Bitcoin – what is it?

The word Bitcoin combines “bit” (a unit of digital information) and “coin” (money). Simply put, it’s online cash.

Origin

Bitcoin was introduced in 2008 by a person or group using the Japanese name Satoshi Nakamoto. Whether Satoshi is one individual or an entire organization remains unknown.

How Bitcoin Appeared

Anyone with a powerful computer can participate in the creation of new bitcoins through a process called mining: specialized software solves cryptographic puzzles and adds new blocks to the chain.

Divisibility

Just like a dollar is divided into 100 cents, one bitcoin is divided into 100 million satoshis, the smallest unit on the network.

Main Advantages

• Anonymity. Balances and transactions are publicly visible, but wallet addresses are not linked to real-world identities.
• Zero (or optional) fees. Unlike banks or e-wallets, Bitcoin lets you send value worldwide without mandatory payments.
• Money without borders. No government prints or controls BTC, so capital controls and local rules can’t directly manipulate its supply.
• Legal possession. Criminal misuse exists—just as with dollars or euros—but owning or spending bitcoins is not a crime in itself.

Scarcity and Price

There will only ever be 21 million bitcoins; the last one is projected to be mined around 2140. This hard-coded scarcity is one reason many expect long-term price increases.