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Bitcoin

Bitcoin, the first cryptocurrency, launched in 2009. It’s digital money (crypto) that lets you send value directly to someone else without a bank. Bitcoin’s ticker symbol is BTC.

Last updated • 2 min read
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What is Bitcoin?

Bitcoin is a cryptocurrency: money that exists only in digital form. It isn’t managed by a single bank, company, or government.

Bitcoin works through a blockchain. This is a public digital ledger that records all transactions. When someone sends Bitcoin, computers around the world check whether the payment is valid. Approved transactions are then grouped into blocks and added to the blockchain. This creates a record of all Bitcoin transactions that anyone can check and that can’t easily be changed afterward.

A maximum of 21 million Bitcoin can ever exist. People use Bitcoin to send value, but some also buy it as an investment. Its price can rise or fall sharply.

An example of Bitcoin

Say you want to send Bitcoin to a friend in another country. In your crypto wallet, you enter their Bitcoin address and the amount. Then you send the payment to the Bitcoin network.

The network checks the payment and records it on the blockchain. You don’t need a bank as an intermediary. Be sure to check the address carefully: a Bitcoin transaction usually can’t be reversed once it’s sent.

Why is Bitcoin important in crypto?

Bitcoin is the first and largest cryptocurrency by market capitalization, so it plays an important role in the crypto market. Developments related to Bitcoin often affect the rest of the market. When the price of Bitcoin rises or falls sharply, other cryptocurrencies often move along with it.

That’s why Bitcoin gets a lot of attention in crypto news. News about major investments, new regulations, mining, or changes to the Bitcoin network can affect investor confidence and Bitcoin’s price. This can also have an impact on other cryptocurrencies.

The maximum supply of 21 million Bitcoin is also important. Because of this scarcity, Bitcoin is sometimes called digital gold. Still, that doesn’t mean its price will automatically rise. The price depends on supply and demand and can fluctuate sharply.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.