Bitcoin: What it is: Discover in simple terms what Bitcoin is, how it was created, and the role blockchain technology plays in its operation.
In recent years, the term Bitcoin has found its way into conversations, news, and even major companies’ financial decisions. But… what exactly is Bitcoin? Where did it come from? And why is it so valuable?
Here we explain it clearly and without technical jargon.
What is Bitcoin?
Bitcoin is a digital currency, also called a cryptocurrency, that allows you to send and receive money over the internet without the need for banks, governments, or intermediaries.
Unlike the euro or the dollar, Bitcoin does not exist in physical form: there are no bills or coins. Everything works virtually, and it is stored in what is known as a “digital wallet”.
Who invented Bitcoin?
Bitcoin was created in 2009 by a person (or group) under the pseudonym Satoshi Nakamoto. To this day, no one knows who they really are. Nakamoto introduced Bitcoin as a response to the 2008 financial crisis, seeking a more transparent and decentralized form of money.
What is blockchain?
To understand how Bitcoin works, you need to know about blockchain, its underlying technology.
Imagine a giant, public, online ledger where all Bitcoin transactions are recorded. That ledger is called the blockchain. Each page of the ledger is a “block,” and each block is connected to the previous one, forming a chain.
The magic lies in the fact that no one can alter what has already been written, and all users can verify it. It is a secure, transparent technology that is nearly impossible to hack.
Why does Bitcoin have value?
Bitcoin is not backed by gold or governments. Its value depends on supply and demand. Only 21 million bitcoins will ever exist, which makes it scarce. Since people believe in its utility and trust it, the price has increased over time.
Additionally, because it does not depend on banks, you can send money anywhere in the world in minutes, with lower fees.
Is it safe?
Bitcoin is safe if used correctly. But like all things digital, there are risks if you don’t protect your keys or wallet. It is also a highly volatile market: its price can rise or fall rapidly.
In summary:
- Bitcoin is a digital currency that does not require banks.
- It was created in 2009 by the mysterious Satoshi Nakamoto.
- It works thanks to blockchain, a secure and transparent technology.
- Its value depends on user trust and its scarcity.
What’s next?
Bitcoin has been the first step in a digital revolution in the financial world. Although it is still too early to know whether it will be the money of the future, the truth is that it has already changed the way we understand money.
