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What is Bitcoin?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Bitcoin is the first crypto asset, live since 2009, with a protocol-level cap of 21 million coins. It was the first system to settle transfers without an operator.
Key points
- Capped at 21 million coins
- Issuance halves about every four years
- Consensus through Proof of Work
- Settlement can take tens of minutes
Definition
A decentralised digital currency with a fixed supply, secured by Proof of Work.
Miners compete on computation, and the winner appends the next block. The sheer energy cost of that computation is what makes rewriting the ledger impractical.
New issuance halves roughly every four years — the halving. A fixed cap is often cited as a reason prices could rise with demand, but it guarantees nothing.
Watch out for
- · Send to the wrong address and it is gone
- · Fees rise when the network is congested
Frequently asked questions
Do I have to buy a whole coin?
No. Bitcoin divides into very small units, so you can buy a fraction. The smallest unit is one hundred-millionth of a bitcoin, called a satoshi.