What is Bitcoin?

What Is Bitcoin?

Bitcoin (BTC) is the world's first and largest cryptocurrency by market cap. It was introduced in 2009 in a whitepaper by a person or group using the name Satoshi Nakamoto. Bitcoin runs on a decentralized peer-to-peer network and uses a public ledger called the blockchain to record every transaction.

How It Works

Bitcoin has no central bank or company in charge. Instead, a global network of computers (nodes) maintains the blockchain. New transactions are grouped into blocks, and miners compete to add blocks by solving cryptographic puzzles (proof of work). Once a block is added, the transactions inside it are considered confirmed. The system is designed so that no single party can alter past records or print unlimited Bitcoin.

Key Properties

Bitcoin has a fixed maximum supply of 21 million coins. New coins are created only through mining, and the rate of new supply decreases over time (halving events). This scarcity is one reason many people compare it to "digital gold." You can send Bitcoin to anyone with a wallet address, across borders, without needing a bank.

What Can You Do With Bitcoin?

People use Bitcoin as an investment, a store of value, or a means of payment where it is accepted. In India, you can buy and sell Bitcoin on regulated platforms using INR. Gains from selling or exchanging Bitcoin are taxable. You can hold Bitcoin in an exchange wallet or move it to your own software or hardware wallet for more control and security.