Monday, December 8, 2025

The Bitcoin Network

Bitcoin · the original crypto asset

The

Launched in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin introduced decentralised, fixed-supply digital money.

  • Hard cap: 21 million BTC with a transparent halving schedule.
  • Security: Proof-of-work miners and nodes enforce open, auditable rules.
  • Neutral rails: Peer-to-peer value transfer without central control.
  • Macro role: Widely framed as “digital gold”.
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Bitcoin is decentralised digital money that runs on a public blockchain. No bank, company or government controls it; rules are enforced by code and thousands of nodes.

  • Anyone can create a wallet and verify the supply.
  • Open, borderless system designed to resist censorship.

Miners use computing power to secure the network and add blocks of transactions. Nodes independently verify each block, ensuring nobody can change the rules unilaterally.

  • Proof-of-work makes attacks extremely costly.
  • Anyone can run a node to audit the system.

New BTC are issued as block rewards. Roughly every four years, this reward halves, slowing new supply until it approaches the 21 million cap.

  • Transparent, predictable monetary policy.
  • Halving cycles often drive long-term narratives.

Self-custody means you hold your own keys instead of trusting an exchange, but it also means you are responsible for safety.

  • Use reputable hardware wallets.
  • Store seed phrases offline and never share them.
  • Beware phishing, fake apps and scams.

Every transaction is public. Fees rise when demand for block space is high and fall when it is quiet.

  • Mempool and fee charts show congestion.
  • On-chain data helps read usage and holder behaviour.

Many treat Bitcoin as a long-term store of value: scarce, global and independent of central banks.

  • Fixed maximum supply, verifiable by anyone.
  • Movable across borders in minutes.
  • Still volatile, so allocation discipline matters.

The base layer prioritises security; scaling comes from layers built on top, like Lightning, for fast and cheap payments.

  • Open a channel once, transact many times.
  • Suited for everyday, smaller transactions.

Bitcoin prices can swing sharply. Policy shifts, liquidity, leverage and poor security practices all add risk.

  • Always do your own research and seek professional advice before investing in cryptocurrencies.
  • Use strong custody; avoid leverage.
  • Check local tax and regulatory rules.

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