Bitcoin

What is Bitcoin (BTC)?

Bitcoin (BTC) is the first digital currency to operate without a central authority, allowing people to send value directly to one another since its launch in 2009. The system runs on open-source software and was introduced in a whitepaper by a developer using the pseudonym Satoshi Nakamoto. Its release in the aftermath of the global financial crisis framed it as a practical answer to the demand for an alternative monetary system.

The Bitcoin ledger is designed to be tamper-proof

Every transaction on the network is recorded on a shared public ledger called the blockchain. New transaction batches are grouped into blocks, and each block is cryptographically linked to the previous one — altering a single entry would require rewriting every block that follows it. This chain structure makes the transaction history effectively irreversible and open for anyone to inspect.

BTC has a supply that cannot be manipulated

One of Bitcoin's core differences from traditional currencies is its hard-capped supply of 21 million coins. Fresh BTC enters circulation through block rewards: miners who validate transactions and add new blocks to the chain receive a set amount of newly created Bitcoin. That reward is cut in half roughly every four years in events called halvings. The predictable and fixed issuance schedule is designed to make BTC resistant to the kind of inflation that erodes the value of government-issued money.

Practical constraints of the Bitcoin network

The network relies on a verification method called Proof of Work. Miners compete to solve computationally intensive puzzles, a process that demands substantial electricity. Furthermore, the Bitcoin blockchain has a limited transaction throughput; during periods of high demand, confirmation times can stretch and transfer fees can climb. These technical ceilings remain a hurdle for Bitcoin's role as an everyday payment system.