Bitcoin is a decentralized digital currency (and the network that runs it) launched in 2009 by the pseudonymous creator Satoshi Nakamoto.
Key points:
- No central authority: Transactions occur peer to peer and are recorded on a public, distributed ledger called the blockchain.
- How it works: Independent nodes validate transactions; miners use proof-of-work to add blocks roughly every 10 minutes, earning newly issued bitcoin (BTC) plus fees.
- Fixed supply: Capped at 21 million BTC, with issuance cut in half about every four years (“halvings”).
- Divisible: 1 BTC = 100,000,000 satoshis (“sats”).
- Security/ownership: Control comes from holding private c*****graphic keys, typically managed by a wallet. Transactions are irreversible and pseudonymous (addresses, not real names).
- Properties: Borderless, censorship-resistant, transparent ledger; fees and confirmation times vary with network demand. Some payments use the Lightning Network for faster, cheaper transfers.
- Uses: Store of value (“digital gold”), cross-border transfers, and speculation; some merchants accept it.
- Risks: High price volatility, self-custody mistakes can lead to loss, scams/phishing, regulatory uncertainty, and environmental concerns from mining energy use.
Feb 16 2026, 15:05Mark