Bitcoin Hard Fact Edition 1 - Fact #7
Bitcoin is classified as a cryptocurrency because it utilizes cryptographic techniques to secure and verify transactions and to control the creation of new units. Specifically, Bitcoin relies on cryptographic algorithms to ensure the integrity of transactions, authenticate the transfer of funds between users, and regulate the issuance of new bitcoins. Additionally, the decentralized nature of Bitcoin, facilitated by blockchain technology, allows for peer-to-peer transactions without the need for intermediaries like banks or financial institutions. This combination of cryptography and decentralized ledger technology defines Bitcoin as a cryptocurrency, representing a digital form of currency that operates independently of any central authority.
