Another key feature of bitcoin is its anonymity. Transactions are recorded on the blockchain, but the identities of the parties involved are not disclosed. This has made bitcoin popular among users who value privacy, but it has also attracted criminals who use the currency for illegal activities.

The value of bitcoin is determined by supply and demand in the market. It is not tied to any physical asset or government-issued currency, and its value can fluctuate wildly. In the early days of bitcoin, its value was relatively stable, but it has become more volatile over time. This volatility has made it both a potentially lucrative investment opportunity and a high-risk one.