Bitcoin is a form of digital money that lets people send value to each other anywhere in the world without a bank in the middle. It was launched in 2009 by a person or group using the name Satoshi Nakamoto, and it is still the largest cryptocurrency by market value.
How Bitcoin works
Every Bitcoin transaction is recorded on a public ledger called the blockchain. Thousands of computers around the world hold a copy of this ledger and agree on its contents, which makes the records extremely hard to fake or change. When you send Bitcoin, your wallet signs the payment with a private key — a secret code that proves the coins are yours.
Why only 21 million?
Bitcoin’s code limits the total supply to 21 million coins. New coins are created as a reward for “miners” — computers that compete to secure the network — but that reward halves roughly every four years in an event called the halving. This built-in scarcity is why supporters often call Bitcoin “digital gold”.
What gives Bitcoin value?
Like gold or any currency, Bitcoin has value because people trust it and want to hold it. Its price is set purely by supply and demand on exchanges, which is why it can move several percent in a single day.
The risks beginners must know
- Volatility: the price can fall sharply and stay down for long periods.
- No refunds: Bitcoin payments cannot be reversed, so sending to a wrong address means the money is gone.
- Self-custody risk: if you lose your private key or recovery phrase, nobody can restore your coins.
- Scams: anyone promising guaranteed Bitcoin profits is lying — that is the oldest scam in crypto.
Bitcoin can be a powerful technology and a risky asset at the same time. Start small, learn how wallets work, and never buy with money you cannot afford to lose.
