Sasanka De Silva Pannipitiya.

Bitcoins are a type of digital currency, often referred to as cryptocurrency.

They exist only in digital form and are not physical coins or notes that you can hold.

Just like regular money, you can use bitcoins to buy goods and services, but they are mainly used for online transactions.

Bitcoins are created through a process called mining.

However, it’s not like traditional mining where you dig the ground.

In Bitcoin mining, powerful computers perform complex calculations to validate and record transactions on a public ledger called the blockchain.

Miners compete to solve these calculations, and the first one to solve it correctly gets rewarded with newly created bitcoins.

This is how bitcoins came into existence.

Unlike traditional currencies that governments or central banks control, bitcoins are decentralized.

This means that no single person or entity controls them. Instead, they are governed by a computer network that participates in the Bitcoin system.

This decentralized nature is one of the key features of bitcoins, as it makes them resistant to censorship and manipulation.

As for the future of bitcoins, it’s challenging to predict with certainty.

Some people believe that cryptocurrencies, including Bitcoin, have the potential to revolutionize the financial system and become widely accepted as a mainstream form of payment.

Others are more sceptical and see bitcoins as highly volatile and risky investments.

The value of bitcoins can fluctuate significantly in a short period, which makes them attractive to some investors but also risky.

Additionally, the regulatory environment around cryptocurrencies is still evolving in many countries, which can affect their future adoption and acceptance.

In summary, bitcoins are digital currencies created through a process called mining, and they are controlled by a decentralized network of computers.

Their future is uncertain, with some seeing them as a transformative technology while others consider them risky.

It’s important to remember that investing in bitcoins or any cryptocurrency carries risks, and it’s advisable to do thorough research and exercise caution before getting involved.