Bitcoin is a decentralized digital currency that lets people send value to each other over the internet without a bank. It runs on a public ledger called a blockchain and is secured by a network of computers using c*****graphy.
Key points:
- Origin: Proposed in 2008 by the pseudonymous Satoshi Nakamoto; network launched in 2009.
- How it works: Transactions are grouped into blocks and added to the blockchain by “miners” via proof-of-work. Miners earn new bitcoin and fees.
- Supply: Capped at 21 million coins; new issuance decreases roughly every four years (the “halving”). Each bitcoin is divisible to 0.00000001 BTC (1 satoshi).
- Properties: Open, borderless, censorship-resistant, and not controlled by any single entity. Transactions are pseudonymous, not fully anonymous.
- Use cases: “Digital gold” (store of value), payments and remittances, and as a settlement asset. Faster, cheaper payments can use the Lightning Network.
- Trade-offs/risks: Price volatility, loss of funds if you lose your private keys, scams, variable fees and confirmation times (~10 minutes per block), regulatory and tax considerations, and energy use from mining.
- Getting and storing: You can buy on exchanges or peer-to-peer, earn it, or mine it. Hold it in a wallet—either custodial (third party holds keys) or non-custodial (you control the keys).
Feb 16 2026, 15:14Mark