A quick introduction to Bitcoin

Bitcoin is a decentralized digital currency. It represents a new kind of asset, alongside traditional ones like cash, gold, and real estate.

Bitcoin is a decentralized digital currency that allows peer-to-peer transactions without the need for intermediaries like banks. It operates on a secure, transparent blockchain technology.

What is Bitcoin?

Bitcoin is a decentralized digital currency. Let’s simplify that.

Bitcoin bridges the gap between traditional assets like cash and gold. For instance, you can use it as a currency for transactions or hold it as a store of value, much like gold.

What sets Bitcoin apart is its decentralized and “trustless” nature. This means that Bitcoin doesn’t rely on intermediaries, like banks, to facilitate transactions. In traditional finance, multiple businesses often act as middlemen in every transaction.

What appears to be a single middleman can actually involve many more. For instance, in a stock trading app, there could be several intermediaries between you and the seller, with each one taking a fee for their services!

Unlike most modern financial transactions, which are electronic, both physical cash and Bitcoin can be exchanged directly without relying on third parties or needing permission to create an account.

While cash transactions don’t require intermediaries, the creation of cash depends on trusted entities like central banks. On the other hand, new Bitcoin is generated through a set process and is capped at 21 million units