Bitcoin (BTC) is a cryptocurrency created in 2009 by a person using the anonymous name of Satoshi Nakamoto. Bitcoin was designed by this mysterious character as an electronic payment based on mathematical proof.
Bitcoin was originally released as open-source software and is generally considered the first decentralized cryptocurrency.
As opposed to traditional currencies like dollars, euros, pounds etc., Bitcoin is not controlled by any central authority. Therefore, Bitcoin is independent from any governments or financial institutions. The security of coins is ensured by a database distributed between peer-to-peer nodes called blockchain.
What’s more, in contrast to traditional currencies Bitcoin’s characteristic is also limited supply. There can’t be created more coins than it was intended for circulation. In the case of Bitcoin, it is 21 million units.
Bitcoin is a deflation currency, which means that its value increases with time. That way, currency inflation is virtually impossible. Bitcoin can be stored in online wallets and it can be transferred to any party which possesses a Bitcoin address. It is possible to speculate about the value of Bitcoin and therefore, it is worth to trade it on the cryptocurrency market and make profit attempts at changing BTC prices.
Ethereum is called a „younger brother of Bitcoin”.