What is Bitcoin?

Bitcoin is the first cryptocurrency and still the largest by market value. It was introduced in 2009 by a person or group using the name Satoshi Nakamoto, and it lets people send value to each other over the internet without a bank in the middle.

The 21 million limit

The Bitcoin software caps the total supply at 21 million coins. New coins are released to miners as a reward for securing the network, and that reward is cut in half roughly every four years in an event called the halving. Because the supply is fixed, some people compare Bitcoin to digital gold.

How it is secured

Bitcoin uses a system called proof of work. Miners compete to add the next block of transactions to the chain, and the winner earns the block reward plus fees. The work required makes attacking the network very expensive. You can read more in our guide to crypto mining.

Why people hold it

• Store of value: some investors treat it as a hedge against inflation or weak currencies, though its price is far more volatile than gold.
• Access: anyone with an internet connection can hold and send it.
• Liquidity: it is the most widely traded crypto asset, so it is usually the easiest to buy and sell.

The risks

Bitcoin’s price can fall by large amounts in a short time. It is also not backed by a government or company, and rules around it differ from country to country. Treat it as a high-risk asset and do your own research.

You can follow the live price on our markets page.