1 BTC = $120,131 USD - How it's operating free from central authority?

puncakbukit (78)in #btc • 5 days ago

5% of the rewards of this post are for @steem.amal

_{(Chart by TradingView)}

Bitcoin is a decentralized digital currency operating on a peer-to-peer network, free from central authority. Technical analysis confirms its positive momentum, with the Ultimate Moving Average indicator showing a consistent increasing trend. This suggests sustained buying pressure and a bullish outlook for the asset.

The network utilizes public-key cryptography to secure transactions. However, a recent shift in market sentiment is indicated by the SuperTrend indicator, which has just switched to a sell signal. This reversal suggests a potential short-term downtrend or a period of consolidation.

A key feature of Bitcoin is its pre-programmed, finite supply of 21 million BTC. This scarcity positions it as a deflationary asset, offering a stark contrast to the inflationary tendencies of traditional fiat currencies and potentially preserving value over the long term.

About Bitcoin (BTC)

Bitcoin (BTC) is a decentralized digital currency that operates on a peer-to-peer network, free from the control of any central authority like a government or bank. Its core innovation is the blockchain, a distributed, public ledger that chronologically records all transactions. This ledger is maintained by a global network of computers, or nodes, which collectively validate and secure the system.

Unique Features of Bitcoin

Cryptographic Security and Digital Signatures 🔐

Bitcoin relies on public-key cryptography to secure transactions. Each user has a private key and a public key. The public key is used to generate a unique wallet address for receiving funds, while the private key is a secret, used to digitally sign transactions. This digital signature proves ownership of the funds and authorizes the transfer, ensuring that only the rightful owner can spend their bitcoin. The use of the Elliptic Curve Digital Signature Algorithm (ECDSA) provides a robust, tamper-proof method for verifying transactions without revealing the private key.

The Proof-of-Work Consensus Mechanism ⛏️

The integrity of the Bitcoin network is upheld by its Proof-of-Work (PoW) consensus mechanism. This process, known as mining, involves a competitive race among miners to solve a complex cryptographic puzzle. Miners repeatedly hash a block of pending transactions, along with other data, until they find a hash that meets a specific difficulty target. The first miner to find a valid hash broadcasts the new block to the network. Nodes then verify the block's validity, and once a consensus is reached, it's added to the blockchain. This energy-intensive process secures the network against fraudulent activities, like double-spending, and incentivizes participants with newly minted bitcoin and transaction fees.

Decentralized and Censorship-Resistant Network 🌐

The Bitcoin network is fully decentralized, meaning no single entity has the power to censor transactions or shut down the system. The blockchain's public and immutable nature ensures that once a transaction is recorded, it cannot be altered or removed. This transparency allows anyone to audit the entire transaction history, while the network's distributed architecture provides resilience and censorship resistance. Its pre-programmed, finite supply of 21 million BTC also positions it as a deflationary asset, designed to counter the inflationary nature of traditional fiat currencies.

Disclaimer: This is not financial advice—investing is risky, do your own research, and consult a qualified professional before making decisions.

Assisted by https://gemini.google.com/.