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What is Crypto?

Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of the blockchain makes cryptocurrencies theoretically immune to the old ways of government control and interference. Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.

What is Bitcoin (BTC)?

Bitcoin is a digital currency and a decentralized peer-to-peer payment system introduced in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. It is the first and most well-known cryptocurrency, often referred to as the "digital gold" or the "king" of cryptocurrencies. Bitcoin operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers. The blockchain ensures the transparency, security, and immutability of Bitcoin transactions. It uses cryptographic protocols to secure transactions and control the creation of new units. One of the key features of Bitcoin is its decentralized nature, meaning it is not controlled or regulated by any central authority like a government or a financial institution. Instead, Bitcoin relies on a network of participants called miners who validate transactions and secure the network through computational power. Bitcoin is created through a process called mining. Miners use powerful computers to solve complex mathematical problems, and when they successfully solve a problem, they are rewarded with newly minted Bitcoins. This process also serves to confirm and verify transactions on the network. Bitcoin's limited supply is another notable characteristic. The total supply of Bitcoin is capped at 21 million coins, which means there will never be more than 21 million Bitcoins in existence. This scarcity, combined with increasing demand, has contributed to Bitcoin's price appreciation over time. Bitcoin has gained significant attention and adoption globally. It is used as a medium of exchange for goods and services, as a store of value, and as a speculative investment. Bitcoin can be bought, sold, and traded on various cryptocurrency exchanges. Its value can be subject to volatility, as it is influenced by factors such as market demand, investor sentiment, regulatory developments, and macroeconomic conditions. Bitcoin's underlying technology, the blockchain, has also sparked interest beyond the realm of digital currency. Its decentralized and transparent nature has the potential to revolutionize various industries, including finance, supply chain management, and more.