Bitcoin is digital money that:
It’s like cash, but online—and you own it directly, like holding a $100 bill in your pocket.
No one person or company owns or controls Bitcoin.
Instead, it's run by thousands of computers worldwide (called nodes) that follow a shared rulebook (the Bitcoin protocol).
Think of it like Wikipedia—anyone can read or contribute, but changes only happen if the rules are followed.
The blockchain is like a big, public receipt book that:
Imagine writing down every dollar you ever spent in a notebook—but everyone has a copy, and no one can fake or delete a line.
Instead of a bank approving your payment, Bitcoin uses:
This process is called Proof of Work, and it prevents fraud and double spending.
Miners are rewarded with new Bitcoins—this is how new coins enter the system (but this reward halves every 4 years).
You store Bitcoin in a digital wallet, which has:
Think of it like a locker: anyone can put money in, but only you can open it—if you have the key.
Bitcoin has value because:
| Feature | Bitcoin | Traditional Money |
|---|---|---|
| Supply | Fixed (21M total) | Can be printed endlessly |
| Control | Decentralized | Controlled by governments |
| Transactions | Peer-to-peer, global | Requires banks/intermediaries |
| Verification | Blockchain + miners | Banks and clearinghouses |
| Privacy | Pseudonymous | Often tied to ID |
| Inflation Risk | Low | High (depends on policy) |
Bitcoin is internet-based money that you control, not the banks—secured by math, verified by a global network, and capped at 21 million coins.