What Is Bitcoin?
Bitcoin (BTC) is a decentralized digital currency that operates on a peer-to-peer network, enabling users to transact without intermediaries like banks.
Key features:
- Decentralized: Operated by a global network of nodes.
- Transparent: All transactions are recorded on the public Bitcoin blockchain.
- Secure: Uses cryptographic verification to prevent fraud.
👉 Learn more about Bitcoin wallets
Bitcoin History and Key Milestones
When Was Bitcoin Invented?
- Whitepaper released: October 31, 2008.
- Network launched: January 3, 2009 (Genesis block mined).
Bitcoin Mining Explained
Mining involves solving complex equations to:
- Validate transactions.
- Earn block rewards (currently 6.25 BTC per block).
- Secure the network.
Hashrate: A measure of computational power (e.g., 200 EH/s = 200 quintillion guesses per second). Higher hashrate = better security.
Bitcoin Economics
Bitcoin Halving
- Occurs every ~4 years.
- Next halving: May 2024 (reward drops to 3.125 BTC).
- Final halving: 2140 (all 21 million BTC mined).
Is Bitcoin Legal?
- Legal: USA, EU, El Salvador (legal tender).
- Restricted: Saudi Arabia (institutional bans).
- Illegal: China, Iraq, Qatar.
How to Buy and Store Bitcoin
Buying Bitcoin
- Exchanges: Coinbase, Binance.
- Payment Apps: PayPal, Cash App.
Storage Best Practices
- Hardware wallets (e.g., Ledger, Trezor) for offline security.
- Avoid hot wallets for large holdings.
- Backup seed phrases on paper or steel.
Bitcoin Units: Satoshis
- 1 Satoshi = 0.00000001 BTC.
- Useful for microtransactions (e.g., 3,570,000 sats = 0.0357 BTC).
FAQs
1. Is Bitcoin safe?
Yes, but protect private keys and avoid scams.
2. Can Bitcoin be hacked?
The network is secure, but individual wallets can be compromised.
3. What’s the smallest Bitcoin unit?
Satoshis (1 sat = 0.00000001 BTC).
4. How do I convert BTC to USD?
Use our Bitcoin calculator for real-time rates.