Definition
Bitcoin is an open monetary network introduced by Satoshi Nakamoto and launched in 2009. Its native asset is bitcoin, commonly identified by the ticker BTC. The network uses a public blockchain to record transactions and does not require a central institution to issue balances or approve individual transfers.
How It Works
Users authorize spending with digital signatures. Full nodes independently enforce the protocol rules, while miners compete through proof of work to propose blocks. Nodes select the valid chain with the greatest cumulative proof of work. The issuance schedule reduces the block subsidy approximately every four years, limiting supply to approximately 21 million BTC under the existing rules.
Uses and Limitations
BTC can be used for transfers and payments, and some holders treat it as a store of value. One BTC equals 100 million satoshis. Scarcity does not guarantee stable prices or investment returns. On-chain transactions involve fees and confirmation time; confirmed payments can be difficult to reverse. Public transaction history also means Bitcoin is pseudonymous rather than inherently anonymous.