We've all heard about Bitcoin. But what exactly is Bitcoin?
Let's start at the beginning. Around 100,000 years ago.
Throughout history, we've used all kinds of objects to help make transactions and store value, from seashells to shiny metals to paper notes. That's because the value isn't just in the object itself, it's in how much we agree the object represents. So, the object can be many things, even, as it turns out, a string of digital code.
The internet changed everything. It connected the world, changing how we communicate, work, shop and manage finances. It also opened the door to a new kind of currency and asset. Enter Bitcoin, a digital currency not governed by banks or governments, but by its global community of users. And that provided new potential benefits.
Bitcoin exchanges happen person-to-person, anywhere in the world, in near real time and for near zero transaction costs. Saving money, time and opening financial opportunity to those without access to a banking system.
Bitcoin has a fixed supply of 21 million bitcoins. This hard coded rule controls supply, purchasing power and helps avoid the potential misuse of printing more and more currency, which can contribute towards inflation.
All transactions take place on a digital ledger called the blockchain. It's a digital platform to move value, where everyone can see every transaction.
Bitcoin is no longer seen as the radical idea it was 15 years ago. Over 500 million people around the world now use cryptocurrency, with over 50% holding or investing in Bitcoin, making it the most popular cryptocurrency by far. Some use Bitcoin to transfer value across borders and for purchases. Some see Bitcoin as an investment given its limited supply and uniqueness relative to other financial assets. And for those in certain countries, its value goes far deeper, potentially offering greater financial autonomy by serving as an alternative to local currencies.
Bitcoin is an emerging global monetary alternative. Time will tell how far adoption will go, but next time you see a seashell or shiny metal, think about how humans’ idea of 'money' has evolved throughout history.
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The price of bitcoin fluctuates daily and the value of bitcoin is driven by various factors including market liquidity. Cryptoassets can be subject to high pricing volatility and substantial fluctuations.
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