What Is Bitcoin?

Bitcoin (BTC) is a digital asset that allows people to transfer value directly over the internet without relying on a bank to process every transaction.

It launched in 2009 and operates on a decentralized network of computers around the world.

Unlike dollars or euros, Bitcoin is not issued by a central bank.

How Does Bitcoin Work?

Bitcoin transactions are recorded on a public blockchain.

Think of the blockchain as a shared digital record that thousands of computers keep synchronized.

When someone sends BTC:

• The transaction is broadcast to the Bitcoin network.
• The network checks that the sender has the Bitcoin available.
• Miners compete to add groups of valid transactions to the blockchain.
• Once confirmed, the transaction becomes part of Bitcoin's permanent record.

Bitcoin uses a system called proof of work to secure this process.

Why Does Bitcoin Have Value?

Bitcoin has a limited maximum supply of 21 million BTC.

Its price is determined by buyers and sellers rather than by a government.

People use Bitcoin for different reasons, including:

• transferring value
• holding a scarce digital asset
• portfolio exposure to cryptocurrency
• sending funds internationally
• accessing a decentralized payment network

However, Bitcoin's price can move sharply in either direction.

Is Bitcoin the Same as Blockchain?

No.

Bitcoin is an asset and payment network.

Blockchain is the underlying record-keeping technology.

Bitcoin was the first major application to demonstrate that a decentralized blockchain could operate at global scale. For a deeper explanation, see how blockchain works.

Follow our latest Bitcoin market coverage to see how BTC behaves in real market conditions.