Bitcoin

Purpose and Utility

Bitcoin was created in 2009 by Satoshi Nakamoto as a peer-to-peer electronic cash system. Its primary intended purpose is to serve as a decentralized digital currency and store of value, operating independently of traditional financial institutions.

Current Usage

Bitcoin is widely used as both a medium of exchange and a store of value. Major companies like Microsoft, PayPal, and Tesla have accepted or currently accept Bitcoin payments. Countries like El Salvador have adopted it as legal tender. The network processes hundreds of thousands of transactions daily.

Business Model

Bitcoin operates through a transparent, open-source protocol. The network is maintained by miners who secure transactions through Proof of Work consensus. All transactions are publicly visible on the blockchain. The protocol doesn't involve interest-bearing products or prohibited activities.

Development Activity

Bitcoin maintains active development through Bitcoin Core and other implementations. Recent developments include Taproot upgrade for enhanced privacy and smart contract capability, and Lightning Network for scalability. The ecosystem continues to expand with developments in custody solutions, payment systems, and institutional adoption.

Token Distribution

Bitcoin's creator never premined coins for personal benefit. New bitcoins are created through mining, with a fixed supply cap of 21 million. No single entity controls a majority of the supply. Early holders who may have accumulated significant amounts did so through mining or market purchases.