What is bitcoin?
Who made it and why it’s worth anything.
Most people first hear about bitcoin because “one is worth tens of thousands of dollars”. Before asking how to buy it, spend ten minutes on what it is and where its value comes from.
In one line: bitcoin is a digital asset with no issuer
Bitcoin (ticker BTC) is a number recorded on a public ledger. That ledger isn’t run by any bank, company or government; thousands of computers worldwide keep and check it together. “Owning” bitcoin means the ledger shows an address holding coins, and only your private key can move them.
| Dollars / yuan | Bitcoin | |
|---|---|---|
| Who issues it | A central bank | No issuer; created by code rules |
| Supply | Set by monetary policy | Capped at 21 million, hard-coded |
| Who keeps the ledger | Banks | Nodes worldwide, publicly visible |
| Price | Relatively stable purchasing power | Set by the market, very volatile |
Who created bitcoin? Who is Satoshi Nakamoto?
On October 31, 2008, someone using the name Satoshi Nakamoto published the bitcoin white paper, “Bitcoin: A Peer-to-Peer Electronic Cash System”. The network produced its first block, the genesis block, on January 3, 2009.
Satoshi’s real identity has never been publicly confirmed; they stepped away from the project around the end of 2010. No founder and no company is exactly the point: bitcoin keeps running without anyone in charge.
- May 22, 2010: someone paid 10,000 BTC for two pizzas, now celebrated as Bitcoin Pizza Day.
- January 2024: the US approved spot bitcoin ETFs, opening the door to brokerage-account buyers.
- March 2025: a US executive order created a Strategic Bitcoin Reserve.
Why does bitcoin have value?
Bitcoin pays no interest or dividends. Its value comes from people collectively agreeing that it is scarce, hard to tamper with and sendable anywhere:
- Fixed supply: at most 21 million coins, ever. Over 95% have already been mined; the last will come around 2140.
- Slowing issuance: roughly every four years a “halving” cuts new supply in half. Since April 2024 each block pays 3.125 BTC.
- Hard to alter: rewriting the ledger would take control of most of the network’s computing power, which is enormously expensive.
- Global: with an internet connection you can send it to any address in the world in under an hour.
The flip side: its value depends entirely on market confidence. Bitcoin has fallen more than 70% within a year several times. Scarce doesn’t mean it only goes up.
How much is one bitcoin? Can I buy a fraction?
According to Fortune, bitcoin was about $83,069 on September 28, 2026, after dipping below $78,000 earlier in the month. Prices change by the second, so check a live quote.
You don’t need a whole coin. Bitcoin divides to eight decimal places, and the smallest unit is a satoshi (1 sat = 0.00000001 BTC). A few dollars on OKX buys you a small slice.
Ready to open an account? Enter code OK66688 at sign-up for 20% off every trading fee, for life.
Is bitcoin a scam?
Bitcoin itself is open-source software that has run for 17 years; it isn’t a scheme someone can walk away from. But scams using bitcoin’s name are everywhere. Learn to tell them apart:
| Bitcoin itself | Scams using bitcoin’s name |
|---|---|
| Nobody promises returns | Guaranteed daily profits |
| Traded on major exchanges | Requires an unknown app or paying an individual |
| No recruiting needed | Bigger rewards for recruiting more people |
| You can sell and withdraw any time | Withdrawals require a “fee” or “deposit” first |
The rule is simple: anyone guaranteeing profits is the problem. See what mining scams look like.
What is bitcoin used for?
- Long-term holding: some treat it as “digital gold” and keep a small share of spare money in it.
- Cross-border payments: bitcoin and stablecoins are used to send money abroad in some countries, subject to local rules.
- Learning and trading: many people buy a little first to understand exchanges and blockchains.
Legal status varies by country. Mainland China does not recognize bitcoin as money and treats crypto business activity as illegal. Follow your local law.
Bitcoin basics
FAQ.
01Is bitcoin real money?
In a few countries it has some legal recognition, but in most places it is treated as a volatile asset rather than money, and mainland China does not recognize it as currency.
02Why is bitcoin called digital gold?
Like gold, its supply is limited and gets harder to produce, and it doesn’t depend on any government. Unlike gold, its price swings far more.
03What is a bitcoin halving?
Every 210,000 blocks (about four years) the reward for new blocks is cut in half. The last one was in April 2024; the next is expected in 2028.
04Where should I keep bitcoin after buying?
For beginners, a major exchange account with an authenticator app is simplest. With larger amounts you can move to a self-custody wallet, but if you lose the keys the coins are gone for good.
05Can bitcoin be hacked?
The network itself has never been rewritten, but exchanges, wallets and people get hacked or scammed. Most losses come from stolen passwords, phishing and fake apps.
06How many bitcoins are left to mine?
Fewer than a million. More than 95% of the 21 million supply has already been mined, and new supply shrinks with each halving.
Finished this chapter?
Read the next one.
Understand bitcoin and blockchain first, then the types of coins and mining, then how money is made, cashed out and kept safe. Each chapter takes about ten minutes.
What is blockchain?
Blockchain, decentralization, public chains, smart contracts, gas fees and wallet addresses, explained with a shared ledger.
Chapter 3 · Digital yuan vs bitcoinTypes of cryptocurrency
Crypto vs digital currency vs China’s digital yuan, plus majors, altcoins, tokens, NFTs and DeFi.
Chapter 4 · Is Pi Network legit?What is crypto mining?
What miners actually do, whether you can mine at home, where it’s banned, and the truth about phone mining and Pi Network.
Chapter 5 · Whose money are you making?Can you make money with crypto?
Where crypto profits come from, why most beginners lose, and how to take part without getting hurt.
Chapter 6 · Bank account frozen after cryptoHow to cash out USDT
Selling USDT for local currency via P2P, why bank accounts get frozen, and what to do if yours is.
Chapter 7 · Exchange paused withdrawalsWhat if a crypto exchange goes bust?
What CoinEx’s shutdown and the Bitget hack mean for ordinary users, and how to judge an exchange.
Learn first, then start small, and enter OK66688 when you sign up.
Get to know buying and selling with a small amount. Every trade costs 20% less, so practice is cheaper.