What is a Bitcoin token?

Bitcoin (BTC) is the first and most well-known cryptocurrency in the world, created in 2009 by an anonymous individual or group of individuals under the pseudonym Satoshi Nakamoto. Unlike traditional money, Bitcoin is a decentralized digital currency that operates on blockchain technology.

How does Bitcoin work? Bitcoin is based on the blockchain network - a distributed ledger that contains records of all transactions. To confirm transactions, the Proof-of-Work consensus mechanism (PoW) is used, which requires complex computations (mining).

What is the difference between Bitcoin and tokens? Although BTC is sometimes called a token, it is actually the native cryptocurrency of the Bitcoin network. Tokens, on the other hand, are usually created on other blockchains such as Ethereum and can have various functions — from digital assets to smart contracts.

Advantages of Bitcoin:✔️ Decentralization and independence from banks✔️ Limited emission of (21 million coins)✔️ High security thanks to blockchain

Bitcoin remains the most valuable and popular cryptocurrency used for investment, payments, and capital preservation.