Bitcoin (BTC)
Bitcoin is the first and best-known cryptocurrency. It runs on a blockchain with no central operator, and its supply is capped at 21 million coins.
How it works
Bitcoin was launched in January 2009 by a person or group using the name Satoshi Nakamoto. Thousands of computers (nodes) around the world run the network, and there is no owner who could freeze an account or print extra coins.
Miners add new blocks of transactions about every 10 minutes and earn a reward for it. Roughly every four years the reward is cut in half (the halving): after the April 2024 halving it is 3.125 BTC per block. That is why new supply slows down and approaches the 21 million limit.
One BTC splits into 100 million units called satoshis, so you never need to buy a whole coin. Access to coins comes from a private key: whoever holds it controls the bitcoin.
You can send bitcoin directly to another person, without a bank. The transfer lands in a block in about 10 minutes, or longer when the network is busy, and is usually treated as final after a few confirmations.
You have $50 and 1 BTC costs $100,000. You can buy 0.0005 BTC, which is 50,000 satoshis.
Beginners often think bitcoin is anonymous and that coins "sit on the exchange". Every transfer is visible on the public blockchain, and on an exchange you hold only the promise of the exchange. Know where your keys are and do not leave on an exchange what you do not need for trading. And do not go all in on emotion: BTC has already dropped 50% or more several times.
Questions and answers
What is bitcoin in simple terms?
It is digital money that no central party controls. You can hold and send it without a bank, and there will never be more than 21 million coins.
Can I buy less than one bitcoin?
Yes. BTC divides to eight decimal places: the smallest unit, 0.00000001 BTC, is called a satoshi.
Who created bitcoin?
It was described and launched by someone using the name Satoshi Nakamoto: the paper came out in 2008 and the network started in January 2009. Who is behind the name is not known for sure.
Related terms
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Updated: 2026-10-19