Bitcoin

Bitcoin (BTC) is the first decentralized cryptocurrency, launched in 2009 by the pseudonymous Satoshi Nakamoto. It functions as peer-to-peer electronic cash and, increasingly, as a scarce digital reserve asset often described as 'digital gold.' Ranked first by market capitalization, BTC settles value directly between users on a public blockchain with no bank, company or government in the middle.

What is Bitcoin?

Bitcoin is an open monetary network and the asset that circulates on it. Its breakthrough was solving the double-spending problem without a trusted intermediary, producing the first provably scarce digital object. Anyone can send, receive and hold BTC permissionlessly, and no single party can freeze balances or reverse confirmed transactions. That censorship resistance, combined with a hard supply limit, is the core of Bitcoin's value proposition.

How does Bitcoin work?

Transactions are broadcast to a global network of nodes and grouped into blocks roughly every ten minutes. Miners compete using the SHA-256 Proof of Work algorithm, expending real computing power to add each block; the winner earns newly issued BTC plus fees. This energy cost is what makes rewriting history economically impractical, securing the ledger through incentives rather than authority.

Bitcoin tokenomics and supply

Bitcoin's issuance is fixed in code. The supply is capped at 21 million coins, and roughly 20.05 million are already in circulation. Every four years a 'halving' cuts the block reward in half, steadily slowing new issuance until the last coin is mined near the year 2140. This predictable, decreasing emission is why BTC is often framed as a disinflationary, deflationary-leaning asset.

• Circulating supply: about 20.05 million BTC
• Maximum supply: 21 million BTC, hard-coded
• Issuance halves roughly every four years
• All-time high near $126,080; all-time low around $67.81

What is Bitcoin used for?

BTC is used for savings, remittances and settlement, and it serves as the crypto market's primary reserve and pricing benchmark. Adoption has widened through spot Bitcoin ETFs approved in January 2024 and corporate treasuries holding BTC as a hedge against currency debasement. Newer experiments like Ordinals inscriptions, BRC-20 tokens and emerging BTCFi applications are extending activity onto the base chain, though they remain early.

Where to buy Bitcoin

BTC trades on nearly every major venue. Our best crypto exchanges ranking compares platforms on fees, liquidity and security, and for self-custody our best crypto wallets guide covers hardware and software options that let you hold your own keys rather than trusting a third party.

Is Bitcoin a good investment?

Bitcoin has the longest track record, deepest liquidity and clearest supply schedule in crypto, but it remains highly volatile and its price can fall sharply and stay down for long stretches. Regulation, macro conditions and market sentiment all move it. This is not financial advice; size any exposure to risk you can afford and understand the asset before buying.