Bitcoin Basics: Digital Gold
Bitcoin is the first cryptocurrency and the largest by market cap. It introduced blockchain technology to the world.
What is Bitcoin?
Bitcoin is a decentralized digital currency created in 2009 by an anonymous person (or group) under the pseudonym Satoshi Nakamoto. It runs on a peer-to-peer network without a central authority.
How Does It Work?
Bitcoin uses blockchain technology—a distributed ledger that records every transaction across a network of computers (nodes). Miners validate transactions and secure the network by solving complex mathematical puzzles.
Supply & Scarcity
- Only 21 million Bitcoin will ever exist
- As of 2026, over 19 million have been mined
- New Bitcoin are created through mining (halving every 4 years)
- Scarcity is a key feature, not a bug
Bitcoin vs Traditional Money
Bitcoin: Decentralized, pseudonymous, global, immutable, no intermediaries
Fiat Currency: Controlled by central banks, regulated, reversible transactions, geographic constraints
Many view Bitcoin as "digital gold"—a store of value and hedge against inflation.