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What is Bitcoin?

2025-08-04

Bitcoin (BTC for short) is a decentralized digital currency created by an individual or team under the pseudonym Satoshi Nakamoto in 2009. It is considered the world's first cryptocurrency, operating on blockchain technology and known for its decentralization, transparency, and scarcity. The birth of Bitcoin aims to provide humanity with a peer-to-peer electronic payment system that does not rely on banks or governments.

Features of Bitcoin

  1. Decentralization Bitcoin has no central authority or publisher. It operates through a distributed ledger technology called blockchain. Blockchain is jointly maintained by countless nodes around the world, and each node maintains a complete transaction record, ensuring that the system is transparent and not controlled by any single entity.
  2. Scarcity The total supply of Bitcoin is strictly limited to 21 million coins. This scarcity is similar to gold, making Bitcoin known to many as "digital gold" and a potential store of value.
  3. Resistance to censorship The Bitcoin network has strong censorship resistance. Anyone can participate in the Bitcoin network with just a digital wallet and internet connection, without the need for third-party licenses or intermediaries.
  4. Transparency All Bitcoin transactions are recorded on the blockchain, which is open and transparent. Anyone can query the transaction records, but the user's identity remains anonymous. Every Bitcoin transaction is tracked on the blockchain , which is similar to a bank's ledger or a log of customer funds entering and leaving the bank. In short, it records every transaction that has ever been made with Bitcoin.
  5. Separability A bitcoin can be divided into 100 million smallest units (called "Satoshi"), which allows bitcoin to meet the needs of small transactions.

The operating principle of Bitcoin

Bitcoin operates based on blockchain technology, which is a decentralized distributed ledger that records all Bitcoin transactions. Its operation relies on the following core mechanisms.

  1. Proof of Work (PoW) Miners solve complex mathematical problems through mining, provide verification for Bitcoin transactions, and package transactions into blocks. As a reward, miners receive newly generated Bitcoin and transaction fees.
  2. Peer-to-peer network Bitcoin transactions are spread through a global peer-to-peer network without the need for traditional banks or payment intermediaries.
  3. Encryption technology Bitcoin transactions are encrypted using public and private keys to ensure transaction security and user privacy.

Conclusion

Bitcoin is a revolutionary digital currency that provides a payment method without intermediaries through blockchain technology. Although Bitcoin still faces challenges in technology, regulation, and market fluctuations, it has become one of the important innovations in the global financial field, driving people to rethink the currency and financial system.

Disclaimer:

This material is for general information purposes only. It does not constitute, nor should be interpreted as, any form of solicitation, offer or recommendation of any product or service. It does not constitute investment, tax or legal advice. In no event should any news release be considered as recommendation of a particular type of digital asset.

This material may include market data prepared by HashKey Exchange or data from third party sources. While HashKey Exchange makes reasonable efforts to ensure the reliability of such third-party information, such information may have not been verified. Graphics are for reference only. We make no representation or warranty, express or implied, to the timeliness, accuracy or completeness of the information in this material. Information may become outdated, including as a result of new plans, regulations or changes in the market. In making investment decisions, investors should not solely rely on the information contained in this material. The risk of loss in trading digital assets can be substantial and is not suitable for all investors.

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