10 Facts About Bitcoin

1. Bitcoin’s Creation and Whitepaper

Bitcoin was introduced in 2008 by the mysterious figure(s) known as Satoshi Nakamoto, who published a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” This document proposed a system that would enable online payments without relying on a trusted third party, solving the double-spending problem using a decentralized ledger. The whitepaper laid the theoretical foundation for blockchain and cryptocurrencies.

• Source: Nakamoto, S. (2008). Bitcoin Whitepaper

2. Blockchain Technology

Bitcoin’s blockchain is a distributed ledger that records all transactions across a network of computers (nodes). Each block contains a batch of transactions and is cryptographically linked to the previous one, making the chain immutable. This ensures transparency, as anyone can verify transactions, and security, as altering past records is practically impossible without controlling the majority of the network’s computing power.

• Source: Narayanan, A. et al. (2016). Bitcoin and Cryptocurrency Technologies. Princeton University Press.

3. Limited Supply

Bitcoin’s supply is capped at 21 million coins. This hard limit is programmed into the protocol, preventing inflation by limiting the total number of Bitcoins that can ever be mined. This scarcity has led many to compare Bitcoin to precious metals like gold, fueling the narrative of Bitcoin as “digital gold.” As of mid-2025, over 19 million Bitcoins have been mined.

• Source: Antonopoulos, A. M. (2017). Mastering Bitcoin. O’Reilly Media.

4. Mining Process

Bitcoin miners use specialized hardware to solve complex cryptographic puzzles that validate blocks of transactions. This “proof of work” secures the network and controls the issuance of new coins. Mining rewards halve approximately every four years in events known as “halvings,” reducing the rate of new Bitcoin creation and increasing scarcity over time.

• Source: Nakamoto, S. (2008). Bitcoin Whitepaper

5. Decentralization

Bitcoin’s decentralization means no single entity controls the network. Thousands of nodes worldwide maintain copies of the blockchain and validate transactions. This makes Bitcoin censorship-resistant, as it cannot be easily shut down or manipulated by governments or corporations, enhancing financial sovereignty for users.

• Source: Narayanan, A. et al. (2016). Bitcoin and Cryptocurrency Technologies.

6. Bitcoin’s Price Volatility

Bitcoin’s price is notoriously volatile. From being worth less than a cent in 2010 to peaking near $69,000 in late 2021, its price is influenced by speculation, regulatory news, technological developments, and macroeconomic trends. This volatility attracts traders but also poses challenges for everyday use as a stable currency.

• Source: CoinDesk Bitcoin Price Index (historical data).

7. First Real-World Transaction

On May 22, 2010, programmer Laszlo Hanyecz made the first documented real-world purchase with Bitcoin by buying two pizzas for 10,000 BTC, now celebrated annually as “Bitcoin Pizza Day.” Those Bitcoins would be worth hundreds of millions today, highlighting Bitcoin’s early low valuation and massive appreciation over time.

• Source: Bitcoin Wiki.

8. Bitcoin as Digital Gold

Bitcoin is increasingly seen as a store of value akin to gold due to its scarcity, decentralized nature, and difficulty to counterfeit. Investors use it as a hedge against inflation and currency devaluation, especially in times of economic uncertainty. Academic research examines its viability and challenges as a currency versus a speculative asset.

• Source: Yermack, D. (2013). “Is Bitcoin a Real Currency? An Economic Appraisal,” NBER Working Paper.

9. Security and Risks

While the Bitcoin protocol is secure, user-level security depends on how private keys are stored. Loss of private keys means losing access to Bitcoins permanently. Additionally, users face risks from scams, phishing, and hacking of exchanges or wallets. Education and secure storage practices (e.g., hardware wallets) are critical to protecting Bitcoin holdings.

• Source: Federal Trade Commission (FTC) Bitcoin Consumer Alert.

10. Global Adoption

Bitcoin’s adoption is growing worldwide. Beyond retail acceptance, institutional investment has surged, and countries like El Salvador have recognized it as legal tender. This move has sparked debates on regulatory frameworks, financial inclusion, and economic sovereignty, marking a major milestone in cryptocurrency adoption.

• Source: Reuters (2021). “El Salvador adopts Bitcoin as legal tender.”