Bitcoin

Conceived as an alternative to traditional finance and monetary systems, bitcoin was launched in early 2009 as a peer-to-peer transaction network and currency. It allows holders to exchange value without the need for central banks or other intermediaries. This is made possible through the use of a distributed ledger — a blockchain — which offers transparency, security and immutability for every transaction recorded on the network,

For a blockchain to function, it needs a consensus mechanism: a system by which all of the computers connected to the network can agree upon its states. This is what keeps the ledger’s balances consistent across every copy on every network node. For bitcoin, this mechanism is called Proof of Work (PoW).

In this system, participants known as miners use specialized hardware to solve complex mathematical puzzles. Whenever a miner successfully ‘solves’ a block, they receive newly minted bitcoin and transaction fees in return. Since this process requires significant computational resources, it prevents bad actors from hijacking the network by making any such attack prohibitively expensive.

Unlike fiat currencies such as the U.S. dollar, bitcoin has a fixed maximum supply; there can never be any more than 21 million BTC minted. As of late 2026, just over 20 million coins have been minted. Bitcoin’s digital scarcity is reinforced by a periodic event programmed into its code called a halving. Once every 210,000 blocks (roughly every four years) the rate of mining rewards is cut in half, meaning that the rate of new issuance slows over time. When the cap is reached, no more coins will be issued and miners will receive only transaction fees.

Bitcoin is the asset at the forefront of the digital asset markets — its movements dictate the overall direction of the market and other cryptocurrencies typically follow in its wake. One key metric watched by market analysts is ‘bitcoin dominance’: the total market cap of BTC versus that of the broader crypto market. When this indicator drops, it implies that capital is cycling out of bitcoin and trickling through the broader crypto markets.

With more institutions entering the crypto space via ETFs and other investment vehicles, bitcoin is increasingly being embraced as a legitimate asset even by traditional markets. Since its inception, it has maintained its status as the most secure and recognized digital asset in the world.