What Is Bitcoin? A Clear Guide to BTC in 2026
Bitcoin is a digital currency that runs on a public blockchain. It lets people send value without a bank or payment processor. Supply is capped at 21 million, which creates a hard scarcity model. Transactions are verified by a global network that anyone can join.
What Bitcoin Is
Bitcoin is money that lives on the internet. It is not issued by a company or government. Ownership is tracked by private keys which control where coins can move. If you control the keys, you control the funds.
BTC balances live on the blockchain, not inside an app. Wallets store credentials, not coins. That distinction explains why self custody matters and why lost keys mean lost access.
How the Network Works
Bitcoin uses proof of work to secure transactions. Miners validate blocks which are added to the blockchain. The network adjusts mining difficulty to keep block times steady.
Each block bundles many transactions. Once confirmed, those transfers are effectively final. The tradeoff is energy use, yet the benefit is a neutral network with no single operator.
Why People Use Bitcoin
Some use BTC for payments or transfers. Others see it as a long term store of value. It also acts as a settlement asset across exchanges and trading platforms.
Use cases vary by region. In unstable currencies, BTC can serve as a savings tool. For traders, it is often a base asset used to move value between venues.
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Risks to Know
Bitcoin is volatile and transactions are final. Fees can spike during high demand. Security depends on how you store your keys.
Price swings are part of the asset. If you need short term liquidity, size your exposure carefully. Use risk limits that fit your budget.
Getting Started Safely
Use a secure wallet and enable strong account protection. We track wallet tools and security products under Tools. For account verification questions, read KYC and verification guides.
Start small, do a test transfer, then scale. This habit prevents most first time mistakes.
Quick Facts
| Launch year | 2009 |
| Supply cap | 21 million BTC |
| Consensus | Proof of work |
| Primary use cases | Payments, settlement, store of value |
| Main risks | Volatility, custody mistakes, fee spikes |
Key Takeaways
- Bitcoin is a decentralized digital currency with a fixed supply.
- Security depends on how you hold keys and protect backups.
- Fees and confirmation time change based on network demand.
FAQ
What makes Bitcoin different from other coins?
Bitcoin has the longest track record, a fixed 21 million supply, and the largest proof of work network.
Can Bitcoin be used for everyday payments?
Yes, but confirmation time and fees vary. Many users treat BTC as long term savings.
What is a private key?
A private key controls the ability to move BTC. If you lose it, funds are not recoverable.
How do I buy Bitcoin safely?
Use a trusted exchange, enable account security, then transfer to a wallet you control.
Can Bitcoin transactions be reversed?
No. Bitcoin transactions are final once confirmed on the blockchain.