Bitcoin is a decentralized digital currency, often referred to as cryptocurrency, created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network, meaning transactions occur directly between users without the need for an intermediary, such as a bank or government.

Bitcoin transactions are recorded on a public ledger called the blockchain, which is maintained by a network of computers known as miners. These miners use powerful computers to solve complex mathematical puzzles that validate and secure transactions on the network. In return for their efforts, miners are rewarded with newly created bitcoins.

One of the key features of Bitcoin is its limited supply. The total number of bitcoins that can ever exist is capped at 21 million, making it a deflationary asset. This scarcity is one of the factors that contribute to Bitcoin's value.

Bitcoin can be used for various purposes, including online purchases, remittances, and as a store of value. Its value is determined by supply and demand dynamics, similar to traditional currencies and commodities, and it experiences significant price volatility.

Overall, Bitcoin is seen as a revolutionary form of money that offers greater financial freedom, privacy, and security compared to traditional fiat currencies. However, it also poses challenges and controversies, particularly regarding its regulatory status, environmental impact due to energy-intensive mining, and its use in illicit activities.