Bitcoin

The Bitcoin (BTC) is considered the very first cryptocurrency. With Bitcoin, a revolutionary decentralized technology called blockchain was introduced. Unlike traditional currencies, Bitcoin is not controlled by a government or a bank but by a network of computers (miners) globally. Because this network is operated by many independent parties, it is referred to as a decentralized currency. Users can buy, sell, and transfer bitcoins without the need for a central third party, such as a bank. The blockchain, a public database, verifies and stores all transactions, ensuring transparency and security. The limited supply of 21 million bitcoins makes it clear that there will never be more than 21 million bitcoins, limiting the supply side. Therefore, Bitcoin is often referred to as "hard money." In contrast, the supply of central bank currencies can be increased since the dissolution of the gold standard, leading to currency devaluation (known as inflation). It is important to understand that despite its potential, Bitcoin is very volatile (like most cryptocurrencies) and thus experiences significant price fluctuations.