What Is Bitcoin?

Bitcoin is the world's first decentralized cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. It operates on a peer-to-peer network using blockchain technology, allowing users to send and receive value without intermediaries like banks.

How Bitcoin Works

Bitcoin transactions are verified by network participants called miners through a process known as Proof of Work. Miners use computational power to solve complex mathematical puzzles, and in return, they receive newly created Bitcoin as a reward.

All transactions are recorded on the Bitcoin blockchain—a public, immutable ledger distributed across thousands of computers worldwide.

Key Features

• Fixed Supply: Only 21 million Bitcoin will ever exist, making it a scarce digital asset.
• Decentralized: No single entity controls the Bitcoin network.
• Transparent: All transactions are publicly visible on the blockchain.
• Borderless: Bitcoin can be sent anywhere in the world without traditional banking infrastructure.

Bitcoin Halvings

Approximately every four years, the reward miners receive for creating new blocks is cut in half. This event, called a "halving," reduces the rate at which new Bitcoin enters circulation and has historically been associated with significant price movements.

Storing Bitcoin

Bitcoin is stored in digital wallets. Users can choose between hot wallets (connected to the internet) for convenience or cold wallets (offline) for enhanced security. The phrase "not your keys, not your coins" emphasizes the importance of self-custody.