What is Bitcoin
Bitcoin is the first decentralized cryptocurrency that allows people to send and receive money over the internet without banks or intermediaries. Although earlier digital currency concepts existed (such as BitGold), Bitcoin became the first widely adopted cryptocurrency and created the modern crypto economy.
Bitcoin operates on top of blockchain technology.
How Bitcoin works
All Bitcoin transactions are recorded in the blockchain. Nodes in the network verify transactions and add them to new blocks.
The network is secured by the Proof-of-Work consensus mechanism.
Key features of Bitcoin
- decentralization
- limited supply
- transparent transactions
The maximum supply of Bitcoin is limited to 21 million coins. As of early 2026, roughly 20 million bitcoins have already been mined.
Related terms
FAQ
Who created Bitcoin?
Bitcoin was created by a person or group of people using the pseudonym Satoshi Nakamoto.
Can you send a fraction of Bitcoin?
Yes. Bitcoin can be divided into smaller units called satoshis.
What happens when all bitcoins are mined?
No new bitcoins will be created, and miners will earn rewards only from transaction fees.