Bitcoin is the first decentralized digital currency, introduced in 2009 by an anonymous entity known as Satoshi Nakamoto. It operates without the need for intermediaries like banks or governments. Bitcoin transactions are recorded on a blockchain, a public and immutable ledger, ensuring transparency and security.

Bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to verify and add transactions to the blockchain. The total supply of Bitcoin is capped at 21 million, making it a scarce asset, often referred to as "digital gold."

Bitcoin is widely used for investment, as a medium of exchange, and sometimes as a hedge against inflation and economic instability. However, its price is highly volatile, influenced by market sentiment, government policies, and technological developments.

Overall, Bitcoin has paved the way for the development of other cryptocurrencies and has revolutionized the way the world views money and financial transactions.