Investing Basics

What Is Bitcoin?

Bitcoin is the first cryptocurrency, launched in 2009 by a person or group using the name Satoshi Nakamoto. It operates on a decentralized blockchain without a central authority, and its protocol caps the total supply at 21 million coins. Bitcoin can be divided into small units called satoshis.

Mining and Halving

New bitcoins are created as rewards for “miners” who validate transactions. The reward is cut in half roughly every four years, an event known as the halving, slowing new supply.

Volatility

Bitcoin’s price has historically experienced large swings.

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Cryptocurrency Blockchain Volatility Capital Gain

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.