What is Bitcoin?
Bitcoin (BTC) is the first and best-known cryptocurrency, a digital money that moves on a decentralized network without banks or middlemen. Its supply is capped at 21 million coins. This guide covers the basics in plain language.
What is Bitcoin?
Bitcoin is a decentralized digital currency that launched in 2009. Its creator is known by the pseudonym Satoshi Nakamoto.
Every transaction is recorded in a public ledger called the blockchain, and thousands of computers around the world keep a copy. No company or government controls it.
The 21 million cap
The protocol rules say no more than 21 million bitcoin will ever be created. That is why some people compare Bitcoin to digital gold: its supply is limited and known in advance.
Each bitcoin divides into eight decimal places, and the smallest unit is called a satoshi, so you do not need to buy a whole coin.
Mining and proof of work
Bitcoin uses proof of work. Miners compete with heavy computation to add the next block of transactions and earn a reward for it.
That competition costs energy, which makes rewriting transaction history extremely hard. Bitcoin's energy use is a serious topic of debate and opinions differ.
On average Bitcoin produces a block about every ten minutes. Confirmation can therefore take several minutes or longer depending on congestion and fee, and for large amounts people usually wait for a few block confirmations.
What is the halving?
The halving cuts the miners' block reward roughly in half every 210,000 blocks, which is roughly every four years. The most recent one happened in April 2024 at block 840,000.
It slows the creation of new bitcoin and moves supply closer to the 21 million cap. Its effect on the price is not certain, and nobody can forecast it.
Bitcoin wallets and addresses
Bitcoin is not stored inside a wallet. The wallet holds your private keys, which let you spend your coins on the blockchain. Whoever has the keys or the recovery phrase controls the funds.
In Waletifi you can hold and send Bitcoin in a non-custodial wallet. The keys stay on your phone, transactions are signed on the phone and the network fee is shown before you confirm.
Common beginner mistakes
Most beginner losses come from simple errors rather than from Bitcoin itself. Keep these in mind:
- Do not photograph your recovery phrase or store it in a messenger or cloud
- Check the whole Bitcoin address before sending; transactions cannot be reversed
- Treat any promise of guaranteed profit or doubled money as a scam
- Send a small test transaction first for large amounts
Volatility and the store-of-value debate
Bitcoin's price can move a lot in a short time. Some see it as a volatile asset; others see it as a long-term store of value.
Both views have supporters and this guide takes no side. If you decide to buy, use only money you can afford to see fluctuate, and check addresses carefully before sending.
