Bitcoin (BTC) is the world's first cryptocurrency, launched in 2009 by a creator whose identity remains unknown. It solved a problem that had until then gone unanswered: how to transfer money over the internet without relying on centralised intermediaries such as banks or financial institutions.
Over the years, Bitcoin moved beyond being a niche project and gained global popularity, largely because of its dramatic price gains. In August 2025, for example, a single Bitcoin was worth more than 99,720 EUR.
That rise in value has even brought round traditional investors — once fairly sceptical of the revolution Bitcoin proposed — to invest heavily in the asset. Today it is seen less as a means of payment and more as a kind of "digital gold", a store of value.
That is because its code sets a hard cap of 21 million Bitcoin units in existence. In a world where central banks can print money at will, Bitcoin stands out precisely for its fixed, unchangeable scarcity.
Below is more on Bitcoin's origins, how it emerged, how it works, and other explanations of the world's leading and first cryptocurrency.
What is Bitcoin?
Bitcoin is a decentralised digital currency that lets people transfer money over the internet directly, without needing intermediaries such as banks. All transactions are recorded on a public network called the blockchain.
Unlike so-called fiat currencies, such as the dollar or the euro, which are issued by a central bank, Bitcoin is decentralised. This means no single person or entity controls the asset, let alone a government.
Bitcoin's transaction history is stored permanently on the blockchain, which acts as a digital ledger recording every operation carried out with the cryptocurrency, including amounts and the wallet addresses involved in each transfer. The blockchain is an immutable, open system, which makes it secure and transparent.
Who created Bitcoin?
It is not known exactly who created Bitcoin. There is only a pseudonym, Satoshi Nakamoto, credited with the invention, but it is not known whether this refers to a single person or a group.
Read also: Who is Satoshi Nakamoto, Bitcoin's mysterious creator?
Nakamoto is the name attached to the publication of Bitcoin's whitepaper, the document that lays out the reasoning and mechanics behind the cryptocurrency. The idea was to create a currency independent of any central authority, transferable electronically, with much lower transaction fees than the payment systems that existed at the time.
How are new bitcoins created?
While fiat money must be printed by a central bank or government body, Bitcoin is created through the mining process, in which the community of users itself helps secure the network and validate transactions. To do this, a user must "lend" computing power to the network and, in return, is rewarded with newly generated bitcoin.
In mining, computers scattered around the world compete to solve mathematical problems, a process known as Proof of Work.
The first miner to solve the mathematical problem closes a block on the network, in which confirmed bitcoin transactions are recorded. As a result, roughly every 10 minutes a new block is added to the Bitcoin network. These blocks are linked to one another, forming a continuous record of transactions — which is where the name "blockchain" comes from.
When a block is completed, the miner responsible for it receives newly created bitcoin as a reward. In 2009, when the cryptocurrency launched, 50 BTC was paid per block, but that reward is halved every 210,000 blocks, or roughly every four years.
As a result, the reward that started at 50 BTC fell to 25 BTC in 2012, 12.5 BTC in 2016, 6.25 BTC in 2020 and 3.125 BTC in April 2024, which is the reward currently paid for each Bitcoin block. This process of reducing the reward is known as the halving.
Besides this model for creating new units, Satoshi also set a hard cap of 21 million bitcoin that can ever be mined. At the current pace, and accounting for future halvings, the last Bitcoin is expected to be mined around the year 2140.
What is Bitcoin used for?
Bitcoin was originally created as a means of payment — its first and most fundamental use case. Because of this, Bitcoin can be used as money, allowing purchases both online and in the physical world. Today, crypto cards already exist that automatically convert a BTC balance into local currency at the moment of transaction, making everyday use of the asset easier.
However, Bitcoin's rise in value has made many people reluctant to use it as everyday money. As a result, Bitcoin has come to be used mainly as an investment. Because it trades on open markets and has a fixed issuance cap, its price tends to rise as demand increases.
For this reason, Bitcoin has become a store of value, earning the nickname "digital gold". Because it is scarce — never more than 21 million units will ever exist — and free from interference by banks and governments, its supporters believe it helps protect users' holdings against inflation and other macroeconomic effects.
Today, it is possible to buy Bitcoin directly through exchanges such as Mercado Bitcoin, or through investment funds and ETFs traded on stock exchanges that offer exposure to the cryptocurrency's price.
Finally, it also serves as a store of value for people who hold the asset in wallets to shield themselves from economic shocks, government intervention and inflation, preserving the purchasing power of their holdings.