Bitcoin is a decentralized digital currency that operates on a peer-to-peer network. It uses blockchain technology to securely record and verify transactions without the need for a central authority.
New bitcoins are created through a process called mining, where powerful computers solve complex mathematical problems to verify transactions on the blockchain. Miners are rewarded with newly created bitcoins for their efforts.
Bitcoins are stored in a digital wallet, which is essentially a software program that stores the private keys necessary to access and spend the bitcoins. These wallets can be stored on a computer, smartphone, or in the cloud.
While bitcoin transactions are recorded on the blockchain, they are not tied to any personally identifying information. However, with the proper resources and tools, it is possible to trace the flow of bitcoins and potentially link them to individuals.
Bitcoin is generally considered to be secure due to its use of advanced cryptography and decentralized network. However, individual users must also take necessary precautions to secure their own digital wallets and protect against potential hacks or scams.