Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, is a decentralized digital currency that operates on a peer-to-peer network. As the first and most well-known cryptocurrency, Bitcoin has revolutionized the financial landscape. It relies on a technology called blockchain, a distributed ledger that records all transactions across a network of computers, ensuring transparency and security.

The key innovation of Bitcoin is its proof-of-work consensus mechanism, where miners compete to solve complex mathematical problems in order to validate and add new transactions to the blockchain. This process not only secures the network but also issues new bitcoins as a reward for successful miners.

Bitcoin's finite supply of 21 million coins contributes to its appeal as a store of value. Its decentralized nature means no central authority controls or regulates it, providing financial inclusion to those without access to traditional banking.

However, Bitcoin has faced criticism due to its energy consumption from mining activities and volatility in its price. Yet, it has gained acceptance as a legitimate asset class, with institutions and investors increasingly recognizing its potential as a hedge against inflation and a decentralized alternative to traditional currencies. Bitcoin continues to shape the conversation around the future of money and finance.