What is Bitcoin (BTC)?
Bitcoin (BTC) is the world's first decentralized digital currency operating on a peer-to-peer electronic cash system. It enables secure transactions through blockchain technology without intermediaries. As the pioneer of cryptocurrency, Bitcoin introduced revolutionary concepts:
- Decentralized ledger technology (blockchain)
- Proof-of-Work consensus mechanism
- Fixed supply cap of 21 million coins
- Predictable issuance schedule through halving events every 210,000 blocks (~4 years)
The network currently offers block rewards of 6.25 BTC per validated block, with miners competing to solve complex cryptographic hashes that secure transactions and prevent double-spending.
Bitcoin's Origins and Creator
The enigmatic Satoshi Nakamoto published Bitcoin's whitepaper on October 31, 2008, with these key milestones:
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- January 3, 2009: Genesis block mined (embedded with newspaper headline about bank bailouts)
- May 22, 2010: First commercial transaction (10,000 BTC for two pizzas, now celebrated as Bitcoin Pizza Day)
- July 2010: Bitcoin begins trading at $0.0008-$0.08
Nakamoto handed network control to developer Gavin Andresen in 2010 before disappearing. Over 750 GitHub contributors have since improved Bitcoin's codebase.
Bitcoin Price History and Market Performance
BTC/BRL Trading (Foxbit Exchange)
- 2015: R$982-R$1,026 (initial trading range)
- November 2021: All-time high of R$380,000
BTC/USD Markets
- 2011: $2-$15 early valuation
- April 14, 2021: Peak at $64,863.10
- November 2021: Record high of $69,000
Market Capitalization Growth
- Initial cap: $241 million
- 2021 milestone: First crypto to surpass $1 trillion market cap
Bitcoin's Competitive Advantages
- First-mover advantage with strongest network effect
- Hardest monetary asset with verifiable scarcity
- Global settlement layer without centralized control
- Most secure blockchain with extensive hash power
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The cryptocurrency market ($2+ trillion valuation) exists because Bitcoin proved:
- Digital scarcity is possible
- Trustless transactions work at scale
- Alternative financial systems can thrive
FAQ: Bitcoin Essentials
Q: How often are new Bitcoins created?
A: Approximately every 10 minutes (block time), with current rewards of 6.25 BTC per block until the next halving.
Q: What makes Bitcoin valuable?
A: Its combination of limited supply, decentralized security, and widespread adoption as digital gold.
Q: How many Bitcoin halvings have occurred?
A: Three halvings so far (2012, 2016, 2020), reducing block rewards from 50 BTC to 6.25 BTC currently.
Q: Can Bitcoin's protocol change?
A: Yes, but changes require overwhelming consensus among users, miners, and nodes due to its decentralized nature.
Q: What's Bitcoin's inflation rate?
A: Currently ~1.8% annually, decreasing after each halving until reaching 0% around 2140 when all BTC are mined.
Q: Where can I securely store Bitcoin?
A: In hardware wallets, software wallets, or through regulated custodians - each offering different security tradeoffs.