Bitcoin is a decentralized digital currency created in 2009 by an anonymous entity named Satoshi Nakamoto, fundamentally relying on blockchain technology to enable peer-to-peer transactions without a central authority.
Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures transparency and security by allowing anyone to verify transactions without altering them.
The smallest unit of Bitcoin is called a satoshi, named after its creator, which is worth 0.00000001 BTC, allowing for microtransactions and enhancing its usability for small purchases.
As of April 8, 2025, the value of 1 Bitcoin fluctuates around $7,832,063, influenced by market supply and demand, trading volume, and investor sentiment.
The Bitcoin network is maintained by miners, who use powerful computers to solve complex mathematical problems, validating transactions and adding them to the blockchain in exchange for newly minted Bitcoins as a reward.
Bitcoin's total supply is capped at 21 million coins, a feature designed to create scarcity and potentially increase its value over time, as opposed to fiat currencies which can be printed in unlimited quantities.
The process of mining Bitcoin involves significant energy consumption, estimated to be comparable to that of some small countries, raising concerns about its environmental impact.
Bitcoin's price volatility is influenced by various factors, including regulatory news, market sentiment, macroeconomic trends, and technological developments, leading to rapid price changes within short periods.
The trading pair of Bitcoin with Ethereum (ETH) recently reached a record low, with one Bitcoin being equivalent to approximately 49 ETH, marking the lowest since March 2020.
In December 2024, Bitcoin reached an all-time high of over $108,000, a price point that reflects the speculative nature of cryptocurrency investing and the potential for rapid price increases.
Bitcoin has become increasingly integrated into the global financial system, with some companies accepting it as payment and institutional investors adding it to their portfolios, reflecting its growing acceptance.
The Lightning Network is a second-layer solution built on top of the Bitcoin blockchain that enables faster and cheaper transactions, addressing scalability issues and making microtransactions more feasible.
Unlike traditional bank accounts, Bitcoin wallets do not require personal identification, which raises questions about privacy and anonymity in financial transactions.
The concept of "HODL," originating from a misspelled forum post, has evolved into a strategy among Bitcoin investors to hold their assets long-term rather than selling during market fluctuations.
Bitcoin's blockchain is immutable, meaning once a transaction is confirmed, it cannot be altered or deleted, providing a high level of security against fraud and double-spending.
Bitcoin operates on a proof-of-work consensus mechanism, which requires miners to expend computational power to validate transactions, contrasting with proof-of-stake systems used by other cryptocurrencies that rely on validators holding funds.
The rising interest in central bank digital currencies (CBDCs) poses both a challenge and an opportunity for Bitcoin, as governments explore digital currencies while competing with decentralized alternatives.
The Bitcoin community is diverse, with various factions advocating for different scaling solutions and governance models, which can lead to forks in the blockchain, resulting in new cryptocurrencies like Bitcoin Cash.
The concept of "digital gold" is often used to describe Bitcoin, as it shares characteristics with gold in terms of scarcity and value storage, appealing to investors seeking a hedge against inflation.
As the cryptocurrency landscape evolves, Bitcoin faces competition from thousands of alternative cryptocurrencies, each offering unique features and use cases, contributing to the dynamic nature of the digital asset market.