Bitcoin.
In plain English
Bitcoin is a digital currency created in 2009 that lets people send value over the internet without a bank. It runs on a blockchain, a shared public ledger maintained by thousands of computers, so no single company or government controls it. New coins are created on a fixed schedule and the total supply is capped at 21 million, which is why supporters call it digital scarcity. Its price is set by supply and demand on exchanges and can swing hard in either direction. It is used as a speculative investment far more than as everyday money.
01Why it matters
Bitcoin is the reference point for the entire crypto market, so understanding what it is, and that its price can move violently, is the starting point for judging any crypto claim you hear.
02The math, step by step
You buy 500 dollars of Bitcoin. If its price rises 20 percent your stake is worth 600 dollars; if it falls 40 percent, which has happened many times, it is worth 300 dollars. The same coin can do both in a single year.
03What this is NOT
Bitcoin is NOT backed by any government or physical asset, and it is not insured. Its value comes only from what buyers will pay, which is why it moves far more than a dollar in a bank account.
04Receipts
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