KEY TAKEAWAYS
Bitcoin (BTC) is a form of electronic cash that can be transacted between peers on the Bitcoin network.
Bitcoin can be stored in wallets that recognize its distributed ledger system.
The Bitcoin whitepaper was released in 2008 by Satoshi Nakamoto and the first Bitcoin block was mined in 2009.
Bitcoin (BTC) can be traded on digital asset markets, held as a store of value, or used in accepted commercial setups as a means of payment.
Bitcoin is the most valuable cryptocurrency in terms of total market valuation.
What is Bitcoin and How Does it Work?
A tradable digital asset, an economic and technological revolution, a virtual store of value; you could base your definition of Bitcoin on any one of these or a combination and still be accurate.
Bitcoin is an electronic cash technology powered by a decentralized authority network that records the history of transactions on a distributed and immutable ledger. This network is the Bitcoin core blockchain, running on blockchain technology. The Bitcoin blockchain stores records of transactions performed using the bitcoin cryptocurrency, and these records are impossible to modify once they are stored in the blockchain.
The bitcoin currency (to be referred to as just 'bitcoin' in subsequent parts of this article) is a cryptographic token that operates on the Bitcoin blockchain.
Bitcoin can be transferred across every account on the Bitcoin network regardless of location and time. Transactions on the network don’t require third-party permissions; these transactions also can't be intersected by an external party or modified by anyone once they are executed, rendering bitcoin transactions permissionless, censorship-resistant, and immutable.
Thanks to this system, bitcoin is well-adapted for transactions between peers across borders and in a macro-financial setup. Over 200 thousand transactions are recorded on the bitcoin network daily, each costing less than $0.50 on average and cutting across every nation of the world. However, like all cryptocurrencies, bitcoin is subject to volatile swings in value due to demand and supply conditions
