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Bitcoin price today, BTC to USD live price, marketcap and chart | CoinMarketCap

oin price today, BTC to USD live price, marketcap and chart | CoinMarketCapCryptos: 2.2M+Exchanges: 724Market Cap: $2.7T0.94%24h Vol: $162.34B2.81%Dominance: BTC: 52.1% ETH: 17.7% ETH Gas: 70 Gwei Fear & Greed: 92/100CryptocurrenciesCryptocurrenciesRankingCategoriesGlobal ChartsHistorical SnapshotsBitcoin ETFsLeaderboardsTrendingRecently AddedGainers & LosersMost VisitedNFTOverall NFT StatsTop CollectionsUpcoming SalesOn Chain DataDex PairsChain RankingHot DEX PairsExchangesSpotDerivativesDEXCommunityFeedsTopicsLivesArticlesProductsPRODUCTSConverterCMC LabsTelegram BotAdvertiseCrypto APISite WidgetsCAMPAIGNSAirdropsDiamond RewardsLearn & EarnCALENDARSICO CalendarEvents CalendarLearnNewsAcademyResearchVideosGlossaryHalving: 35DWatchlistPortfolioSearch/Bitcoin price BTC$71,552.33 1.29% (1d)Bitcoin to USD ChartLoading DataPlease wait a moment. Add to watchlist Bitcoin statisticsMarket cap 1.25%$1,406,657,721,262#1Volume (24h) 2.58%$62,048,140,734#2Volume/Market cap (24h) 4.41%Circulating supply 19,652,456 BTC93.58%Total supply 19,652,456 BTCMax. supply 21,000,000 BTCFully diluted market cap $1,503,110,458,383Official linksWebsiteWhitepaperGitHubSocialsRedditRating · Based on 2 institutional ratings4.9 Network informationChain explorersSupported walletsUCID1 BTC to USD ConverterBTCUSDPrice performance24h Low$68,728.85High$72,953.72All-time highMar 12, 2024 (5 hours ago)$72,953.72-1.89%All-time lowJul 14, 2010 (14 years ago)$0.04865+147136137.22%See historical dataPopularityIn watchlists4,660,829x27th / 9.0KTagsMineablePoWSHA-256Show allMore informationDo you own this project? Update Token Info Loading DataPlease wait a moment. Bitcoin community Bitcoin marketsALLCEXDEXSpotPerpetualFuturesAll pairsLoading data...Show full widthDisclaimer: This page may contain affiliate links. CoinMarketCap may be compensated if you visit any affiliate links and you take certain actions such as signing up and transacting with these affiliate platforms. Please refer to Affiliate DisclosureBitcoin news About BitcoinWhat Is Bitcoin (BTC)?Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.Who Are the Founders of Bitcoin?Bitcoin’s original inventor is known under a pseudonym, Satoshi Nakamoto. As of 2021, the true identity of the person — or organization — that is behind the alias remains unknown.On October 31, 2008, Nakamoto published Bitcoin’s whitepaper, which described in detail how a peer-to-peer, online currency could be implemented. They proposed to use a decentralized ledger of transactions packaged in batches (called “blocks”) and secured by cryptographic algorithms — the whole system would later be dubbed “blockchain.”Just two months later, on January 3, 2009, Nakamoto mined the first block on the Bitcoin network, known as the genesis block, thus launching the world’s first cryptocurrency. Bitcoin price was $0 when first introduced, and most Bitcoins were obtained via mining, which only required moderately powerful devices (e.g. PCs) and mining software. The first known Bitcoin commercial transaction occurred on May 22, 2010, when programmer Laszlo Hanyecz traded 10,000 Bitcoins for two pizzas. At Bitcoin price today in mid-September 2021, those pizzas would be worth an astonishing $478 million. This event is now known as “Bitcoin Pizza Day.” In July 2010, Bitcoin first started trading, with the Bitcoin price ranging from $0.0008 to $0.08 at that time.However, while Nakamoto was the original inventor of Bitcoin, as well as the author of its very first implementation, he handed the network alert key and control of the code repository to Gavin Andresen, who later became lead developer at the Bitcoin Foundation. Over the years a large number of people have contributed to improving the cryptocurrency’s software by patching vulnerabilities and adding new features.Bitcoin’s source code repository on GitHub lists more than 750 contributors, with some of the key ones being Wladimir J. van der Laan, Marco Falke, Pieter Wuille, Gavin Andresen, Jonas Schnelli and others.What Makes Bitcoin Unique?Bitcoin’s most unique advantage comes from the fact that it was the very first cryptocurrency to appear on the market.It has managed to create a global community and give birth to an entirely new industry of millions of enthusiasts who create, invest in, trade and use Bitcoin and other cryptocurrencies in their everyday lives. The emergence of the first cryptocurrency has created a conceptual and technological basis that subsequently inspired the development of thousands of competing projects.The entire cryptocurrency market — now worth more than $2 trillion — is based on the idea realized by Bitcoin: money that can be sent and received by anyone, anywhere in the world without reliance on trusted intermediaries, such as banks and financial services companies.Thanks to its pioneering nature, BTC remains at the top of this energetic market after over a decade of existence. Even after Bitcoin has lost its undisputed dominance, it remains the largest cryptocurrency, with a market capitalization that surpassed the $1 trillion mark in 2021, after Bitcoin price hit an all-time high of $64,863.10 on April 14, 2021. This is owing in large part to growing institutional interest in Bitcoin, and the ubiquitousness of platforms that provide use-cases for BTC: wallets, exchanges, payment services, online games and more.How Much Bitcoin Is in Circulation?Bitcoin’s total supply is limited by its software and will never exceed 21,000,000 coins. New coins are created during the process known as “mining”: as transactions are relayed across the network, they get picked up by miners and packaged into blocks, which are in turn protected by complex cryptographic calculations.As compensation for spending their computational resources, the miners receive rewards for every block that they successfully add to the blockchain. At the moment of Bitcoin’s launch, the reward was 50 bitcoins per block: this number gets halved with every 210,000 new blocks mined — which takes the network roughly four years. As of 2020, the block reward has been halved three times and comprises 6.25 bitcoins.Bitcoin has not been premined, meaning that no coins have been mined and/or distributed between the founders before it became available to the public. However, during the first few years of BTC’s existence, the competition between miners was relatively low, allowing the earliest network participants to accumulate significant amounts of coins via regular mining: Satoshi Nakamoto alone is believed to own over a million Bitcoin.Mining Bitcoins can be very profitable for miners, depending on the current hash rate and the price of Bitcoin. While the process of mining Bitcoins is complex, we discuss how long it takes to mine one Bitcoin on CoinMarketCap Alexandria — as we wrote above, mining Bitcoin is best understood as how long it takes to mine one block, as opposed to one Bitcoin. As of mid-September 2021, the Bitcoin mining reward is capped to 6.25 BTC after the 2020 halving, which is roughly $299,200 in Bitcoin price today.How Is the Bitcoin Network Secured?Bitcoin is secured with the SHA-256 algorithm, which belongs to the SHA-2 family of hashing algorithms, which is also used by its fork Bitcoin Cash (BCH), as well as several other cryptocurrencies.What Is Bitcoin’s Role as a Store of Value?Bitcoin is the first decentralized, peer-to-peer digital currency. One of its most important functions is that it is used as a decentralized store of value. In other words, it provides for ownership rights as a physical asset or as a unit of account. However, the latter store-of-value function has been debated. Many crypto enthusiasts and economists believe that high-scale adoption of the top currency will lead us to a new modern financial world where transaction amounts will be denominated in smaller units.The smallest units of Bitcoin, 0.00000001 BTC, are called Satoshis (or Sats in short), in a nod to the pseudonymous creator. At Bitcoin price now, 1 Satoshi is equivalent to roughly $0.00048.The top crypto is considered a store of value, like gold, for many — rather than a currency. This idea of the first cryptocurrency as a store of value, instead of a payment method, means that many people buy the crypto and hold onto it long-term (or HODL) rather than spending it on items like you would typically spend a dollar — treating it as digital gold.How Is Bitcoin’s Technology Upgraded?A hard fork is a radical change to the protocol that makes previously invalid blocks/transactions valid, and therefore requires all users to upgrade. For example, if users A and B are disagreeing on whether an incoming transaction is valid, a hard fork could make the transaction valid to users A and B, but not to user C.A hard fork is a protocol upgrade that is not backward compatible. This means every node (computer connected to the Bitcoin network using a client that performs the task of validating and relaying transactions) needs to upgrade before the new blockchain with the hard fork activates and rejects any blocks or transactions from the old blockchain. The old blockchain will continue to exist and will continue to accept transactions, although it may be incompatible with other newer Bitcoin clients.A soft fork is a change to the Bitcoin protocol wherein only previously valid blocks/transactions are made invalid. Since old nodes will recognise the new blocks as valid, a soft fork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules.Some examples of prominent cryptocurrencies that have undergone hard forks are the following: Bitcoin’s hard fork that resulted in Bitcoin Cash, Ethereum’s hard fork that resulted in Ethereum Classic.Bitcoin Cash has been hard forked since its original forking, with the creation of Bitcoin SV. Read more about the difference between Bitcoin, Bitcoin Cash and Bitcoin SV here.What Is Taproot?Taproot is a soft fork that bundles together BIP 340, 341 and 342 and aims to improve the scalability, efficiency, and privacy of the blockchain by introducing several new features.The two major changes are the introduction of the Merkelized Abstract Syntax Tree (MAST) and Schnorr Signature. MAST introduces a condition allowing the sender and recipient of a transaction to sign off on its settlement together. Schnorr Signature allows users to aggregate several signatures into one for a single transaction. This results in multi-signature transactions looking the same as regular transactions or more complex ones. By introducing this new address type, users can also save on transaction fees, as even complex transactions look like simple, single-signature ones.Although HODLers will probably not notice a big impact, Taproot could become a key milestone to equipping the network with smart contract functionality. In particular, Schnorr Signatures would lay the foundation for more complex applications to be built on top of the existing blockchain, as users start switching to Taproot addresses primarily. If adopted by users, Taproot could, in the long run, result in the network developing its own DeFi ecosystem that rivals those on alternative blockchains like Ethereum.What Is the Lightning Network?The Lightning Network is an off-chain, layered payment protocol that operates bidirectional payment channels which allows instantaneous transfer with instant reconciliation. It enables private, high volume and trustless transactions between any two parties. The Lightning Network scales transaction capacity without incurring the costs associated with transactions and interventions on the underlying blockchain.Who Are the Largest Corporate Holders of Bitcoin?A few years ago, the idea that a publicly traded company might hold Bitcoin on its balance sheets seemed highly laughable. The flagship cryptocurrency was considered to be too volatile to be adopted by any serious business. Many top investors, including Warren Buffett, labeled the asset a “bubble waiting to pop.”This negative sentiment appears to have been broken, with a number of corporate behemoths buying up Bitcoin since 2020. In particular, business intelligence firm MicroStrategy set the pace after it bought $425 million worth of Bitcoin in August and September 2020. Since then, many others have followed suit, including EV manufacturer Tesla.MicroStrategy has by far the largest Bitcoin portfolio held by any publicly-traded company. The business analytics platform has adopted Bitcoin as its primary reserve asset, aggressively buying the cryptocurrency through 2021 and 2022. As of August 30, 2022, the company had 129,699 Bitcoin in its reserve, equivalent to just over $2.5 billion.Other top corporate holders include Marathon Digital Holdings, with 10,054 BTC, Coinbase (9,000), Square Inc. (8,027), and Hut 8 Mining Corp. (7,078).Is Bitcoin Political?Bitcoin is becoming more political by the day, particularly after El Salvador began accepting the currency as legal tender. The country's president, Nayib Bukele, announced and implemented the decision almost unilaterally, dismissing criticism from his citizens, the Bank of England, the IMF, Vitalik Buterin and many others. Since the Bitcoin legal tender law was passed in September 2021, Bukele has also announced plans to build Bitcoin City, a city fully based on mining Bitcoin with geothermal energy from volcanoes.Countries like Mexico, Russia and others have been rumored to be candidates also to accept Bitcoin as legal tender, but thus far, El Salvador stands alone.On the flip side, countries like China have moved to heavily clamp down on Bitcoin mining and trading activities. In May 2021, the Chinese government declared that all crypto-related transactions are illegal. This was followed by a heavy crackdown on Bitcoin mining operations, forcing many crypto-related businesses to flee to friendlier regions.Surprisingly, the anti-crypto stance of the Chinese government has done little to stop the industry. According to data by the University of Cambridge, China is now the second-biggest contributor to Bitcoin's global hash rate, only behind the United States.How Much Is Bitcoin?The current valuation of Bitcoin is constantly moving, all day every day. It is a truly global asset. From a start of under one cent per coin, BTC has risen in price by thousands of percent to the numbers you see above. The prices of all cryptocurrencies are quite volatile, meaning that anyone’s understanding of how much Bitcoin is will change by the minute. However, there are times when different countries and exchanges show different prices and understanding how much Bitcoin is will be a function of a person’s location.Where Can You Buy Bitcoin (BTC)?Bitcoin is, in many regards, almost synonymous with cryptocurrency, which means that you can buy Bitcoin on virtually every crypto exchange — both for fiat money and other cryptocurrencies. Some of the main markets where BTC trading is available are:BinanceCoinbase ProOKExKrakenHuobi GlobalBitfinexIf you are new to crypto, use CoinMarketCap’s own educational portal — Alexandria — to learn how to start buying Bitcoin and other cryptocurrencies.Related Pages:Looking for market and blockchain data for BTC? Visit our block explorer.Want to buy Bitcoin? Use CoinMarketCap’s guide.Want to keep track of Bitcoin prices live? Download the CoinMarketCap mobile app!Want to convert Bitcoin price today to your desired fiat currency? Check out CoinMarketCap exchange rate calculator.Should you buy Bitcoin with PayPal?What is wrapped Bitcoin?Will Bitcoin volatility ever reduce?How to use a Bitcoin ATMBitcoin Energy ConsumptionOver the past few decades, consumers have become more curious about their energy consumption and personal effects on climate change. When news stories started swirling regarding the possible negative effects of Bitcoin’s energy consumption, many became concerned about Bitcoin and criticized this energy usage. A report found that each Bitcoin transaction takes 1,173 KW hours of electricity, which can “power the typical American home for six weeks.” Another report calculates that the energy required by Bitcoin annually is more than the annual hourly energy usage of Finland, a country with a population of 5.5 million.The news has produced commentary from tech entrepreneurs to environmental activists to political leaders alike. In May 2021, Tesla CEO Elon Musk even stated that Tesla would no longer accept the cryptocurrency as payment, due to his concern regarding its environmental footprint. Though many of these individuals have condemned this issue and move on, some have prompted solutions: how do we make Bitcoin more energy efficient? Others have simply taken the defensive position, stating that the Bitcoin energy problem may be exaggerated.At present, miners are heavily reliant on renewable energy sources, with estimates suggesting that Bitcoin’s use of renewable energy may span anywhere from 40-75%. However, to this point, critics claim that increasing Bitcoin’s renewable energy usage will take away from solar sources powering other sectors and industries like hospitals, factories or homes. The Bitcoin mining community also attests that the expansion of mining can help lead to the construction of new solar and wind farms in the future.Furthermore, some who defend Bitcoin argue that the gold and banking sector — individually — consume twice the amount of energy as Bitcoin, making the criticism of Bitcoin’s energy consumption a nonstarter. Moreover, the energy consumption of Bitcoin can easily be tracked and traced, which the same cannot be said of the other two sectors. Those who defend Bitcoin also note that the complex validation process creates a more secure transaction system, which justifies the energy usage.Another point that Bitcoin proponents make is that the energy usage required by Bitcoin is all-inclusive such that it encompasess the process of creating, securing, using and transporting Bitcoin. Whereas with other financial sectors, this is not the case. For example, when calculating the carbon footprint of a payment processing system like Visa, they fail to calculate the energy required to print money or power ATMs, or smartphones, bank branches, security vehicles, among other components in the payment processing and banking supply chain.What exactly are governments and nonprofits doing to reduce Bitcoin energy consumption? Earlier this year in the U.S., a congressional hearing was held on the topic where politicians and tech figures discussed the future of crypto mining in the U.S, specifically highlighting their concerns regarding fossil fuel consumption. Leaders also discussed the current debate surrounding the coal-to-crypto trend, particularly regarding the number of coal plants in New York and Pennsylvania that are in the process of being repurposed into mining farms.Aside from congressional hearings, there are private sector crypto initiatives dedicated to solving environmental issues such as the Crypto Climate Accord and Bitcoin Mining Council. In fact, the Crypto Climate Accord proposes a plan to eliminate all greenhouse gas emissions by 2040, And, due to the innovative potential of Bitcoin, it is reasonable to believe that such grand plans may be achieved.Crypto WalletsThe most popular wallets for cryptocurrency include both hot and cold wallets. Cryptocurrency wallets vary from hot wallets and cold wallets. Hot wallets are able to be connected to the web, while cold wallets are used for keeping large amounts of coins outside of the internet.Some of the top crypto cold wallets are Trezor, Ledger and CoolBitX. Some of the top crypto hot wallets include Exodus, Electrum and Mycelium.Still not sure of which wallet to use? Check out CoinMarketCap Alexandria’s guide on the top cold wallets of 2021 and top hot wallets of 2021. Bitcoin analyticsLoading...Most Visited CryptocurrenciesArtradeATR$0.01451122.55%CatgirlCATGIRL$0.000000000711917.59%EggdogEGG$0.00641725.63%RichQUACK.comQUACK$0.0000000012925.49%Baby ElonBABYELON$0.0000000000153510.61%OpSecOPSEC$1.909.11%neversolNEVER$0.000241524.51%TABOO TOKENTABOO$0.0031690.34%Bonk 2.0BONK2.0$0.0000000559616.92%MinuMINU$0.000000690517.83%BitcoinBTC$71,526.821.34%DechatDECHAT$4.3218.46%Script NetworkSCPT$0.045368.53%Okratech TokenORT$0.019018.05%WavesWAVES$3.510.88%ArtyfactARTY$1.927.46%Shiba InuSHIB$0.000031932.75%ShibwifhatSHIB$0.01130.55%XRPXRP$0.68866.11%EthereumETH$3,983.161.85%Global PricesBTC/USDUnited States Dollar$71,552.33BTC/EUREuro€65,509.24BTC/GBPPound Sterling£55,953.78BTC/CNYChinese Yuan¥513,888.86BTC/CADCanadian Dollar$96,562.02BTC/AUDAustralian Dollar$108,355.35BTC/JPYJapanese Yen¥10,566,824.86BTC/KRWSouth Korean Won₩93,891,909.31BTC/RUBRussian Ruble₽6,563,853.38BTC/INRIndian Rupee₹5,924,325.12BTC/BRLBrazilian RealR$355,851.22BTC/TRYTurkish Lira₺2,293,552.83BTC/PHPPhilippine Peso₱3,966,932.74People also watchEthereum$3,986.671.76%yearn.finance$10,186.622.54%Band Protocol$2.564.29%Gather$0.0035238.77%1irstcoin$0.000.00%GoldMint$0.034112.29%Uniswap$13.971.05%Firo$2.161.56%Chainlink$20.712.40%Oasis Network$0.17731.42%TrendingPepe$0.0000082834.05%Okratech Token$0.019077.37%FLOKI$0.00027211.77%DEVAI$7.0645.70%Gala$0.071081.22%Bitcoin Price Live DataThe live Bitcoin price today is $71,576.69 USD with a 24-hour trading volume of $62,048,140,734 USD. We update our BTC to USD price in real-time. Bitcoin is down 1.25% in the last 24 hours. The current CoinMarketCap ranking is #1, with a live market cap of $1,406,657,721,262 USD. It has a circulating supply of 19,652,456 BTC coins and a max. supply of 21,000,000 BTC coins.If you would like to know where to buy Bitcoin at the current rate, the top cryptocurrency exchanges for trading in Bitcoin stock are currently Binance, OKX, Bybit, UEEx, and LBank. You can find others listed on our crypto exchanges page.CryptocurrenciesCoinsBitcoinProductsCMC LabsChatGPT PluginCrypto APICrypto IndicesDoodlesSitemapAdvertiseCompanyAbout usTerms of usePrivacy PolicyCookie preferencesCookie policyCommunity RulesDisclaimerMethodologyCareersWe’re hiring!SupportRequest FormContact SupportFAQGlossarySocialsX (Twitter)CommunityTelegramInstagramFacebookRedditLinkedIn© 2024 CoinMarketCap. All rights reserved

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Getting started with Bitcoin

Using Bitcoin to transact is easy and accessible to everyone.

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Inform yourself

Bitcoin is different than what you know and use every day. Before you start using Bitcoin, there are a few things that you need to know in order to use it securely and avoid common pitfalls.

Choose your wallet

Free bitcoin wallets are available for all major operating systems and devices to serve a variety of your needs. For example, you can install an app on your mobile device for everyday use or you can have a wallet only for online payments on your computer. In any case, choosing a wallet is easy and can be done in minutes.

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Get Bitcoin

You can get Bitcoin by accepting it as a payment for goods and services. There are also several ways you can buy Bitcoin.

Buy Bitcoin

Spend Bitcoin

There are a growing number of services and merchants accepting Bitcoin all over the world. Use Bitcoin to pay them and rate your experience to help them gain more visibility.

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Inform yourself

Bitcoin does not require merchants to change their habits. However, Bitcoin is different than what you know and use every day. Before you start using Bitcoin, there are a few things that you need to know in order to use it securely and avoid common pitfalls.

Processing payments

You can process payments and invoices by yourself or you can use merchant services and deposit money in your local currency or bitcoins. Most point of sales businesses use a tablet or a mobile phone to let customers pay with their mobile phones.

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Accounting and taxes

Merchants often deposit and display prices in their local currency. In other cases, Bitcoin works similarly to a foreign currency. To get appropriate guidance regarding tax compliance for your own jurisdiction, you should contact a qualified accountant.

Gaining visibility

There is a growing number of users searching for ways to spend their bitcoins. You can submit your business in online directories to help them easily find you. You can also display the Bitcoin logo on your website or your brick and mortar business.

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How does Bitcoin work?

This is a question often surrounded by confusion, so here's a quick explanation!

The basics for a new user

As a new user, you can get started with Bitcoin without understanding the technical details. Once you've installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should be used only once.

Balances - block chain

The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. It allows Bitcoin wallets to calculate their spendable balance so that new transactions can be verified thereby ensuring they're actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.

Transactions - private keys

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast to the network and usually begin to be confirmed within 10-20 minutes, through a process called mining.

Processing - mining

Mining is a distributed consensus system that is used to confirm pending transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all the subsequent blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively to the block chain. In this way, no group or individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

Going down the rabbit hole

This is just a short summary of Bitcoin. If you want to learn more of the details, you can read the original paper that describes its design, the developer documentation, or explore the Bitcoin wiki.

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What is Bitcoin? | Learn all about BTC | Get Started with Bitcoin.com

is Bitcoin? | Learn all about BTC | Get Started with Bitcoin.comDownloadWhat is Bitcoin?Bitcoin is a decentralized digital asset. It is a new type of asset that joins the ranks of traditional assets such as cash, gold, and real estate.Use the multichain Bitcoin.com Wallet app, trusted by millions to safely and easily buy, sell, trade, and manage bitcoin and the most popular cryptocurrencies.Table of ContentsWhat makes Bitcoin different?What gives Bitcoin value?How does Bitcoin work?Who controls Bitcoin?Why does Bitcoin exist? Is it needed?Is Bitcoin legal?Can bitcoin be stolen?Could there be a bug in the Bitcoin software?Can the Bitcoin network be shut down or hacked?Buy as little as $30 worth to get startedBuy nowChoose from Bitcoin, Bitcoin Cash, Ethereum, and moreRelated guidesStart from here →How do I buy bitcoin?Learn how to get your first bitcoin in minutes.Read this article →How do I buy bitcoin?Learn how to get your first bitcoin in minutes.How do I sell bitcoin?Learn how to sell bitcoin into local currency safely.Read this article →How do I sell bitcoin?Learn how to sell bitcoin into local currency safely.What is a Bitcoin wallet?Learn about this essential tool for sending, receiving, and storing your bitcoin; how it works, and how to use it safely.Read this article →What is a Bitcoin wallet?Learn about this essential tool for sending, receiving, and storing your bitcoin; how it works, and how to use it safely.How do I create a Bitcoin wallet?Learn how to quickly and easily create a Bitcoin wallet. Understand the different wallet types and their respective pros & cons.Read this article →How do I create a Bitcoin wallet?Learn how to quickly and easily create a Bitcoin wallet. Understand the different wallet types and their respective pros & cons.How to choose the best Bitcoin walletFrom security to fee customization options, these are the key factors to consider when choosing a Bitcoin wallet.Read this article →How to choose the best Bitcoin walletFrom security to fee customization options, these are the key factors to consider when choosing a Bitcoin wallet.How do I send bitcoin?Sending bitcoin is as easy as choosing the amount to send and deciding where it goes. Read the article for more details.Read this article →How do I send bitcoin?Sending bitcoin is as easy as choosing the amount to send and deciding where it goes. Read the article for more details.How do I receive bitcoin?To receive bitcoin, simply provide the sender with your Bitcoin address, which you can find in your Bitcoin wallet. Read this article for more details.Read this article →How do I receive bitcoin?To receive bitcoin, simply provide the sender with your Bitcoin address, which you can find in your Bitcoin wallet. Read this article for more details.What's a 'self-custodial' wallet?Understand how the self-custodial model puts you in charge of your cryptoassets and protects you from third-party risk.Read this article →What's a 'self-custodial' wallet?Understand how the self-custodial model puts you in charge of your cryptoassets and protects you from third-party risk.How does bitcoin exchange work?How safe is it to store your crypto on centralized exchanges?Read this article →How does bitcoin exchange work?How safe is it to store your crypto on centralized exchanges?How to backup and restore a crypto walletMake sure to backup your crypto wallets. Find out why you should, and how.Read this article →How to backup and restore a crypto walletMake sure to backup your crypto wallets. Find out why you should, and how.How to avoid Bitcoin and other crypto fraudFrom phishing scams to fake Bitcoin exchanges, here's your guide to identifying and avoiding Bitcoin-related fraud.Read this article →How to avoid Bitcoin and other crypto fraudFrom phishing scams to fake Bitcoin exchanges, here's your guide to identifying and avoiding Bitcoin-related fraud.How do bitcoin transactions work?Understand how the Bitcoin public blockchain tracks ownership over time. Get clarity on key terms like public & private keys, transaction inputs & outputs, confirmation times, and more.Read this article →How do bitcoin transactions work?Understand how the Bitcoin public blockchain tracks ownership over time. Get clarity on key terms like public & private keys, transaction inputs & outputs, confirmation times, and more.Bitcoin.com in your inboxA weekly rundown of the news that matters, plus educational resources and updates on products & services that support economic freedomSign upStart investing safely with the Bitcoin.com WalletOver wallets created so farEverything you need to buy, sell, trade, and invest your Bitcoin and cryptocurrency securelyDownload now

Bitcoin Price | BTC Price Index and Live Chart - CoinDesk

oin Price | BTC Price Index and Live Chart - CoinDesk

Crypto Prices CoinDesk 20 IndexTV & VideosNewslettersPodcastsConsensus MagazineLearnBitcoin CalculatorConsensusWebinarsIndicesAboutMarkets Finance Technology Protocol Village Policy CoinDesk Studios Sponsored ContentUpcoming EventsLast Chance to Save $1,200 on Consensus!TV & VideosTV & VideosFirst MoverThe HashAll About BitcoinMoney ReimaginedCommunity CryptoView all showsWhat Will It Take for More Mainstream Media to Implement Web3 Tech?New Foodie Show Experiments with Web3Current Bitcoin Bull Run Is Breeding Millionaire Whales Slower: KaikoEl Salvador Bags Major Bitcoin Gains; Hong Kong's Stablecoin PushWatch On(Formerly Twitter)FacebookNewslettersSign up for our newslettersSee All Newsletters First MoverThe latest moves in crypto markets, in context.The NodeThe biggest crypto news and ideas of the day.Money ReimaginedThe transformation of value in the digital age.State of CryptoProbing the intersection of crypto and government.The ProtocolExploring the tech behind crypto.Crypto Long & ShortNews and analysis for the professional investor.Crypto for AdvisorsWhat financial advisors need to know about crypto.Enter your EmailSubscribeBy signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy.PodcastsPodcastsCoinDesk Podcast NetworkMarkets DailyMoney ReimaginedThe ProtocolUnchainedCarpe ConsensusGen CCrypto CrooksWomen Who Web3Unchained with Laura ShinVerifying Truth in the Age of Misinformation, With Melody Hildebrandt of FOXMarathon Digital’s Slipstream and Layer 2 AmbitionsIs the Bitcoin Halving Priced In? 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It is the crypto market standard, benchmarking billions of dollars in registered financial products and pricing hundreds of millions in daily over-the-counter transactions. Built for replicability and reliability, in continuous operation since 2014, the XBX is relied upon by asset allocators, asset managers, market participants and exchanges. The XBX is the flagship in a portfolio of single- and multi-asset indices offered by CoinDesk.Learn more onCoinDesk Indices $71,504.49-1.53%$68,825.9424H Price$72,960.46Bitcoin Trend IndicatorLearn MoreSignificant DowntrendNeutralSignificant UptrendBuy / SellGet CryptoBitcoin Trend IndicatorLearn MoreSignificant DowntrendNeutralSignificant Uptrend Share ChartAbout Bitcoin The Bitcoin price is $71,504.49, a change of -1.53% over the past 24 hours as of 7:26 p.m. The recent price action in Bitcoin left the tokens market capitalization at $1.41T. So far this year, Bitcoin has a change of 69.03%. Bitcoin is classified as a Currency under CoinDesks Digital Asset Classification Standard (DACS).Bitcoin is the world’s first decentralized cryptocurrency – a type of digital asset that uses public-key cryptography to record, sign and send transactions over the Bitcoin blockchain – all done without the oversight of a central authority.The Bitcoin network (with an upper-case “B”) was launched in January 2009 by an anonymous computer programmer or group of programmers under the pseudonym “Satoshi Nakamoto.” The network is a peer-to-peer electronic payment system that uses a cryptocurrency called bitcoin (lower case “b”) to transfer value over the internet or act as a store of value like gold and silver.Each bitcoin is made up of 100 million satoshis (the smallest units of bitcoin), making individual bitcoin divisible up to eight decimal places. That means anyone can purchase a fraction of a bitcoin with as little as one U.S. dollar.Bitcoin priceBitcoin’s price is renowned for being highly volatile, but despite that, it has become the top performing asset of any class (including stocks, commodities and bonds) over the past decade – climbing a staggering 9,000,000% between 2010 and 2020.When the cryptocurrency was launched at the beginning of 2009, as Satoshi Nakamoto mined the bitcoin genesis block (the first-ever block on the Bitcoin blockchain), 50 BTC entered circulation at a price of $0.00.Fifty bitcoin continued to enter circulation every block (created once every 10 minutes) until the first halving event took place in November 2012 (see below). Halvings refer to bitcoin’s issuance system, which was programmed into Bitcoin’s code by Satoshi Nakamoto. It essentially involves automatically halving the number of new BTC entering circulation every 210,000 blocks.In February 2011, BTC’s price reached parity with the U.S dollar for the first time. The milestone encouraged new investors into the market, and over the next four months, bitcoin’s price continued to rise – peaking at over $30.By early 2013, the leading cryptocurrency had recovered from a prolonged bearish episode and rose above $1,000, albeit only briefly. But with the infamous Mt Gox hack, China announcing its first ban on crypto and other situations, it took a further four years for the BTC price to return to above $1,000 again. Once that level was passed, however, bitcoin’s price continued to surge dramatically throughout 2017 until BTC peaked at its previous long-standing all-time high of $19,850.Over 2018, the entire crypto market plunged into what is now known as the “crypto winter” – a yearlong bear market. It wasn’t until December 2020, when bitcoin returned to test the previous all-time high, that it eventually surpassed that historical level and rose a further 239% over the next 119 days to a new all-time high of $64,799.What is Bitcoin?Bitcoin is the world’s first decentralized cryptocurrency – a type of digital asset that uses public-key cryptography to record, sign and send transactions over the Bitcoin blockchain – all done without the oversight of a central authority. It was launched in January 2009 by an anonymous computer programmer or group of programmers under the pseudonym 'Satoshi Nakamoto'.How does Bitcoin work?Bitcoin and other cryptocurrencies are like the email of the financial world. The currency doesn’t exist in a physical form, and the coin is transacted directly between the sender and the receiver without banking intermediaries to facilitate the transaction. Everything is done publicly through a transparent, immutable, distributed ledger technology called blockchain.Here are the main features of blockchain technology:Bitcoin transactions are recorded on a public, distributed ledger known as a “blockchain” that anyone can download and help maintain.Transactions are sent directly from the sender to the receiver without any intermediaries.Holders who store their own bitcoin have complete control over it. It cannot be accessed without the holder’s cryptographic key.Bitcoin doesn’t exist in a physical form.Bitcoin has a fixed supply of 21 million. No more bitcoin can be created and units of bitcoin cannot be destroyed.Bitcoin users send and receive coins over the network by inputting the public-key information attached to each person’s digital wallet.In order to incentivize the distributed network of people verifying bitcoin transactions (miners), a fee is attached to each transaction. The fee is awarded to whichever miner adds the transaction to a new block. Fees work on a first-price auction system, where the higher the fee attached to the transaction, the more likely a miner will process that transaction first.Every single bitcoin transaction that takes place has to be permanently committed to the Bitcoin blockchain ledger through a process called “mining.” Bitcoin mining refers to the process where miners compete using specialized computer equipment known as application-specific integrated circuit (ASIC) chips to unlock the next block in the chain.Unlocking blocks work as follows:Crypto mining uses a system called cryptographic hashing. This function simply takes any input (messages, words or data of any kind) and turns it into a fixed-length alphanumeric code known as a “hash.”Each input creates a completely unique hash, and it’s almost impossible to predict what inputs will create certain hashes. Even changing one character of the input will result in a totally different fixed-length code.Each new block has a value called a “target hash.” In order to win the right to fill the next block, miners need to produce a hash that is lower than or equal to the numeric value of the ‘target’ hash. Since hashes are completely random, it’s just a matter of trial and error until one miner is successful.This method of requiring miners to use machines and spend time and energy trying to achieve something is known as a proof-of-work system and is designed to deter malicious agents from spamming or disrupting the network.Whoever successfully unlocks the next block is rewarded with a set number of bitcoin known as “block rewards” and gets to add a number of transactions to the new block. They also earn any transaction fees attached to the transactions they add to the new block. A new block is discovered roughly once every 10 minutes.Bitcoin block rewards decrease over time. Every 210,000 blocks, or about once every four years, the number of bitcoin received from each block reward is halved to gradually reduce the number of bitcoin entering the space over time. As of 2021, miners receive 6.25 bitcoins each time they mine a new block. The next bitcoin halving is expected to occur in 2024 and will see bitcoin block rewards drop to 3.125 bitcoins per block. As the supply of new bitcoin entering the market gets smaller, it will make buying bitcoin more competitive – assuming demand for bitcoin remains high.Who created Bitcoin?The creator of Bitcoin, known only by the pseudonym "Satoshi Nakamoto," first proposed this revolutionary digital currency in a 2008 whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System." Satoshi devised Bitcoin as a decentralized, peer-to-peer network, able to facilitate financial transactions without a central authority like a government or bank. In doing so, Satoshi solved a key issue, the double-spending problem, by creating a proof-of-work consensus mechanism within a blockchain structure. Bitcoin's network was activated in January 2009 when Satoshi mined the first block, or the "genesis block." Despite the transformative impact of Bitcoin, Satoshi Nakamoto's identity remains shrouded in mystery, a symbol of the privacy-oriented ethos at the heart of the cryptocurrency movement.Bitcoin’s energy consumptionThe process of requiring network contributors to dedicate time and resources to creating new blocks ensures the network remains secure. But that security comes at a price. As of 2021, the Bitcoin network consumes about 93 terawatt hours (TWh) of electricity per year – around the same energy consumed by the 34th-largest country in the world.This appetite for electricity has drawn widespread criticism from celebrities such as Tesla CEO Elon Musk to government bodies such as China’s State Council and the U.S. Senate over Bitcoin’s impact on climate change. But while the electricity figures are alarmingly high, it’s important to note that bitcoin mining at most accounts for 1.29% of any single country’s energy consumption. Not to mention, Bitcoin is a complete financial system whose energy consumption can be measured and tracked, unlike the fiat system, which cannot be accurately measured and requires a range of additional layers to function, including ATMs, card machines, bank branches, security vehicles, storage facilities and huge data centers.There are also a number of initiatives including the Crypto Climate Accord and the Bitcoin Mining Council that aim to improve Bitcoin’s carbon footprint by encouraging miners to use renewable sources of energy.ManagementAs already mentioned, the Bitcoin network was created by a pseudonymous programmer, or group of programmers, known only as “Satoshi Nakamoto.” During its early development, other developers joined to work on the protocol, including cypherpunk Hal Finney, cryptographers Wei Dai and Nick Szabo and software developer Gavin Andresen.There were also a range of other developers including Pieter Wuille and Peter Todd who contributed to the development of Bitcoin Core – the first client on the Bitcoin network. A client is a piece of software that enables a network participant to run a node and connect to the blockchain.An American nonprofit called the Bitcoin Foundation was founded in 2012 to support the development and adoption of the Bitcoin protocol. After three years, however, the foundation eventually ran out of cash and was dissolved.In 2014, Adam Back, another cypherpunk and the inventor of Hashcash – a cryptographic hashing algorithm created in 1997 which used the same proof-of-work mechanism that Bitcoin would later adopt – co-founded Blockstream. Blockstream is a for-profit tech company that develops new infrastructure on the Bitcoin network, including Lightning Network and sidechains.Read less...Buy crypto on a secure, trusted platform.Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don’t invest unless you’re prepared to lose all the money you invest.Latest About BitcoinView All FinanceMstrMicroStrategy ‘Not Resting on Its Laurels’ as Bitcoin Hits All-Time High: CanaccordThe investment bank almost doubled its price target on the stock to $1,810 from $975, highest among Wall Street analysts. By Will CannySponsoredMar 12, 2024 at 3:42 p.m. UTCMar 12, 2024MSTRMicroStrategyCanaccord GenuityAnalystsFinanceBitcoin etfVanEck Spot Bitcoin ETF Sees Record $119M Inflow After Fee Cut to 0%VanEck waived the management fee for its spot bitcoin ETF for a year or until it reaches $1.5 billion in assets under management.By Krisztian SandorSponsoredMar 12, 2024 at 3:37 p.m. UTCMar 12, 2024Bitcoin ETFSpot bitcoin etfVanEckFund flowsFeesMarketsJpmorganJamie Dimon Defends Right to Buy Bitcoin Even Though He Never WillThe JPMorgan CEO has been a consistent critic of the cryptocurrency, though his latest comments suggest maybe a tiny bit of softening.By Jamie CrawleySponsoredMar 12, 2024 at 3:35 p.m. UTCMar 12, 2024JPMorganJamie DimonBitcoinFinanceMichael saylorRapper Drake Posts Michael Saylor's Bitcoin Video to His 146M Instagram FollowersMichael Saylor said that bitcoin will “eat gold” in an interview with CNBC on Monday.By Helene BraunSponsoredMar 12, 2024 at 2:31 p.m. UTCMar 12, 2024Michael SaylorBitcoinBitcoin PriceBuy / SelleToroSponsoredBuy Crypto on a Trusted PlatformTransparent, fixed, unified feed with no hidden costs. Join 30M+ users.Cryptoassets are highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.UpholdSponsoredThe easy-to-use, fully reserved and transparent crypto platformBuying crypto made simple. Instantly invest in over 265 cryptoassets with Uphold.All investments and trading are risky, and may result in the loss of capital. Cryptoassets are largely unregulated and are not subject to protection.24H Low$68,825.9424H High$72,960.4624H Open$72,612.6124H Change$1,108.1252 Week Low$23,946.0252 Week High$72,960.46All Time High$72,960.46Returns (YTD)69.03%Bitcoin Market StatsMarket Cap$1.41T24H VolumeN/AMax Supply21.00MTotal Supply21.00M24H Value TransactedN/A30D Volatility0.5770220024H Transaction Count393,00124H Average Transaction Fee$7.62Show more statsTrending AssetsView All eToroSponsoredDiscover a friendly, trusted crypto investing platformEnjoy an easy-to-use experience as you trade over 70 top cryptoassets such as Bitcoin, Ethereum, Shiba and more. Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don’t invest unless you’re prepared to lose all the money you invest. | XBXBitcoin Price Index XBXThe CoinDesk Bitcoin Price Index (XBX) is the world’s leading reference for the price of bitcoin, used by the largest institutions active in crypto assets. It is the crypto market standard, benchmarking billions of dollars in registered financial products and pricing hundreds of millions in daily over-the-counter transactions. Built for replicability and reliability, in continuous operation since 2014, the XBX is relied upon by asset allocators, asset managers, market participants and exchanges. The XBX is the flagship in a portfolio of single- and multi-asset indices offered by CoinDesk.Learn more onCoinDesk Indices BTCBitcoin$71,504.49-1.53%eToroSponsoredDiscover a friendly, trusted crypto investing platformEnjoy an easy-to-use experience as you trade over 70 top cryptoassets such as Bitcoin, Ethereum, Shiba and more. Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don’t invest unless you’re prepared to lose all the money you invest. ETHEthereum$3,969.33-2.11%BNBBinance Coin$541.375.08%SOLSolana$149.081.36%XRPXRP$0.68864273-6.67%ADACardano$0.74071405-3.96%DOGEDogecoin$0.16640216-5.57%Unmute UnchainedHow, in 7 Weeks, Bitcoin ETFs Reached Inflows That Took Gold ETFs 3 YearsEric Balchunas of Bloomberg Intelligence explains why the spot Bitcoin ETFs have made TradFi move at the speed of crypto — and why he’s uncertain spot Ether ETFs will be approved Read more...Watch CoinDesk TV|View all videoseToroSponsoredBuy crypto with FREE cold storageYour top cryptoassets deserve top-tier security. Own a wide variety of cryptos on a trusted and safe platform. Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. 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What Is Bitcoin?

Understanding Bitcoin

Bitcoin's Blockchain Technology

How to Mine Bitcoin

How to Buy Bitcoin

How Is Bitcoin Used?

Risks of Investing in Bitcoin

Regulating Bitcoin

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What Is Bitcoin?

Bitcoin (BTC) is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for third-party involvement in financial transactions. It is rewarded to blockchain miners for verifying transactions and can be purchased on several exchanges.

Bitcoin was introduced to the public in 2009 by an anonymous developer or group of developers using the name Satoshi Nakamoto.

It has since become the most well-known cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies.

Learn more about the cryptocurrency that started it all—the history behind it, how it works, how to get it, and what it can be used for.

Key Takeaways

Launched in 2009, bitcoin is the world's largest cryptocurrency by market capitalization.

Unlike fiat currency, bitcoin is created, distributed, traded, and stored using a decentralized ledger system known as a blockchain.

Bitcoin and its ledger are secured by the number of participants in its network and in the way it confirms and verifies transactions.

Bitcoin can be purchased via various cryptocurrency exchanges.

Bitcoin's history as a store of value has been turbulent; it has undergone several boom and bust cycles over its relatively short lifespan.

Julie Bang

Understanding Bitcoin

In August 2008, the domain name Bitcoin.org was registered. It was created by Satoshi Nakamoto and Martti Malmi, who worked with the anonymous Nakamoto to develop Bitcoin.

Announcement

In October 2008, a person or group using the false name Satoshi Nakamoto announced to the cryptography mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party." This now-famous white paper published on Bitcoin.org, entitled "Bitcoin: A Peer-to-Peer Electronic Cash System," would become the Magna Carta for how Bitcoin operates today.

First Block

On Jan. 3, 2009, the first Bitcoin block was mined—Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps proof that the block was mined on or after that date.

Rewards

Bitcoin rewards are halved every 210,000 blocks. For example, the block reward was 50 new bitcoins in 2009. On May 11, 2020, the third halving occurred, bringing the reward for each block discovery down to 6.25 bitcoins. The next halving is expected to occur sometime in 2024, bringing the reward down to 3.125 bitcoins.

Denominations

One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a satoshi.

On Jan. 8, 2009, the first version of the Bitcoin software was announced to the Cryptography Mailing List, and on Jan. 9, 2009, Block 1 was mined, and bitcoin mining began.

Bitcoin's Blockchain Technology

Bitcoin isn't too complicated to understand as a form of digital currency. For example, if you own a bitcoin, you can use your cryptocurrency wallet to send smaller portions of that bitcoin as payment for goods or services. However, it becomes very complex when you try to understand how it works.

Blockchain

A blockchain is a distributed ledger, a shared database of information that is chained together via cryptographic techniques. "Distributed" means that it is stored on many computers rather than on a centralized server, as is typical of data storage. A network of automated programs installed on these computers maintains the blockchain and performs the functions necessary for it to operate.

A block on a blockchain can be compared to a cell in a spreadsheet that contains a block header, transaction counter, and the transactions recorded in the block. The transaction counter lists how many transactions are in the block, while the block header is made up of several elements:

Software version: Which version the blockchain is running

Previous block hash: The encrypted information from the previous block

Merkle root: A single hash (encrypted information) that contains all the hashed information from previous transactions

Timestamp: The time the block was opened

Difficulty target: The current network difficulty problem miners are attempting to solve for

Nonce: Short for "number used once," which is used to solve the mining problem and open the block.

Each block contains the hashed information of the previous block. This creates a chain of encrypted blocks that contain information from blocks all the way back to the first block of the blockchain.

Data linked—or chained—between blocks led to the ledger being called a blockchain.

Encryption

Bitcoin uses the SHA-256 hashing algorithm to encrypt the data stored in the blocks on the blockchain. Simply put, transaction data stored in a block is encrypted into a 256-bit (78-digit) hexadecimal number. That number contains all the transaction data and information linked to the blocks before that block.

How to Mine Bitcoin

A variety of hardware and software can be used to mine bitcoin. When the Bitcoin blockchain was first released, it was possible to mine it competitively on a personal computer; however, as it became more popular, more miners joined the network, which lowered the chances of being the one to solve the hash. You can still use your personal computer as a miner if it has newer hardware, but the chances of solving a hash individually using a home computer are minuscule.

This is because you're competing with a network of miners that generate around 560 quintillion hashes (on Feb. 24, 2024) per second. Machines—called Application Specific Integrated Circuits (ASICs), have been built specifically for mining—can generate more than 300 trillion hashes per second. In contrast, a computer with the latest hardware hashes around 100 megahashes per second (100 million).

To successfully become a bitcoin miner, you have several options. You can use your existing computer to use mining software compatible with Bitcoin software and join a mining pool. Mining pools are groups of miners that combine their computational power to compete with large ASIC mining farms.

You can increase your chances of being rewarded by joining a pool, but rewards are significantly decreased because they are shared.

If you have the financial means, you could purchase an ASIC miner. You can generally find a new one for around $10,000, but used ones are also sold by miners as they upgrade their systems. There are some significant costs, such as electricity and cooling, to consider if you purchase one or more ASICs. Keep in mind using one or two ASICs is still no guarantee of rewards as you're competing with large mining farms of hundreds, if not thousands, of ASICs.

There are several mining programs to choose from and many pools you can join. Two of the most well-known programs are CGMiner and BFGMiner. Some of the most popular pools are Foundry Digital, Antpool, F2Pool, ViaBTC, and Binance.com.

When choosing a pool, it's important to make sure you find out how they pay out rewards, what any fees might be, and read some mining pool reviews.

How Do You Buy Bitcoin?

If you don't want to mine bitcoin, it can be bought using a cryptocurrency exchange. Most people will be unable to purchase an entire BTC because of its price, but you can buy portions of BTC on these exchanges in fiat currency, like U.S. dollars. For example, you can bitcoin on Coinbase by creating and funding an account. You can fund your account using your bank account, credit card, or debit card. The following video explains more about buying bitcoin.

How to Buy Bitcoin

How Is Bitcoin Used?

Bitcoin was initially designed and released as a peer-to-peer payment method. However, its use cases are growing due to its increasing value, competition from other blockchains and cryptocurrencies, and developments on blockchains that process information for the Bitcoin blockchain.

Payment

To use your bitcoin, you need to have a cryptocurrency wallet. Wallets are your interface to the blockchain and can hold the private keys to the bitcoin you own, which must be entered when you're conducting a transaction. Bitcoin is accepted as a means of payment for goods and services at many merchants, retailers, and stores.

Brick-and-mortar stores that accept cryptocurrencies will generally display a sign that says “Bitcoin Accepted Here”; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touchscreen apps. An online business can easily accept bitcoin by adding this payment option to its other online payment options: credit cards, PayPal, etc.

Investing and Speculating

Investors and speculators became interested in bitcoin as it grew in popularity. Between 2009 and 2017, cryptocurrency exchanges emerged that facilitated bitcoin sales and purchases. Prices began to rise, and demand slowly grew until 2017, when its price broke $1,000. Many people believed bitcoin prices would keep climbing and began buying them as long-term investments. Traders began using cryptocurrency exchanges to make short-term trades, and the market took off.

After reaching a high of about $69,000 in November 2021, bitcoin's price crashed in 2022. In March 2022, it was as high as $47,454—by November 2022, it was $15,731. It then recovered in 2023, seeing a price as high as $31,474 before dropping back below $30,000. By early 2024, bitcoin's price had jumped into the mid $40,000s as expectations grew for Bitcoin Spot ETFs approval loomed. By mid-February 2024, after the ETFs were approved, and bitcoin's price climbed to more than $50,000.

Bitocin prices tend to follow stock market trends because bitcoin is treated the same way investors treat other investments. However, bitcoin price movements are greatly exaggerated and sometimes are prone to movements of thousands of dollars. Many bitcoin investors tend to "trade the news," as demonstrated by the fluctuations that occur whenever there is a significant news event.

Risks of Investing in Bitcoin

Bitcoin had a price of $7,167.52 on Dec. 31, 2019, and a year later, it had appreciated more than 300% to $28,984.98. It continued to surge in the first half of 2021, trading at a record high of $69,000 in November 2021—it then fell over the next few months to hover around $40,000.

Bitcoin's all-time high price is $69,000, reached on Nov. 10, 2021.

Thus, many people purchase bitcoin for its investment value rather than its ability to act as a medium of exchange. However, the lack of guaranteed value and its digital nature means its purchase and use carry several inherent risks. For example, many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Consumer Financial Protection Bureau (CFPB) regarding bitcoin investing. Here are some of the risks you're exposed to when trading or investing in bitcoin:

Regulatory risk: The continuous battle between cryptocurrency-related projects and regulators makes longevity and liquidity an unknown. As of February 2024, bitcoin is not considered a security by the authorities, but that stance could change in the future.

Security risk: Most individuals who own and use bitcoin have not acquired their tokens through mining operations. Rather, they buy and sell bitcoin and other digital currencies on popular online markets called cryptocurrency exchanges. These exchanges are entirely digital and are at risk from hackers, malware, and operational glitches.

Insurance risk: Bitcoin and cryptocurrencies are not insured through the Securities Investor Protection Corporation (SIPC) or the Federal Deposit Insurance Corporation (FDIC), but some exchanges provide insurance through third parties. For instance, Gemini and Coinbase offer cryptocurrency insurance, but only for failures in their systems or cybersecurity breaches. However, any cash deposits you've made at either exchange might be eligible for "pass-through" FDIC coverage.

Fraud risk: Even with the security measures inherent within a blockchain, there are still opportunities for fraudulent activity.

Market risk: As with any investment, bitcoin values can fluctuate. Indeed, the currency's value has seen wild price swings over its short existence. Subject to high volume buying and selling on exchanges, it is highly sensitive to any newsworthy events.

Regulating Bitcoin

Like any new technology, the attempts at regulating bitcoin have been difficult. The U.S. administration seeks to impose regulations around bitcoin but, at the same time, walks a tightrope in trying not to throttle a growing and economically beneficial industry. Enforcement agencies in the U.S. continue to rely on existing securities, commodities, and tax laws, but as of February 2024, no attempts from legislators have gained much attention from the country's law-making bodies.

The European Commission entered its long-anticipated Markets in Crypto Assets legislation into force in 2023, setting the stage for cryptocurrency regulations in the European Union.

India banned several exchanges in December 2023 and continues to push back reviews of any legislation regarding bitcoin and other cryptocurrencies.

How Long Does It Take to Mine One Bitcoin?

It takes an average of 10 minutes for the mining network to validate a block and create the reward. The bitcoin reward is 6.25 BTC per block. The block reward halves every four years, so when the next halving occurs in mid-2024, the reward will be 3.125 BTC every 10 minutes.

Is Bitcoin a Good Investment?

Bitcoin has a short investing history filled with very volatile prices. Whether it is a good investment depends on your financial profile, investing portfolio, risk tolerance, and investing goals. You should always consult a financial professional for advice before investing in cryptocurrency to ensure it is right for your circumstances.

How Does Bitcoin Make Money?

Miners on the Bitcoin network can be rewarded by successfully opening blocks. Bitcoins are exchangeable for fiat currency via cryptocurrency exchanges. Investors and speculators can make money from trading bitcoins.

How Many Bitcoins Are Left?

The total number of bitcoins in existence was 19.64 million on Feb. 24, 2024. The number left to be mined was about 1.36 million.

The Bottom Line

Bitcoin was the first cryptocurrency introduced to the public and is intended to be used as a form of payment outside of legal tender. Since its introduction in 2009, bitcoin's popularity has surged, and its blockchain uses have expanded.

Though the process of generating bitcoin is complex, investing in it is more straightforward. Investors and speculators can buy and sell bitcoin on crypto exchanges. As with any investment, particularly one as new and volatile as bitcoin, investors should carefully consider if bitcoin is the right investment for them.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own cryptocurrency.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our

editorial policy.

Bitcoin Project. "Bitcoin Is 10 Years Old!"

Metzdowd.com. "Bitcoin P2P E-Cash Paper."

Satoshi Nakamoto. "Bitcoin: A Peer-to-Peer Electronic Cash System."

Bitcoin.com. "10 Years Ago Bitcoin's Genesis Block Changed the Course of History."

Blockchain.com. "Bitcoin Total Hash Rate."

Google Finance. "Bitcoin to United States Dollar."

CoinMarketCap. "Bitcoin BTC."

TradingView. "Bitcoin / U.S. Dollar."

Coinbase. "Insurance."

Gemini. "Digital Assets Insurance."

Brookings. "The Competing Priorities Facing U.S. Crypto Regulations."

Congress.gov. "Crypto-Asset National Security Enhancement and Enforcement Act of 2023."

Congress.gov. "Digital Asset Anti-Money Laundering Act of 2023."

European Securities and Markets Authority. "Markets in Crypto-Assets Regulation (MiCA)."

India Ministry of Finance. "Financial Intelligence Unit India (FIU IND) Issues Compliance Show Cause Notices to Nine Offshore Virtual Digital Assets Service Providers (VDA SPs)."

Blockchain.com. "Total Circulating Bitcoin."

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Related Terms

What Is Bitcoin Mining?

Breaking down everything you need to know about Bitcoin mining, from blockchain and block rewards to proof of work and mining pools.

Nonce: What It Means and How It's Used in Blockchain

A nonce is an encrypted number uniquely identifying a block in a blockchain. Miners rush to decipher the nonce to generate new blocks, confirm transactions, and enhance network security.

Genesis Block: Bitcoin Definition, Mysteries, and Secret Message

The Genesis Block is what the Bitcoin community calls the first block created for the Bitcoin blockchain. It contained a message and the first transaction.

What Is Bitcoin Halving? Definition, How It Works, Why It Matters

Bitcoin halving explained. Find out about Bitcoin's halving process works and what it means for Bitcoin's price and its users.

Mining Pool: Definition, How It Works, Methods, and Benefits

A mining pool is a group of cryptocurrency miners who combine their computational resources over a network.

Hash Rate: How It Works and How to Measure

Hash rate is the measure of the computational power in a proof-of-work (PoW) cryptocurrency miner, pool, or network. High hash rates equal better odds of winning.

Is Bitcoin Mining Profitable?

How Do You Mine Litecoin (LTC)?

What Is Bitcoin Mining?

Nonce: What It Means and How It's Used in Blockchain

Genesis Block: Bitcoin Definition, Mysteries, and Secret Message

How Does Bitcoin Mining Work?

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BTCUSD chartPriceMarket CapMoreToday−0.55%Week4.92%1 month50.14%6 months173.44%Year to date69.72%1 year223.21%5 years1763.78%All time657881.65%Key statsMarket capitalization‪1.41 T‬USDFully diluted market cap‪1.51 T‬USDTrading volume 24h‪54.43 B‬USDVolume / Market Cap0.0450All time high70184USDCirculating supply‪19.65 M‬Max supply‪21.00 M‬Total supply‪19.65 M‬About BitcoinCategoryCryptocurrenciesWebsitebitcoin.orgSource codeGitHubExplorersblockchair.comWhitepaperbitcoin.orgCommunityRedditBitcoin is the world’s most traded cryptocurrency, and represents the largest piece of the crypto market pie. It was the first digital coin and as such, remains the most famous and widely-adopted cryptocurrency in the world. It's the original gangster in whose footsteps all other coins follow. The birth of Bitcoin was the genesis of an entirely new asset class, and a huge step away from traditional, centrally controlled money. Today, many advocates believe Bitcoin will facilitate the next stage for the global financial system, although this — of course — remains to be seen.Show moreIdeasBitcoin is still behaving like a risk assetAfter reaching a new all-time high yesterday, Bitcoin underwent a mini flash crash, erasing more than 14% in less than five hours and falling below $60,000. Nevertheless, it took only a few more hours for Bitcoin to recover and get back above the $66,000 handle, where it currently trades. The numberEditors' picksby TradersweeklyUpdated 94941.4KBITCOIN POTENTIAL $4k Target On Potential Major BEARISH FLATThis sort of pattern would certainly shock the herd. A potential Wave B suckers Rally galore .Then SNAP into a horrific wave C thrust bringing price right into the proximity of the prior wave 4 symmetrical triangle. There's also what appears to be a potential H&S top right shoulder forming in Wave Bby noble1onesUpdated 307307457Mindfulness : The Zen approach to Trading SuccessMindfulness is a practice that involves being fully present and engaged in the moment, aware of your thoughts and feelings without judgment. It originates from ancient Buddhist meditation practices but has been adopted widely in various forms across the world for its mental health benefits. In thisEditors' picksEducationby Nico.Muselle3434820Bitcoin: Failed High Or 80K?Bitcoin first pushes all time highs earlier in the week, followed by a 10K point retrace, only the climb back to the top and push the highs again. Wild price action for sure, but what does this mean in terms of the probability of continuing higher?

The fact that price retraced 10K points in one dayEditors' picksby MarcPMarkets4646444BITCOIN → What's next? 50K or 75-80K? Is bitcoin still strong?BINANCE:BTCUSD reaches ATH a bit faster than everyone expected. The correction reaches 14% after which the market actively redeems all the fall and tests the resistance again. Growing further? What is happening?

It is not excluded that a fall is possible, because at least the normal reaction to Longby RLindaUpdated 4848228What Are Cryptocurrency Bear and Bull Traps?What Are Cryptocurrency Bear and Bull Traps?

In volatile crypto markets, traders must contend with many challenges. One of the most common is the bear and bull trap, which can quickly catch traders off-guard if they aren’t careful. In this FXOpen article, we’ll explore how these traps work, providEditors' picksEducationby FXOpen88377TradingView Screener Update - Now with CHART views !!!This has to be one of the best updates on TradingView in a while - certainly from my perspective.

The TradingView Screener was what initially brought me to using TradingView to be able to quickly and easily filter thousands of stocks down to just the handful that met my criteria and that I wanted tEditors' picksEducation19:59by zAngus1212317️ Correction Preview: Are You Prepared?-14% in a single candle; in a single day, in a matter of hours... How can we use this information?

Were you prepared?

If Bitcoin with its 1.3T market capitalization can drop 14% within hours, how much can it drop in a week? How far down can Bitcoin go in 2-3 weeks?

Let us consider this question tby AlanSantana343456Did the BTC uptrend fail in 2022?Let me first say I don't want to argue with BTC bulls. All I want to do is to discuss the properties of trends. We happen to be relating them to BTC and happen to be looking at a bear trend.

In the last new high and drop in BTC something new happened. BTC made a bog drop and when a new high was maShortby holeyprofitUpdated 380380342Crypto Trading and Problem Gambling: What Does Science Say?In discussions with BTC bulls in a couple of posts I've had here recently it occurred to me many of them show signs of problem gambling.

I mentioned this to them a few times and they told me BTC isn't gambling.

But from the perspective of someone who's been in trading a long time, I think we'd dby holeyprofitUpdated 646414See all ideas News FlowKeep readingKeep readingTechnicalsSummarizing what the indicators are suggesting.OscillatorsNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buyOscillatorsNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buySummaryNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buySummaryNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buySummaryNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buyMoving AveragesNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buyMoving AveragesNeutralSellBuyStrong sellStrong buyStrong sellSellNeutralBuyStrong buySparksCurated watchlists where BTCUSD is featured.Gen 1 crypto: from little acorns grow 16 No. of Symbols Proof of Work: Embracing the crunch 27 No. of Symbols See all sparks Create lists in ScreenerRelated symbolsBTCEURBitcoin / EuroBTCEURBTCJPYBitcoin / Japanese YenBTCJPYETHBTCEthereum / BitcoinETHBTCXRPBTCXRP / BitcoinXRPBTCBTCGBPBitcoin / British PoundBTCGBPBTC1!Bitcoin CME FuturesBTC1!BTCAUDBitcoin / Australian DollarBTCAUDFrequently Asked QuestionsWhat is Bitcoin lowest price ever?Bitcoin (BTC) reached the lowest price of 2 USD on Oct 20, 2011. See the list of crypto losers to find unexpected opportunities.What is Bitcoin market cap?The current market capitalization of Bitcoin (BTC) is ‪1.40 T‬ USD. To see this number in a context check out our list of crypto coins ranked by their market caps or see crypto market cap charts.What is Bitcoin circulating supply?The current circulating supply of Bitcoin (BTC) is ‪19.65 M‬ USD. To get a wider picture you can check out our list of coins with the highest circulating supply, as well as the ones with the lowest number of tokens in circulation.What is Bitcoin highest price ever?Bitcoin (BTC) reached its highest price on Mar 8, 2024 — it amounted to 70184 USD. See the list of crypto gainers and choose what best fits your strategy.

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What is Bitcoin? The Basics of Bitcoin Explained

is Bitcoin? The Basics of Bitcoin Explained

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They called it Bitcoin.By Andrey SergeenkovUpdated Jun 8, 2023 at 4:50 p.m. UTCShare on FacebookShare on LinkedInShare on XBeginnerQuick TakesBitcoin, introduced in 2008 by an anonymous creator known as Satoshi Nakamoto, is a decentralized, digital currency exchanged through a peer-to-peer network without centralized authorities.It's the world's first decentralized cryptocurrency, using blockchain technology to secure and verify transactions.The Bitcoin network is public and open-source, meaning anyone can participate.Bitcoin combines its network, cryptocurrency, and blockchain to record transactions transparently, prevent double spending, and ensure consensus via a process called "proof-of-work".What is Bitcoin?Bitcoin is the world’s first successful decentralized cryptocurrency and payment system, launched in 2009 by a mysterious creator known only as Satoshi Nakamoto. The word “cryptocurrency” refers to a group of digital assets where transactions are secured and verified using cryptography – a scientific practice of encoding and decoding data. Those transactions are often stored on computers distributed all over the world via a distributed ledger technology called blockchain (see below.)Bitcoin can be divided into smaller units known as “satoshis” (up to 8 decimal places) and used for payments, but it’s also considered a store of value like gold. This is because the price of a single bitcoin has increased considerably since its inception – from less than a cent to tens of thousands of dollars. When discussed as a market asset, bitcoin is represented by the ticker symbol BTC.The term “decentralized” is used often when discussing cryptocurrency, and simply means something that is widely distributed and has no single, centralized location or controlling authority. In the case of bitcoin, and indeed many other cryptocurrencies, the technology and infrastructure that govern the creation, supply, and security of it do not rely on centralized entities, like banks and governments, to manage it.colorful pins on boardInstead, Bitcoin is designed in such a way that users can exchange value with one another directly through a peer-to-peer network; a type of network where all users have equal power and are connected directly to each other without a central server or intermediary company acting in the middle. This allows data to be shared and stored, or bitcoin payments to be sent and received seamlessly between parties.The Bitcoin network (capital “B”, when referring to the network and technology, lower-case “b” when referring to the actual currency, bitcoin) is completely public, meaning anyone in the world with an internet connection and a device that can connect to it can participate without restriction. It’s also open-source, meaning anyone can view or share the source code Bitcoin was built upon.Perhaps the easiest way to understand bitcoin is to think of it like the internet for money. The internet is purely digital, no single person owns or controls it, it’s borderless (meaning anyone with electricity and a device can connect to it), it runs 24/7, and people who use it can easily share data between one another. Now imagine if there was an ‘internet currency’ where everyone who used the internet could help to secure it, issue it and pay each other directly with it without having to involve a bank. That’s what bitcoin essentially is.An alternative to fiat currencyNakamoto originally designed bitcoin as an alternative to traditional money, with the goal for it to eventually become a globally accepted legal tender so people could use it to purchase goods and services.However, bitcoin’s utility for payments has been stymied somewhat by its price volatility. Volatility is a word used to describe how much an asset’s price changes over a period of time. In the case of bitcoin, its price can change dramatically day to day – and even minute to minute – making it a less than ideal payment option. For example, you wouldn’t want to pay $3.50 for a cup of coffee and 5 minutes later it’s worth $4.30. Conversely, it doesn’t work out great for merchants either if bitcoin’s price falls dramatically after the coffee’s handed over.In many ways, bitcoin works in the opposite way as traditional money: It is not controlled or issued by a central bank, it has a fixed supply (which means new bitcoins cannot be created at will) and it’s price is not predictable. Understanding these differences is the key to understanding bitcoin.How does Bitcoin work?It’s important to understand there are three separate components to Bitcoin, all of which combine together to create a decentralized payment system:The Bitcoin networkThe native cryptocurrency of the Bitcoin network, called bitcoin (BTC)The Bitcoin blockchainBitcoin runs on a peer-to-peer network where users — typically individuals or entities who want to exchange bitcoin with others on the network — do not require the help of intermediaries to execute and validate transactions. Users can choose to connect their computer directly to this network and download its public ledger in which all the historical bitcoin transactions are recorded.This public ledger uses a technology known as “blockchain,” also referred to as “distributed ledger technology.” Blockchain technology is what allows cryptocurrency transactions to be verified, stored and ordered in an immutable, transparent way. Immutability and transparency are vitally important credentials for a payment system that relies on zero trust.Whenever new transactions are confirmed and added to the ledger, the network updates every user’s copy of the ledger to reflect the latest changes. Think of it as an open Google document that updates automatically when anyone with access edits its content.As its name implies, the Bitcoin blockchain is a digital string of chronologically ordered “blocks” — chunks of code that contain bitcoin transaction data. However, it is important to mention that validating transactions and bitcoin mining are separate processes. Mining can still occur whether transactions are added to the blockchain or not. Likewise, an explosion in Bitcoin transactions does not necessarily increase the rate at which miners find new blocks.Irrespective of the volume of transactions waiting to be confirmed, the Bitcoin is programmed to allow new blocks to be added to the blockchain approximately once every 10 minutes.Due to the public nature of the blockchain, all network participants can track and assess bitcoin transactions in real-time. This infrastructure reduces the possibility of an online payment issue known as double-spending. Double spending occurs when a user tries to spend the same cryptocurrency twice.Bob, who has 1 bitcoin, might try to send it to both Rishi and Eliza at the same time and hope the system doesn’t spot it.Double spending is prevented in the traditional banking system because reconciliation is performed by a central authority. It also isn’t a problem with physical cash because you can’t hand two people the same single dollar bill.“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending”Satoshi NakamotoBitcoin, however, has thousands of copies of the same ledger and so it requires the entire network of users to unanimously agree on the validity of each and every bitcoin transaction that takes place. This agreement between all parties is what’s known as “consensus.”Just as banks constantly update the balances of their users, everyone that has a copy of the Bitcoin ledger is responsible for confirming and updating the balances of all bitcoin holders. So, the question is: How does the Bitcoin network ensure that consensus is achieved, even though there are countless copies of the public ledger stored all over the world? This is done through a process known as “proof-of-work.”What is proof-of-work?Computers in the Bitcoin network use a process called proof-of-work (PoW) to validate transactions and secure the network. Proof-of-work is the Bitcoin blockchain’s “consensus mechanism.”While Proof-of-Work was the first and is generally the most common type of consensus mechanism for cryptocurrencies that run on blockchains, there are others — most notably proof-of-stake (PoS), which tends to consume less overall computing power (and therefore less energy).Proof-of-work elevates certain network contributors to the role of “validators” – more commonly known as “miners” – only after they have proven their commitment to the network by dedicating an immense amount of computing power to discovering new blocks — a process that typically takes approximately 10 minutes.When a new block is discovered, the successful miner who found it through the mining process gets to fill it with 1 megabyte’s worth of validated transactions. This new block is then added to the chain and everyone’s copy of the ledger is updated to reflect the new data. In exchange for their efforts, the miner is allowed to keep any fees attached to the transactions they add, plus they’re given an amount of newly minted bitcoin. The new bitcoin created and handed to successful miners is known as a “block reward.”All Bitcoin users have to pay a network fee each time they send a transaction (usually based on the size of it) before the payment can be queued for validation. Think of it like buying a stamp to post a letter.The goal when adding a transaction fee is to match or exceed the average fee paid by other network participants so your transaction is processed in a timely manner. Miners have to cover their own electricity and maintenance costs when running their machines all day to validate the bitcoin network, so they prioritize transactions with the highest fees attached to make the most money possible when filling new blocks.You can view the average fees on the Bitcoin mempool, which can be likened to a waiting room where unconfirmed transactions are held until they are selected and added to the blockchain by miners.How is bitcoin created?The Bitcoin network automatically releases newly minted bitcoin to miners when they find and add new blocks to the blockchain. The total supply of bitcoin has a cap of 21 million coins, meaning once the number of coins in circulation reaches 21 million, the protocol will stop minting new coins. In a way, Bitcoin mining doubles as both the transaction validation and the bitcoin issuance process (until all the coins are mined, then it will only function as the transaction validation process.)Importantly, increasing the amount of computing power dedicated to bitcoin mining will not mean more bitcoins are mined. Miners with more computing power only increase their chances of being rewarded with the next block, so the amount of bitcoin mined remains relatively stable over time.The Bitcoin network uses a coin distribution strategy known as “bitcoin halving” that ensures the amount of bitcoin distributed to miners reduces over time. By gradually decreasing the supply of new bitcoin entering circulation, the idea is it will help support the asset’s price (based on the fundamental principles of supply and demand.)A bitcoin halving (sometimes called a “halvenings”) happens every 210,000 blocks or roughly four years. When the bitcoin protocol first launched in 2009, each successful miner received 50 bitcoin (BTC) as a block reward. Fast forward to 2021: Block rewards are now 6.25 BTC, a reduction from 12.5 BTC prior to the bitcoin halving in May 2020.The next halving is expected to take place sometime in 2024 and will see block rewards drop again, to 3.125 BTC. This process will continue until eventually there are no more coins left to be mined.Today, there are over 18.7 million BTC in circulation meaning there are just 2.25 million BTC left to enter circulation. However, taking into consideration the halving principle and other network factors like mining difficulty, it’s estimated the last bitcoin will be mined sometime around the year 2140.“As computers get faster and the total computing proof-of-worker applied to creating bitcoins increases, the difficulty increases proportionally to keep the total new production constant. Thus, it is known in advance how many new bitcoins will be created every year in the future.”Satoshi NakamotoHow to mine bitcoinBitcoin mining is a process that adds transactions to the blockchain and mints new Bitcoin. It involves solving complex mathematical problems using powerful, specialized computer hardware. There was a time in history when it was reasonable to mine bitcoin from your own home, but as the computational hardware requirements have grown, most people entering the space will typically join a mining pool, which is a group of miners pooling resources for greater efficiency.Miners utilize hardware—often Application-Specific Integrated Circuits (ASICs)—to solve these problems. This process is competitive; the first to solve the problem adds the next block to the blockchain and receives a Bitcoin reward.Bitcoin mining is not easy. It's extremely energy-intensive, leading to high electricity costs and substantial heat generation so cooling solutions are a must-have for mining hardware. There's also a substantial upfront investment in equipment, and profitability isn't guaranteed due to the volatile nature of Bitcoin's price and the ever-increasing mining difficulty. Lastly, regulatory scrutiny or bans in certain regions due to environmental or other concerns can pose challenges, so always check local laws before starting. Despite the risks, Bitcoin mining can be potentially profitable for those with the right setup and understanding of the risks.Read more: How Bitcoin Mining WorksWhat is a bitcoin wallet?A bitcoin wallet is a software program that runs on a computer or a dedicated device that provides the functionality required to secure, send and receive bitcoin. Counterintuitively, the bitcoin itself is not stored in a wallet. Instead, the wallet secures the cryptographic keys — essentially a very specialized type of password — that proves the ownership of a specific amount of bitcoin on the Bitcoin network.Anytime a bitcoin transaction is executed, ownership of the bitcoin transfers from the sender to the recipient, with the network designating the recipient’s keys as the new “password” for accessing the bitcoin.Bitcoin uses a system called public-key cryptography (PKC) to preserve the integrity of its blockchain. Originally used to encrypt and decrypt messages, PKC is now commonly used on blockchains to secure transactions. This system allows only individuals with the right set of keys to access specific coins.There are two types of keys required to own and execute bitcoin transactions: A private key and a public key. Both keys are strings of randomly generated alphanumeric characters used to encrypt and decrypt transactions. On the bitcoin network, PKC implements one-way mathematical functions that are easy to solve in one way and almost impossible to reverse.The blockchain uses the one-way mathematical algorithm to create a public key from the private key. With this, it is practically impossible to regenerate the private key from the public key, meaning you’d better not lose your keys (or forget your password to access them). Also, you will receive a public address, which is simply the hashed or shorter form of your public key.This address functions similarly to a house address and is shared to receive bitcoin. On the other hand, the private key must be kept hidden from prying eyes, just as your debit card’s PIN is meant for your eyes alone.To execute transactions, you are required to use your private key and public key to encrypt and sign your Bitcoin transactions. Also, you have to include the public address of the recipient. With this, only the recipient with the right private key can unlock or claim the transferred bitcoin.This article was originally published on Jan 26, 2022 at 4:33 p.m. UTCDisclosurePlease note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.Andrey SergeenkovAndrey Sergeenkov is a freelance writer whose work has appeared in many cryptocurrency publications, including CoinDesk, Coinmarketcap, Cointelegraph and Hackermoon. He holds BTC and ETH. Follow @Nikopolos on TwitterLearn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.AboutAboutMastheadCareersCoinDesk NewsStay UpdatedConsensusCoinDesk StudiosNewslettersFollowGet In TouchContact UsAdvertiseAccessibility HelpSitemapThe Fine PrintEthics PolicyPrivacyTerms of UseUpdate My Cookie ConsentDo Not Sell My Personal InformationPlease note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.©2024 CoinDeskEnglishX iconFacebook iconLinkedin iconRSS L

Bitcoin - Wikipedia

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1History

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1.1Background

1.22008–2009: Creation

1.32010–2012: Early growth

1.42013–2014: First regulatory actions

1.52015–2019

1.62020–present

2Design

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2.1Units and divisibility

2.2Blockchain

2.3Addresses and transactions

2.4Mining

2.5Privacy and fungibility

2.6Wallets

2.7Scalability and decentralization challenges

3Economics and usage

Toggle Economics and usage subsection

3.1Bitcoin's theoretical roots and ideology

3.2Recognition as a currency and legal status

3.3Use for payments

3.4Use for investment and status as an economic bubble

4See also

5Notes

6References

7Further reading

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Bitcoin

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From Wikipedia, the free encyclopedia

Decentralized digital currency

For the colloquial expression for coinage, see Bit (money).

"₿" redirects here. Not to be confused with "฿" for Thai baht.

BitcoinLogo of BitcoinDenominationsPluralBitcoinsSymbol₿(Unicode: U+20BF ₿ BITCOIN SIGN)[1]CodeBTC[a]Precision10−8Subunits 1⁄1000Millibitcoin 1⁄1000000Microbitcoin 1⁄100000000Satoshi[b][2]DevelopmentOriginal author(s)Satoshi NakamotoWhite paper"Bitcoin: A Peer-to-Peer Electronic Cash System"Implementation(s)Bitcoin CoreInitial release0.1.0 / 9 January 2009 (15 years ago) (2009-01-09)Latest release25.1 / 19 October 2023 (4 months ago) (2023-10-19)[3]Code repositorygithub.com/bitcoin/bitcoinDevelopment statusActiveWritten inC++Source modelFree and open-source softwareLicenseMIT LicenseLedgerLedger start3 January 2009 (15 years ago) (2009-01-03)Timestamping schemeProof of work (partial hash inversion)Hash functionSHA-256 (two rounds)Issuance scheduleDecentralized (block reward)Initially ₿50 per block, halved every 210,000 blocksBlock reward₿6.25 (as of 2023[update])Block time10 minutesCirculating supply₿19,591,231 (as of 6 January 2024[update])Supply limit₿21,000,000[c]ValuationExchange rateFloatingDemographicsOfficial user(s)El Salvador[4]

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Bitcoin (abbreviation: BTC[a]; sign: ₿) is the first decentralized cryptocurrency. Nodes in the peer-to-peer bitcoin network verify transactions through cryptography and record them in a public distributed ledger, called a blockchain, without central oversight. Consensus between nodes is achieved using a computationally intensive process based on proof of work, called mining, that requires increasing quantities of electricity and guarantees the security of the bitcoin blockchain.[5]

Based on a free market ideology, bitcoin was invented in 2008 by Satoshi Nakamoto, an unknown person.[6] Use of bitcoin as a currency began in 2009,[7] with the release of its open-source implementation.[8]: ch. 1 In 2021, El Salvador adopted it as legal tender.[4] Bitcoin is currently used more as a store of value and less as a medium of exchange or unit of account. It is mostly seen as an investment and has been described by many scholars as an economic bubble.[9] As bitcoin is pseudonymous, its use by criminals has attracted the attention of regulators, leading to its ban by several countries as of 2021[update].[10]

History

Main article: History of bitcoin

Background

Before bitcoin, several digital cash technologies were released, starting with David Chaum's ecash in the 1980s.[11] The idea that solutions to computational puzzles could have some value was first proposed by cryptographers Cynthia Dwork and Moni Naor in 1992.[11] The concept was independently rediscovered by Adam Back who developed Hashcash, a proof-of-work scheme for spam control in 1997.[11] The first proposals for distributed digital scarcity-based cryptocurrencies came from cypherpunks Wei Dai (b-money) and Nick Szabo (bit gold) in 1998.[12] In 2004, Hal Finney developed the first currency based on reusable proof of work.[13] These various attempts were not successful:[11] Chaum's concept required centralized control and no banks wanted to sign on, Hashcash had no protection against double-spending, while b-money and bit gold were not resistant to Sybil attacks.[11]

2008–2009: Creation

External image Cover page of The Times 3 January 2009 showing the headline used in the genesis block

Bitcoin logos made by Satoshi Nakamoto in 2009 (left) and 2010 (right) depict bitcoins as gold tokens.

The domain name bitcoin.org was registered on 18 August 2008.[14] On 31 October 2008, a link to a white paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list.[15] Nakamoto implemented the bitcoin software as open-source code and released it in January 2009.[7] Nakamoto's identity remains unknown.[6] All individual components of bitcoin originated in earlier academic literature.[11] Nakamoto's innovation was their complex interplay resulting in the first decentralized, Sybil resistant, Byzantine fault tolerant digital cash system, that would eventually be referred to as the first blockchain.[11][16] Nakamoto's paper was not peer reviewed and was initially ignored by academics, who argued that it could not work, based on theoretical models, even though it was working in practice.[11]

On 3 January 2009, the bitcoin network was created when Nakamoto mined the starting block of the chain, known as the genesis block.[17] Embedded in this block was the text "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks", which is the date and headline of an issue of The Times newspaper.[7] Nine days later, Hal Finney received the first bitcoin transaction: ten bitcoins from Nakamoto.[18] Wei Dai and Nick Szabo were also early supporters.[17] In 2010, the first known commercial transaction using bitcoin occurred when programmer Laszlo Hanyecz bought two Papa John's pizzas for ₿10,000.[19]

2010–2012: Early growth

Blockchain analysts estimate that Nakamoto had mined about one million bitcoins[20] before disappearing in 2010 when he handed the network alert key and control of the code repository over to Gavin Andresen. Andresen later became lead developer at the Bitcoin Foundation,[21][22] an organization founded in September 2012 to promote bitcoin.[23]

After early "proof-of-concept" transactions, the first major users of bitcoin were black markets, such as the dark web Silk Road. During its 30 months of existence, beginning in February 2011, Silk Road exclusively accepted bitcoins as payment, transacting ₿9.9 million, worth about $214 million.[24]: 222

2013–2014: First regulatory actions

In March 2013, the US Financial Crimes Enforcement Network (FinCEN) established regulatory guidelines for "decentralized virtual currencies" such as bitcoin, classifying American bitcoin miners who sell their generated bitcoins as money services businesses, subject to registration and other legal obligations.[25] In May 2013, US authorities seized the unregistered exchange Mt. Gox.[26] In June 2013, the US Drug Enforcement Administration seized ₿11.02 from a man attempting to use them to buy illegal substances. This marked the first time a government agency had seized bitcoins.[27] The FBI seized about ₿30,000 in October 2013 from Silk Road, following the arrest of its founder Ross Ulbricht.[28]

In December 2013, the People's Bank of China prohibited Chinese financial institutions from using bitcoin.[29] After the announcement, the value of bitcoin dropped,[30] and Baidu no longer accepted bitcoins for certain services.[31] Buying real-world goods with any virtual currency had been illegal in China since at least 2009.[32]

2015–2019

Research produced by the University of Cambridge estimated that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.[33] In August 2017, the SegWit software upgrade was activated. Segwit was intended to support the Lightning Network as well as improve scalability.[34] SegWit opponents, who supported larger blocks as a scalability solution, forked to create Bitcoin Cash, one of many forks of bitcoin.[35]

In December 2017, the first futures on bitcoin was introduced by the CME.[36]

In February 2018, price crashed after China imposed a complete ban on Bitcoin trading.[37] The percentage of bitcoin trading in the Chinese renminbi fell from over 90% in September 2017 to less than 1% in June 2018.[38] During the same year, Bitcoin prices were negatively affected by several hacks or thefts from cryptocurrency exchanges.[39]

2020–present

Bitcoin price in US dollars

In 2020, some major companies and institutions started to acquire bitcoin: MicroStrategy invested $250 million in bitcoin as a treasury reserve asset,[40] Square, Inc., $50 million,[41] and MassMutual, $100 million.[42] In November 2020, PayPal added support for bitcoin in the US.[43]

In February 2021, Bitcoin's market capitalization reached $1 trillion for the first time.[44] In November 2021, the Taproot soft-fork upgrade was activated, adding support for Schnorr signatures, improved functionality of smart contracts and Lightning Network.[45] Before, Bitcoin only used a custom elliptic curve with the ECDSA algorithm to produce signatures.[46]: 101 In September 2021, Bitcoin became legal tender in El Salvador, alongside the US dollar.[4] In October 2021, the first bitcoin futures ETF, called BITO, from ProShares was approved by the SEC and listed on the Chicago Mercantile Exchange.[47]

In May and June 2022, the bitcoin price fell following the collapses of TerraUSD, a stablecoin,[48] and the Celsius Network, a cryptocurrency loan company.[49][50]

In 2023, ordinals, non-fungible tokens (NFTs) on Bitcoin, went live.[51] In January 2024, the first 11 US spot bitcoin exchange-traded funds (ETFs) began trading, offering direct exposure to bitcoin for the first time on American stock exchanges.[52][53]

Design

Main article: Bitcoin protocol

Units and divisibility

The unit of account of the bitcoin system is the bitcoin. It is most commonly represented with the currency code BTC[a] as well as the symbol ₿.[1] XBT, a code that conforms to ISO 4217 though not officially part of it, is used by Bloomberg L.P.[54]

No uniform capitalization convention exists; some sources use Bitcoin, capitalized, to refer to the technology and network, and bitcoin, lowercase, for the unit of account.[55] The Oxford English Dictionary advocates the use of lowercase bitcoin in all cases.[56]

One bitcoin is divisible to eight decimal places.[8]: ch. 5 Units for smaller amounts of bitcoin are the millibitcoin (mBTC), equal to 1⁄1000 bitcoin, and the satoshi[b] (sat), representing 1⁄100000000 (one hundred millionth) bitcoin, the smallest amount possible.[2] 100,000 satoshis are one mBTC.[57]

Blockchain

Further information: Blockchain § Structure and design

As a decentralized system, bitcoin operates without a central authority or single administrator,[58] so that anyone can create a new bitcoin address and transact without needing any approval.[8]: ch. 1 This is accomplished through a specialized distributed ledger called a blockchain that records bitcoin transactions.[59]

The blockchain is implemented as an ordered list of blocks. Each block contains a SHA-256 hash of the previous block,[59] "chaining" them in chronological order.[8]: ch. 7 [59] The blockchain is maintained by a peer-to-peer network.[24]: 215–219 Individual blocks, public addresses, and transactions within blocks are public information, and can be examined using a blockchain explorer.[60]

Nodes validate and broadcast transactions, each maintaining a copy of the blockchain for ownership verification.[61] A new block is created every 10 minutes on average, updating the blockchain across all nodes without central oversight. This process tracks bitcoin spending, ensuring each bitcoin is spent only once. Unlike a traditional ledger that tracks physical currency, bitcoins exist digitally as unspent outputs of transactions.[8]: ch. 5

Addresses and transactions

Simplified chain of ownership. In practice, a transaction can have more than one input and more than one output.[62]

In the blockchain, bitcoins are linked to specific addresses that are hashes of a public key. Creating an address involves generating a random private key and then computing the corresponding address. This process is almost instant, but the reverse (finding the private key for a given address) is nearly impossible.[8]: ch. 4 Publishing a bitcoin address does not risk its private key, and it is extremely unlikely to accidentally generate a used key with funds. To use bitcoins, owners need their private key to digitally sign transactions, which are verified by the network using the public key, keeping the private key secret.[8]: ch. 5

Bitcoin transactions use a Forth-like scripting language,[8]: ch. 5 involving one or more inputs and outputs. When sending bitcoins, a user specifies the recipients' addresses and the amount for each output. This allows sending bitcoins to several recipients in a single transaction. To prevent double-spending, each input must refer to a previous unspent output in the blockchain.[62] Using multiple inputs is similar to using multiple coins in a cash transaction. As in a cash transaction, the sum of inputs can exceed the intended sum of payments. In such a case, an additional output can return the change back to the payer.[62] Unallocated input satoshis in the transaction become the transaction fee.[62]

Losing a private key means losing access to the bitcoins, with no other proof of ownership accepted by the protocol.[24] For instance, in 2013, a user lost ₿7,500, valued at US$7.5 million, by accidentally discarding a hard drive with the private key.[63] It is estimated that around 20% of all bitcoins are lost.[64] The private key must also be kept secret as its exposure, such as through a data breach, can lead to theft of the associated bitcoins.[8]: ch. 10 [65] As of December 2017[update], approximately ₿980,000 had been stolen from cryptocurrency exchanges.[66]

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