Bitcoin Basics

Bitcoin is a decentralized digital asset secured by a global network of computers. It uses cryptography to transfer value peer-to-peer without banks or governments acting as intermediaries.

Bitcoin introduced the first fixed-supply, censorship-resistant monetary system that anyone with internet access can participate in. Its 21 million coin cap makes it structurally different from currencies that can be issued at will.

Every transaction broadcasts to the network, gets bundled by miners into a block, and the block is permanently chained to all previous blocks. Miners are rewarded for securing the network — that is what creates new bitcoin.

Bitcoin is pseudonymous, not anonymous: every transaction is public forever. It is also not a guaranteed return — price has historically been highly volatile, with multiple drawdowns of more than 70%.

Volatility, regulatory changes, custody mistakes (lost keys = lost funds), and concentration in exchanges. Treat Bitcoin as an educational subject and high-risk asset, not a savings vehicle.