Three Key Facts About Bitcoin

Decentralization: Bitcoin operates on a decentralized network, meaning it is not controlled by any single entity, government, or organization. Instead, it relies on a peer-to-peer network of computers (nodes) that validate and record transactions on a public ledger called the blockchain. This decentralization makes Bitcoin resistant to censorship and interference.

Limited Supply: Unlike traditional currencies, Bitcoin has a capped supply of 21 million coins. This scarcity is programmed into the Bitcoin protocol and is achieved through a process called mining. As more Bitcoins are mined, the reward for mining decreases, making new coins increasingly difficult to obtain. This limited supply is one reason Bitcoin is often compared to digital gold.

Blockchain Technology: The foundation of Bitcoin's security and functionality is its underlying blockchain technology. The blockchain is a distributed ledger that records all transactions across the network. Each block contains a list of transactions, and once a block is added to the blockchain, it is nearly impossible to alter or remove. This transparency and immutability are key features that contribute to Bitcoin's trustworthiness.