What Is Bitcoin? A Beginner’s Guide

Bitcoin is a digital currency that lets people send value directly to one another over the internet, without a bank or payment company in the middle. It launched in 2009, created by the pseudonymous Satoshi Nakamoto, and remains the largest and most recognised cryptocurrency.

How it works

Bitcoin runs on a blockchain — a public ledger maintained by thousands of computers around the world. Transactions are grouped into blocks and secured through proof-of-work mining, which makes the record extremely difficult to alter.

Why it matters

Only 21 million bitcoin will ever exist, and new supply is cut in half roughly every four years in an event called the halving. This fixed, predictable issuance is the foundation of Bitcoin’s “digital gold” thesis.

Bitcoin is volatile and is not a guaranteed investment. If you buy, store it securely and never invest more than you can afford to lose.