What is Bitcoin ?

Bitcoin: understand the first cryptocurrency simply

Bitcoin. This word keeps popping up for more than a decade, yet many people still don't know what it really means. Is it a currency? An investment? A technology? Or all of the above? In this article, Coinstancy explains in simple terms what Bitcoin is, how it works, and why it’s creating so much buzz.

A currency like no other

Bitcoin is a digital currency launched in 2009 by an unknown person or group under the name Satoshi Nakamoto. Unlike the euro or the dollar, Bitcoin is not issued by any central bank. It runs without any authority thanks to a technology called the blockchain.

Blockchain: the core of the system

The blockchain is a public and secure ledger where all Bitcoin transactions are recorded. Every time someone sends or receives Bitcoin, the information is added to a “block.” These blocks are linked together, forming a chain—hence the name blockchain.

This system makes transactions transparent, traceable, and hard to tamper with. That’s why many view Bitcoin as one of the most important innovations since the internet.

A limited number of bitcoins

Another key point: there will never be more than 21 million bitcoins. This limit was set from the start. It makes Bitcoin a scarce asset, similar to gold. That’s why some investors treat it as a store of value, especially during periods of inflation.

Why people buy Bitcoin

There are several reasons why millions of people are buying Bitcoin:

• To diversify their portfolio
• To protect savings from inflation
• Out of interest in the technology
• Or simply to be part of a global movement

At Coinstancy, we believe that understanding the basics of Bitcoin is key to investing wisely in crypto.

Bitcoin’s limitations

Bitcoin isn’t perfect. It can be slow and energy-intensive. Plus, its value can be highly volatile. That’s why you should never invest more than you’re willing to lose.