What is it?

Bitcoin is the world’s first cryptocurrency and the largest by market capitalization. It emerged as an alternative to the traditional financial system in response to the 2008 global crisis. The software code and concept were proposed by an individual or group under the pseudonym Satoshi Nakamoto.

The original document — the Bitcoin Whitepaper — was published on October 31, 2008, and the first transaction on the network took place on January 3, 2009 ([original Whitepaper]).

The core principle of Bitcoin is decentralization. It has no central authority and no way to "print more" coins. The maximum number of bitcoins that can ever exist is 21 million. This fixed supply makes BTC a unique store of value.

According to Blockchain.com, over 19.7 million BTC have been mined as of 2025 — more than 93% of the total supply.

Who uses Bitcoin?

Governments

Since September 7, 2021, Bitcoin has been officially recognized as legal tender in El Salvador. It is accepted by government institutions, retail chains, and citizens through the Chivo Wallet app.

Between 2022 and 2024, countries with unstable currencies — including the Central African Republic, Tanzania, and others — showed interest in legalizing BTC.

Companies and funds

• MicroStrategy is one of the largest publicly traded companies investing in BTC. As of 2025, according to their reports, the company holds over 214,000 BTC.
• Tesla — Elon Musk announced a $1.5 billion BTC purchase in 2021 and continues to hold part of the assets in crypto.
• Major investment firms like Grayscale manage cryptocurrency trusts.

Investors and individuals

According to Glassnode, more than 65% of all bitcoins have remained unmoved for over a year, indicating that most holders view BTC as a long-term investment rather than a tool for short-term speculation.

Lightning Network users

For micropayments, the Lightning Network — a second-layer protocol — is increasingly used to enable instant, near-zero-fee transactions.

According to 1ML.com, the network’s total liquidity exceeds 5,000 BTC in 2025.

Why is Bitcoin needed?

Hedge against inflation

Bitcoin is often called “digital gold.” Thanks to its limited supply and decentralized nature, it’s immune to government monetary policy and cannot be inflated by money printing.

Cross-border transfers

BTC can be sent from anywhere in the world to any other location without the need for banks, SWIFT, or currency controls. The average transaction fee usually ranges from $1 to $5 — but with the Lightning Network, transfers can cost just a few cents or even less.

Long-term store of value

For many investors, Bitcoin is part of a capital preservation and portfolio diversification strategy. While highly volatile, BTC is often seen as a high-risk but high-potential asset.

Financial independence and freedom of payments

Bitcoin cannot be frozen, confiscated, or censored. Only the holder of the private key has access to the wallet, which makes BTC a powerful tool for financial sovereignty.

Why is this important?

Limited supply

There will only ever be 21 million BTC. Every four years, a “halving” reduces the block reward by 50%. The next halving is expected in 2028. Source: bitcoinblockhalf.com

Network security

Bitcoin is the most secure blockchain network in existence. Its security is backed by a massive hash rate — consistently over 500 EH/s as of 2025 (Blockchain.com). This makes a 51% attack virtually impossible.

Technological development

• In 2021, the Taproot upgrade was implemented, improving privacy and expanding script functionality.
• Advancements in Lightning Network and sidechains (like Liquid Network) enable fast and low-cost transactions.

Examples of BTC use cases

• Long-term saving and capital transfer (HODLing)
• Cross-border remittances without intermediaries or regulators
• Donations and tips for bloggers and media (e.g., via BTCPay Server)
• E-commerce payments (some companies like Microsoft and Overstock have tested BTC payments)
• In-game transactions and services that integrate Lightning Network