What is Bitcoin?

Discover the revolutionary digital currency that's changing the world of finance. Learn how Bitcoin works, why it matters, and how it empowers financial freedom.

2009
Created
Digital Gold
Revolutionary Technology

Bitcoin Basics

Understanding money is so important before you begin to understand Bitcoin. This is vital. Let's break down what makes Bitcoin revolutionary.

What is Bitcoin?

Bitcoin is an online digital currency that operates without the need for banks or governments. It is effectively an online honest ledger sytem. It is truth. It cannot be manipulated or cannot be changed. Created in 2009 by an anonymous person or group known as Satoshi Nakamoto, Bitcoin represents the first successful implementation of a decentralized digital money system.

Unlike traditional currencies, Bitcoin exists only in digital form and uses cryptography to secure transactions. This makes it nearly impossible to counterfeit or double-spend.

Think of Bitcoin as "digital gold" - it's scarce (only 21 million will ever exist), durable, and serves as a store of value that transcends borders and political boundaries.

Golden bitcoin coin over defocused stock chart with copy space, Olsztyn, Poland 13 July 2021

Decentralized

No single authority controls Bitcoin. It's maintained by a global network of computers, making it resistant to censorship and manipulation.

Secure

Protected by advanced cryptography and the most powerful computational network in the world, making it extremely secure.

Limited Supply

Only 21 million bitcoins will ever exist, making it a deflationary asset that can't be inflated away by central banks.

How Does Bitcoin Work?

Bitcoin operates on a technology called blockchain - a public ledger that records all transactions. Here's the simple process:

1

Transaction

Someone sends bitcoins to another person using their digital wallet and the recipient's address.

2

Verification

The network of computers (miners) verifies the transaction is legitimate and the sender has the bitcoins.

3

Confirmation

Once verified, the transaction is added to the blockchain and cannot be reversed or altered.

Bitcoin vs Traditional Money

Understanding how Bitcoin differs from conventional currencies helps explain why it's revolutionary.

Traditional Money

Centralized Control

Controlled by central banks and governments

Unlimited Supply

Can be printed infinitely, leading to inflation

Intermediaries Required

Banks and payment processors take fees

Geographic Limitations

Restricted by borders and banking hours

Censorship Risk

Transactions can be blocked or reversed

Bitcoin

Decentralized Network

No single point of control or failure

Fixed Supply

Maximum 21 million bitcoins will ever exist

Peer-to-Peer

Direct transactions without intermediaries

Global & 24/7

Works anywhere, anytime, instantly

Censorship Resistant

Transactions cannot be stopped or reversed

Why Choose Bitcoin?

Global Access

Send money anywhere in the world instantly

Store of Value

Protection against inflation and devaluation

Financial Privacy

Pseudonymous transactions protect your identity

Lower Fees

Minimal transaction costs compared to banks

Frequently Asked Questions

Get answers to the most common questions about Bitcoin and how it works.

Is Bitcoin safe and secure?

How do I buy Bitcoin?

What is a Bitcoin wallet?

Why is Bitcoin valuable?

Can Bitcoin be regulated or banned?

How long do Bitcoin transactions take?

Ready to start your Bitcoin journey?