Bitcoin Basics

What is Bitcoin?

Bitcoin is a decentralized digital currency that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes and recorded on a public distributed ledger called a blockchain.

What is a Satoshi?

A satoshi is the smallest unit of Bitcoin, equivalent to 0.00000001 BTC. It's named after Bitcoin's pseudonymous creator, Satoshi Nakamoto. Think of satoshis like cents to a dollar, but with much higher divisibility.

How Does Bitcoin Work?

Bitcoin works using blockchain technology - a distributed ledger that records all transactions across a network of computers. Miners validate transactions through complex mathematical problems, creating new blocks. The system uses cryptography to secure transactions and control the creation of new bitcoins.

Advantages & Storage

Advantages of Using Bitcoin

• Decentralization: No central authority controls Bitcoin
• Low Fees: Especially for international transfers
• Financial Freedom: Anyone can use Bitcoin regardless of location
• Security: Cryptographically secure transactions
• Limited Supply: Only 21 million BTC will ever exist
• Transparency: All transactions are publicly recorded

Bitcoin as an Asset

Bitcoin is considered both a currency and a store of value. Many investors view it as "digital gold" due to its scarcity and use it as a hedge against inflation or currency devaluation.

Types of Bitcoin Wallets