Key Features of Bitcoin
1. Decentralization
Bitcoin operates on a decentralized network, meaning it is not controlled by any single entity or government. This reduces the risk of censorship and manipulation.
2. Limited Supply
Bitcoin has a capped supply of 21 million coins. This scarcity contributes to its value and serves as a hedge against inflation compared to traditional fiat currencies.
3. Security
Utilizing advanced cryptographic techniques, transactions are secure and hard to counterfeit. The blockchain ledger is immutable, ensuring transaction transparency and integrity.
4. Peer-to-Peer Transactions
Bitcoin allows users to send and receive payments directly without intermediaries, enabling lower fees and faster transactions globally.
5. Anonymity and Privacy
While transactions are recorded on a public ledger, users are identified by alphanumeric addresses, providing a certain level of privacy.
6. Divisibility
Bitcoin can be divided into smaller units (up to eight decimal places), allowing for microtransactions and making it accessible for various transaction sizes.