Bitcoin (BTC)

What is Bitcoin?

Bitcoin (BTC) is the first decentralized cryptocurrency, operating on a peer-to-peer network. It was launched in 2009 by its pseudonymous creator, Satoshi Nakamoto, who detailed the system in a whitepaper. The network uses a proof-of-work consensus mechanism to validate transactions and secure the blockchain without a central authority. This process, known as mining, ensures that all transactions are recorded accurately on a public ledger. Bitcoin's primary functions include serving as a store of value and enabling peer-to-peer payments. As a foundational layer-1 blockchain, it provides a settlement layer for transactions globally, establishing a new model for digital ownership.

How does Bitcoin work?

Bitcoin operates on a proof-of-work consensus mechanism to maintain its integrity and security. Miners on the network compete to solve a complex mathematical puzzle to validate a new block of transactions. The first miner to find the correct solution broadcasts it to the network, adding the block to the blockchain and receiving a reward in BTC.

The network consists of global participants called miners and nodes who maintain the distributed ledger. Miners use specialized computational hardware to process transactions and secure the network against fraudulent activity. Full nodes, on the other hand, store a complete copy of the blockchain, independently verifying all transactions and blocks against the network's established rules.

When a user sends BTC, the transaction is broadcast to the network and collected by miners into a memory pool. Miners then select transactions from this pool to include in a new block they are attempting to solve. Once a block is successfully mined and added to the chain, the transactions contained within it are considered confirmed and immutable.

Bitcoin use cases

Bitcoin tokenomics

Bitcoin's tokenomics are defined by a fixed maximum supply of 21 million BTC, a rule encoded into its protocol. This finite supply model means that no more than 21 million coins can ever be created. New bitcoins are introduced into the circulating supply as rewards for miners who successfully add new blocks to the blockchain through the proof-of-work consensus mechanism. The current circulating supply is 20,046,290 BTC. The rate at which new coins are generated is designed to decrease over time through a process known as the halving, which cuts the mining reward approximately every four years, until the maximum supply is reached.

Bitcoin price history & milestones

Since its launch in 2009, the price of Bitcoin has experienced significant changes, reflecting its journey from an obscure digital project to a widely recognized asset. The market value of BTC has been recorded over a wide range throughout its history. Its all-time low was recorded at $0.04865 on July 14, 2010, during its earliest days of trading. In contrast, Bitcoin reached its all-time high price of $126,198.07 on October 6, 2025. This history of price movement has contributed to its position in the broader digital asset market. Based on market capitalization, Bitcoin holds the rank of 1 among cryptocurrencies.