Skip to main content

What is BTC

Imagine that Bitcoin is like a special kind of gold, but this gold is entirely digital, meaning it only exists on the internet. We can make the following comparison:

  • Physical Gold: You need a secure place to store it, such as a safe deposit box at a bank.
  • Bitcoin: This 'digital gold' is stored in a 'digital wallet,' which is a program on the internet that secures your Bitcoin.

Remember, although Bitcoin is a digital asset, it is not backed by any bank or government. Therefore, its value mainly depends on the trust and demand people have for it. Similarly, it does not become useless due to bank failures or the collapse of governments.

BTC has the following characteristics:

  • Limited Supply: The total supply of Bitcoin is capped, with the protocol designed to limit the issuance to a maximum of 21 million BTC.
  • Cross-Border Payments: Bitcoin enables users to send and receive funds quickly and at a low cost, across borders, without the need for traditional banking systems.
  • Investment Asset: Many people also consider Bitcoin as an investment asset. When it was first introduced in 2008, it was virtually worthless, with its price being less than $0.01. Over the years, Bitcoin has experienced significant growth and adoption, and as of now, it has reached a value of over 60,000 per BTC.