Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person or group using the name Satoshi Nakamoto. Bitcoin transactions are recorded on a public digital ledger called the blockchain, which is maintained by a network of computers around the world. Unlike traditional currencies, Bitcoin operates without a central bank or single administrator. Instead, it relies on a decentralized network of users to validate transactions and manage the issuance of new units of currency.

Bitcoin can be bought and sold on online exchanges, and it can also be used to purchase goods and services from merchants who accept Bitcoin as payment. The supply of Bitcoin is limited to 21 million units, which are gradually released into circulation through a process called mining. Bitcoin has gained popularity among investors and speculators due to its potential for high returns and its relative independence from traditional financial systems. However, its volatility and lack of regulation have also made it a controversial asset.