Bitcoin is the pioneering cryptocurrency that introduced the concept of decentralized digital currency. It operates on a peer-to-peer network, enabling secure and transparent transactions without the need for intermediaries. Let’s explore the basics of Bitcoin, including its origin, how it works, its market performance, its risks and challenges, and more. After finishing this guide, you should have a thorough overview of Bitcoin and its primary uses.

Bitcoin was the first decentralized crypto in existence, paving the way for all that followed. Bitcoin serves a variety of functions. Some people buy and hold it as an investment. Others use it to buy or sell goods or services. It can also be used for crowdfunding, donations, and more. Typically, when people refer to the Bitcoin network, they capitalize the word. But when they refer to a unit of the cryptocurrency, they lowercase it. That said, there is no set rule on this, and you can do as you like.

The original Satoshi whitepaper states and its core code assures the limited number of coins in circulation will never be more than 21 million, which is estimated to be produced by 2140. Those wanting to get their hands on bitcoins will have to do so by either mining them, buying them, or earning them. Bitcoin price is still mostly governed by the law of supply and demand just like traditional currencies. This means that the price will rise when the demand is high and drop as the demand wanes. You can find Bitcoin live charts here.

Bitcoin price can behave in an unpredictable manner that goes with the novelty of the market itself. Its coin market capitalization is still small compared to heavy hitters among the fiat currencies. Bitcoin market capitalization surpassed USD 300 billion in December 2017, when Bitcoin price hit almost USD 20,000, and dropped to almost USD 100 billion in the summer of 2018.