#ChristmasMarketAnalysis Trade
Table of Contents
By The Investopedia Team Updated December 05, 2024
Reviewed by Julius Mansa
Fact checked by Amanda Jackson
Part of the Series
Bitcoin Basics
What Is Bitcoin?
Bitcoin (BTC) is a cryptocurrency (a virtual currency) designed to act as money and a form of payment outside the control of any one person, group, or entity. This removes the need for trusted third-party involvement (e.g., a mint or bank) in financial transactions.
Bitcoin was introduced to the public in 2008 by an anonymous developer or group of developers using the name Satoshi Nakamoto. It has since become the most well-known and largest cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies.
Read on to learn more about the cryptocurrency that started it all—the history behind it, how to buy it, mine it, and what it can be used for.
Key Takeaways
Bitcoin is the end product of the work of many people, but it is generally accepted that Satoshi Nakamoto created it and introduced it in 2008.
Bitcoin is the public blockchain used to create and manage the cryptocurrency of the same name.
Bitcoin mining is the race between miners to hash block information, find the solution to a hashing problem, and add a block to the blockchain. The winning miner is rewarded with bitcoins.
Bitcoin can be used by speculators, investors for investing purposes, and consumers for purchases or value exchange.
There are many risks involved with investing in and using bitcoins, including volatility, fraud, and theft.
Bitcoin (BTC): A cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, and thus removing the need for third-party involvement in financial transactions.
Investopedia / Julie Bang
Understanding Bitcoin
In August 2008, the domain name Bitcoin.org was registered. It was created by Satoshi Nakamoto and Martti Malmi, who worked with the anonymous Nakamoto to develop Bitcoin.
1
How Bitcoin Started
In October 2008, Nakamoto announced to th
