool that allows you to store, send, and receive Bitcoin. There are different types of wallets, including hot wallets (online) and cold wallets (offline).

Bitcoin has strong security features due to its cryptographic foundations. However, users must ensure they follow best practices for wallet security, such as using two-factor authentication and keeping private keys safe.

Yes, many merchants and online retailers accept Bitcoin as a payment method. You can use Bitcoin to purchase goods, services, and even book travel.

Bitcoin mining is the process by which new Bitcoins are created and transactions are verified on the blockchain. Miners use powerful computers to solve complex mathematical problems, and in return, they earn Bitcoin rewards.

Some advantages include lower transaction fees compared to traditional banking, the ability to send money globally without intermediaries, and enhanced privacy.

Bitcoin is known for its price volatility, which can lead to significant gains or losses. Additionally, the regulatory environment around Bitcoin is constantly evolving, which could impact its value and usability.

Bitcoin was created by an anonymous individual or group using the pseudonym Satoshi Nakamoto. In 2008, Nakamoto published the Bitcoin whitepaper, outlining the concept of a decentralized digital currency. In 2009, Bitcoin was launched as open-source software, allowing anyone to participate. Nakamoto’s true identity remains a mystery.