Bitcoin was created to solve several problems that exist in traditional money and financial systems. The main problems it aims to solve are

1. DOUBLE-SPENDING PROBLEM:

I. In digital systems, data can be copied easily. Without a central authority, digital money could be duplicated and spent more than once.

ii. Bitcoin solved this with blockchain, where every transaction is verified, timestamped, and recorded on a public ledger, preventing double spending.

2. CENTRALIZED OF MONEY:

i. Traditional currencies are controlled by governments and central banks, which can print more money (causing inflation), freeze accounts, or impose restrictions.

ii. Bitcoin is decentralized and not controlled by any single authority.

3. TRUST DEPENDENCY:

I. Banks and payment processors act as trusted intermediaries, but they charge fees, impose rules, and sometimes fail (bank runs, corruption, fraud).

ii. Bitcoin replaces “trust in third parties” with trust in cryptography and code.

4. CENSORSHIP RESISTANCE:

i. Transactions in the traditional system can be blocked, reversed, or monitored.

ii.Bitcoin allows peer-to-peer global payments that cannot easily be censored.

5. FINANCIAL INCLUSION:

I. Billions of people lack access to banks but can access the internet.

ii. Bitcoin provides an open financial system where anyone with a phone can store and transfer value.

🔑 IN SHORT: Bitcoin was designed as a decentralized, scarce, and censorship-resistant form of digital money that solves the problem of trust and control in traditional financial systems.