⚠️ Note: This guide is for educational purposes only and does not constitute financial advice. Bitcoin is a high-risk asset. Only invest what you can afford to lose.
Introduction: The Currency Nobody Controls
Bitcoin (abbreviated BTC) is a decentralised digital currency created in 2009. Unlike the euro or the dollar — issued and controlled by central banks — Bitcoin has no central authority: no bank, no government, no company can print it, block it, or seize it.
It is the world's first peer-to-peer electronic payment system: two people can transfer value directly, without intermediaries, anywhere in the world, in a few minutes, 24 hours a day, 7 days a week.
Since 2009, Bitcoin has gone from being worth a few cents to over $100,000. But the real revolution is not the price — it is the concept: for the first time in human history, there exists a form of money that is mathematically guaranteed, immune to censorship and arbitrary devaluation.
1. Who Invented Bitcoin?
On 31 October 2008, at the height of the global financial crisis, a mysterious individual (or group) using the pseudonym Satoshi Nakamoto published a 9-page document titled "Bitcoin: A Peer-to-Peer Electronic Cash System".
The whitepaper described in detail a digital money system that solved the so-called "double-spend problem": how to ensure that a person cannot spend the same digital coin twice, without needing a bank to act as arbiter.
On 3 January 2009, Satoshi launched the Bitcoin network and mined the first block (called the "Genesis Block"), embedding a message in the code: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" — a clear reference to the failure of the traditional banking system.
In 2010, Satoshi quietly withdrew, leaving the project to the open-source community. His true identity remains one of the most fascinating mysteries of modern history. It is estimated that Satoshi holds approximately 1 million BTC — never moved.
2. How the Blockchain Works
The heart of Bitcoin is the blockchain (literally "chain of blocks"): a public and immutable ledger where all transactions ever made are recorded.
Imagine a giant distributed accounting ledger spread across tens of thousands of computers around the world. Approximately every 10 minutes, a new "block" containing all recent transactions is added. Each block is cryptographically linked to the previous one, forming an unbroken chain from 2009 to the present day.
The Key Properties of the Blockchain
- Decentralised: No central server. The ledger exists on thousands of nodes worldwide. To "shut it down" you would need to shut down the global internet.
- Public: Anyone can download and read the entire blockchain. Every transaction is verifiable by anyone.
- Immutable: Once written, a block cannot be modified without rewriting all subsequent blocks — computationally impossible with the current hashing power of the network.
- Transparent: You can see every transaction that has ever taken place, even if you do not know the identity behind each address (pseudonymous, not anonymous).
3. Mining: How New Bitcoins Are Created
New Bitcoins are created through a process called mining. Miners are specialised computers that compete to solve complex mathematical problems. The first to solve the problem earns the right to add the next block to the blockchain and receives a Bitcoin reward (block reward) in exchange.
This mechanism serves two fundamental purposes:
- Network security: To modify the blockchain, an attacker would need to control more than 51% of the global computing power — economically impossible today.
- Controlled issuance: New BTC enters circulation only through mining, at a rate predetermined by the code.
The Halving: Programmed Scarcity
Every 210,000 blocks (approximately 4 years), the miner reward is automatically halved — this event is called the halving. The historical sequence:
- 2009: 50 BTC per block
- 2012: 25 BTC per block
- 2016: 12.5 BTC per block
- 2020: 6.25 BTC per block
- 2024: 3.125 BTC per block
The total supply of Bitcoin is limited to 21 million — no more will ever exist. Of these, approximately 19.8 million have already been mined. The last will be mined around 2140. This programmed scarcity is the foundation of the "digital gold" thesis. → Learn more: what is the Bitcoin Halving and why it impacts the price.
4. Bitcoin vs Traditional Money
To understand why Bitcoin is revolutionary, it is useful to compare it with the current monetary system:
Euro/Dollar: Issued by central banks, unlimited supply (the ECB can print as many euros as it wants), can be frozen by the government, requires banking intermediaries for every transaction, does not work on weekends, international transactions take days.
Bitcoin: No central authority, fixed supply at 21 million, impossible to confiscate if properly self-custodied, direct peer-to-peer transactions, operates 24/7/365, international transactions in minutes. For instant, low-cost payments there is also the Lightning Network — Bitcoin's layer 2.
5. Bitcoin vs Altcoins: What is the Difference?
Bitcoin is the original prototype — the first cryptocurrency and the one with the largest market capitalisation (over 50% of the entire crypto market). All cryptocurrencies created after Bitcoin are called altcoins (alternative coins).
The main altcoins include Ethereum (ETH), Solana (SOL), Binance Coin (BNB), Cardano (ADA), and thousands of others. Each project has different characteristics:
- Ethereum: Platform for smart contracts and decentralised applications (DeFi, NFT)
- Solana: High-speed blockchain (65,000 transactions/sec)
- Stablecoins (USDT, USDC): Cryptocurrencies whose value is pegged to the dollar — used to avoid volatility
Bitcoin stands out for maximum decentralisation, ultra-tested security (no successful hack in 15 years) and absolute scarcity. For these reasons, many investors consider it "digital gold" — a store of value rather than a speculative instrument.
6. Why Does Bitcoin Have Value?
A legitimate question. Bitcoin is not physically tangible, is not guaranteed by any government, and generates no dividends. So why is it worth over $100,000?
Bitcoin's value derives from a combination of factors:
- Scarcity: Only 21 million will ever exist — less than all the gold in the world
- Utility: Enables censorship-free transfer of value anywhere in the world
- Security: The Bitcoin network is the most secure ever created by humanity
- Growing adoption: ETFs approved by the SEC, Morgan Stanley MSBT (Apr 2026), Tesla, MicroStrategy, El Salvador as legal tender
- Network effect: The more people use it, the more its value as a network increases
- Store of value: Reserve of value against monetary inflation
7. The Risks of Bitcoin
Bitcoin is a high-risk investment. Before buying any, it is essential to understand the risks:
- Extreme volatility: BTC has lost 70–80% of its value in past bear markets
- Regulatory risk: Governments could restrict or ban crypto (already happened in China)
- Technological risk: Software bugs, quantum computing in the future
- Custody risk: If you lose your seed phrase, you lose your BTC forever — nobody can help you
- Scams: The sector is full of fraudulent projects — the original Bitcoin is safe, but scams abound
8. How Do You Buy Bitcoin?
The easiest way to buy Bitcoin is through a regulated exchange. The main options are:
- Binance — the largest in the world, minimum fees (0.1%)
- Coinbase — the simplest for beginners, with an intuitive app
- Kraken — never hacked in over 10 years, SOC 2 certified + Proof of Reserves, fees 0.25%/0.40%. The ideal choice for those who put security first. Open account on Kraken →
- Bybit, KuCoin — good alternatives with a wide selection of altcoins
Ready to Buy Your First Bitcoin?
Binance is the world's largest exchange: low fees, simple app, support available
Get Started with Binance →9. Frequently Asked Questions about Bitcoin
Can I buy a fraction of Bitcoin?
Yes! Bitcoin is divisible to 8 decimal places. The smallest unit is called a satoshi (1 BTC = 100,000,000 satoshis). You can buy for as little as €10.
Is Bitcoin legal?
Yes, Bitcoin is completely legal in most countries. Under MiCA regulation, the European Union has established a clear legal framework for crypto assets. Always check the specific regulations in your country.
Can Bitcoin go to zero?
In theory yes, like any asset. In practice, after 15 years of existence, a network with millions of users, billions of dollars of institutional investment and a mature ecosystem, a zero scenario is considered extremely unlikely — but not impossible.
How is Bitcoin taxed?
Taxation varies by country. In most European countries, crypto gains are subject to capital gains tax. Consult a tax professional specialised in crypto for your specific situation.