What it is
Bitcoin is a cryptocurrency created in 2009 by an anonymous entity known as Satoshi Nakamoto. It operates on a blockchain, a distributed public ledger that records all transactions. Transactions are verified by network nodes through cryptography and recorded in blocks. Unlike traditional currencies, Bitcoin is not controlled by a bank or government, making it a decentralized system. Its supply is capped at 21 million units, which contributes to its perceived value.
Bitcoin's price is highly volatile, influenced by market demand, regulatory news, technological developments, and macroeconomic factors. Its adoption by institutions and as legal tender in some countries impacts its market presence. News often focuses on its price movements, network upgrades like Taproot, or its role as a "digital gold" alternative. Understanding Bitcoin is crucial for investors tracking the broader crypto market.
Why it matters
Understanding Bitcoin is fundamental for retail investors as it is the largest cryptocurrency by market capitalization and often influences the entire crypto market. Its mechanics impact its scarcity and value.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice