Bitcoin is a virtual currency also known as cryptocurrency, which was launched in 2009 by an unidentified developer or a group of developers by the alias of Satoshi Nakamoto. It can be distributed, traded, and stored using a decentralized ledger system known as a blockchain. In Nakamoto's own words, the purpose of Bitcoin was to enable "online payments to be sent directly from one party to another without going through a financial institution.”
Its purpose is to eliminate the need for a third party to be involved in financial transactions by acting as money and a means of payment, independent of any one person or organisation. It has grown to be the most well-known cryptocurrency worldwide. As a result of its popularity, numerous other cryptocurrencies have been created. Bitcoin is available for purchase on numerous platforms
Bitcoin’s total supply is limited to never exceed 21,000,000 coins. New coins are created during the process known as “mining”, which is a process where transactions are relayed across the network, they are then picked up by miners and packaged into blocks. These blocks are then protected by complex cryptographic calculations. These blockchain miners are paid by coins for their efforts in verifying transactions. The current market cap is $397,142,791,074 although it consistently fluctuates.
The real question is what is “real” money? The definition of real money is a tangible, portable, fungible, durable medium of exchange that can be stored for the purpose of wealth over a period of time - gold for example. However, real money is not necessarily fiat money, which is a paper currency that in fact does not hold an intrinsic value. Since it’s issued by the government, individuals and institutions use it for purchases and investments. So, since Bitcoin possesses some of the same properties as gold, thus real money, it can be considered as such.
A wallet allows you to store and manage your bitcoin. These wallets come in multiple forms - it can be a hardware (a device) or a software (program) wallet. The most important part of these wallets is the private keys, which is a long, randomly generated number that corresponds to a Bitcoin address. An important thing to keep in mind is that if your wallet is ever lost or stolen, your bitcoins will be lost forever. It’s essential to keep your wallet safe.
There are many advantages of using Bitcoin as a form of payment. You can send payment anywhere in the world, instantly, for a very small fee. It cannot be counterfeited, only a certain amount of bitcoins are created. Bitcoin can be an anonymous form of payment. Finally, since there is no middleman controlling the transactions, your funds cant be held or frozen.