What Is Bitcoin?
Bitcoin is a groundbreaking decentralized digital currency that enables peer-to-peer transactions across the internet without the need for a central authority like a bank or government. It is both a currency and a technology protocol.
Bitcoin (Capital 'B')
Refers to the entire network, the technology, and the concept. It's the protocol that runs the global, decentralized ledger known as the blockchain.
bitcoin (Lowercase 'b')
Refers to the unit of currency itself (with the ticker BTC) that is sent and received across the Bitcoin network.
How Does It Work?
Decentralized & Peer-to-Peer
Unlike traditional currencies, there is no central entity controlling Bitcoin. Instead, it is maintained by a distributed network of computers (nodes) around the world. Transactions are sent directly between users.
Limited Supply
The Bitcoin protocol dictates that there will only ever be 21 million bitcoins created. This fixed supply makes it a deflationary asset, meaning its purchasing power can potentially increase over time if demand grows.
Every transaction is recorded on a public ledger called the blockchain, which is secured through a process known as mining. This creates a system that is transparent, censorship-resistant, and immutable.