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'''Bitcoin'''
{{Special characters}}


'''Bitcoin''' (BTC; symbol: ₿) is a decentralized digital currency that operates without a central authority, bank, or administrator. It enables peer-to-peer digital payments using cryptographic verification instead of trust. Bitcoin was introduced in 2008 by the pseudonymous creator '''Satoshi Nakamoto''' through the whitepaper ''Bitcoin: A Peer-to-Peer Electronic Cash System''. The network launched in January 2009 with the mining of the Genesis Block.
{{Infobox cryptocurrency
| name = Bitcoin
| image = Bitcoin.png
| image_size = 150px
| caption = Commonly used logo of bitcoin
| symbol = ₿
| ticker = BTC
| precision = 10⁻8
| plural = Bitcoins
| subunits =
* Millibitcoin (mBTC) – 1/1000
* Bit (μBTC) – 1/100000
* Satoshi (sat) – 1/10000000
* Millisatoshi (msat) – 1/100000000000
| latest_release_version = 30.0.0
| latest_release_date = 11 October 2025
| code_repository = https://github.com/bitcoin/bitcoin
| programming_language = C++
| white_paper = ''Bitcoin: A Peer-to-Peer Electronic Cash System''
| author = [[Satoshi Nakamoto]]
| license = MIT License
| ledger_start = 3 January 2009
| hash_function = SHA-256 (two rounds)
| timestamping = Proof of work (partial hash inversion)
| block_reward = ₿3.125
| block_time = 10 minutes
| supply_limit = ₿21,000,000
| circulating_supply = ₿19,934,271 (as of 14 October 2025)
| website = {{URL|https://bitcoin.org}}
}}


Bitcoin uses blockchain technology, a distributed public ledger secured by proof-of-work (PoW), which ensures transparency, immutability, and resistance to censorship.
'''Bitcoin''' (abbreviated '''BTC'''; symbol: '''₿''') is a decentralized digital asset and the first widely adopted [[cryptocurrency]]. 
It was introduced in 2008 when an individual or group working under the pseudonym ''Satoshi Nakamoto'' published a white paper outlining a peer-to-peer system for electronic transactions without the need for a central authority.<ref name="whoissn">{{Cite news |last=S. |first=L. |date=2 November 2015 |title=Who is Satoshi Nakamoto? |newspaper=The Economist |url=https://www.economist.com/the-economist-explains/2015/11/02/who-is-satoshi-nakamoto |access-date=21 November 2023 |archive-url=https://web.archive.org/web/20201122172929/https://www.economist.com/the-economist-explains/2015/11/02/who-is-satoshi-nakamoto |archive-date=22 November 2020 |url-status=live}}</ref>


== History ==
Bitcoin’s software implementation was released as open-source in early 2009,<ref name="NY2011">{{Cite magazine |last=Davis |first=Joshua |date=10 October 2011 |title=The Crypto-Currency: Bitcoin and its mysterious inventor |url=https://www.newyorker.com/magazine/2011/10/10/the-crypto-currency |access-date=31 October 2014 |magazine=The New Yorker |archive-url=https://web.archive.org/web/20141101014157/http://www.newyorker.com/magazine/2011/10/10/the-crypto-currency |archive-date=1 November 2014 |url-status=live}}</ref> enabling the first transactions on its distributed ledger, known as the [[blockchain]]. The protocol uses [[public-key cryptography]] to verify ownership and a proof-of-work mechanism—commonly associated with mining—to secure the network and achieve consensus between participating computers.<ref name="Antonopoulos2014">{{Cite book |last=Antonopoulos |first=Andreas M. |title=Mastering Bitcoin: Unlocking Digital Crypto-Currencies |year=2014 |publisher=O'Reilly Media |isbn=978-1-4493-7404-4}}</ref>{{rp|ch. 1}}
=== Early Digital Currency Concepts (1980s–2000s) ===


Bitcoin’s design is rooted in prior cryptographic technologies and digital-money experiments:
Bitcoin gained international recognition during the 2010s and early 2020s, eventually becoming legal tender in El Salvador between 2021 and 2025—the first instance of nationwide adoption of a cryptocurrency as official currency.<ref name="FTlegal">{{cite news |title=El Salvador's dangerous gamble on bitcoin |url=https://www.ft.com/content/c257a925-c864-4495-9149-d8956d786310 |date=7 September 2021 |access-date=7 September 2021 |work=Financial Times |archive-url=https://web.archive.org/web/20210907081627/https://www.ft.com/content/c257a925-c864-4495-9149-d8956d786310 |archive-date=7 September 2021 |url-status=live}}</ref>


DigiCash (David Chaum, 1989) – anonymous electronic cash, centralized.
Although Bitcoin allows users to transact pseudonymously, its association with criminal activity and market volatility has contributed to restrictions and prohibitions in several countries.<ref name="SunYin2019">{{Cite journal |last1=Sun Yin |first1=Hao Hua |last2=Langenheldt |first2=Klaus |last3=Harlev |first3=Mikkel |last4=Mukkamala |first4=Raghava Rao |last5=Vatrapu |first5=Ravi |date=2 January 2019 |title=Regulating Cryptocurrencies: A Supervised Machine Learning Approach to De-Anonymizing the Bitcoin Blockchain |journal=Journal of Management Information Systems |volume=36 |issue=1 |pages=65–92 |doi=10.1080/07421222.2018.1550550 |access-date=29 November 2023 |archive-url=https://web.archive.org/web/20240421113631/https://www.researchgate.net/publication/332118587_Regulating_Cryptocurrencies_A_Supervised_Machine_Learning_Approach_to_De-Anonymizing_the_Bitcoin_Blockchain |archive-date=21 April 2024 |url-status=live}}</ref>


Hashcash (Adam Back, 1997) – proof-of-work system later powering Bitcoin mining.
Despite regulatory uncertainty, Bitcoin remains the most widely recognized and valuable digital currency, supported by a global network of nodes, exchanges, wallet providers, and payment services.
 
b-money (Wei Dai, 1998) – a proposal for decentralized electronic cash.
 
Bit Gold (Nick Szabo, late 1990s) – PoW-based decentralized money concept.
 
RPOW (Hal Finney, 2004) – reusable proof-of-work tokens.
 
These systems inspired Bitcoin’s cryptography, decentralization, and consensus mechanisms.
 
=== Creation and Launch (2008–2009) ===
 
Key events:
 
31 October 2008 – Bitcoin whitepaper published.
 
3 January 2009 – Genesis Block mined by Satoshi Nakamoto.
 
9 January 2009 – Bitcoin v0.1 software released.
 
12 January 2009 – First Bitcoin transaction: Satoshi → Hal Finney (10 BTC).
 
Early users mined Bitcoin on personal computers with no monetary value attached.
 
=== First Real Transactions (2010–2012) ===
 
22 May 2010: Laszlo Hanyecz buys 2 pizzas for 10,000 BTC (first commercial use).
 
Bitcoin grows from $0.10 to $1 in 2011.
 
Developer community expands rapidly.
 
=== Growth and Challenges (2013–2014) ===
 
Bitcoin surpasses $1,000 for the first time (2013).
 
First Bitcoin ATM launches in Canada.
 
Mt. Gox collapse (2014) causes major exchange crisis.
 
=== Maturation and Scaling (2015–2020) ===
 
Global exchanges mature.
 
Japan recognizes Bitcoin for payments (2016).
 
SegWit and Lightning Network deployed.
 
Bitcoin reaches $19,666 in 2017.
 
CME launches Bitcoin futures.
 
COVID-19 accelerates crypto adoption (2020).
 
=== Institutional Adoption (2021–2023) ===
 
Bitcoin surpasses $60,000+ in 2021.
 
Tesla, MicroStrategy, BlackRock adopt Bitcoin strategies.
 
First U.S. Bitcoin futures ETF launches.
 
Market volatility increases during 2022–2023 events.
 
=== 2024 Landmark: Spot Bitcoin ETFs ===
 
The U.S. SEC approves multiple spot Bitcoin ETFs, driving global legitimacy and institutional participation.
 
=== 2025 Developments ===
 
PDF-based highlights:
 
Government-level Bitcoin frameworks evolve.
 
Strategic Bitcoin reserves appear.
 
Market crosses $110,000 in early 2025.
 
== Bitcoin Design ==
 
Bitcoin is designed for:
 
decentralization
 
censorship resistance
 
cryptographic security
 
peer-to-peer digital payments
 
predictable monetary supply
 
It uses a network of nodes enforcing consensus rules without central control.
 
== Units and Divisibility ==
 
Bitcoin uses several units:
 
1 BTC = 1 bitcoin
 
1 mBTC = 0.001 BTC
 
1 μBTC (bit) = 0.000001 BTC
 
1 satoshi = 0.00000001 BTC
 
1 millisatoshi (msat) = used in Lightning Network
 
Unicode standardized the symbol ₿ in 2017.
 
== Blockchain Architecture ==
 
Bitcoin’s blockchain is a decentralized ledger of blocks linked cryptographically.
 
=== Keys and Addresses ===
 
Bitcoin addresses are derived from:
 
private key → public key → hashed address
 
Types of addresses:
 
Legacy (1…)
 
P2SH (3…)
 
SegWit (bc1…)
 
Taproot (bc1p…)
 
Mnemonic seed phrases allow wallet backups.
 
=== Transactions ===
 
A transaction contains:
 
inputs (previous outputs)
 
outputs
 
digital signatures
 
locking/unlocking scripts
 
Nodes validate every transaction before adding it to the blockchain.
 
=== Timestamp Server ===
 
Bitcoin timestamps data by hashing blocks into an immutable chain, preventing double spending.
 
=== Proof of Work (PoW) ===
 
Bitcoin mining uses SHA-256 hashing, requiring miners to find a valid hash below a target value.
 
Benefits:
 
decentralized security
 
attack resistance
 
permissionless participation
 
=== Network Operation ===
 
Nodes:
 
validate transactions
 
enforce consensus rules
 
relay messages
 
store the blockchain
 
SPV wallets verify payments using block headers only.
 
== Privacy ==
 
Bitcoin is pseudonymous, not anonymous.
All transactions are public, but identities are not tied to addresses.
 
Privacy-enhancing methods:
 
CoinJoin
 
Tor / VPN
 
Taproot script-path hiding
 
Avoiding address reuse
 
Lightning Network usage
 
== Wallets ==
 
Wallet types include:
 
hot wallets (online)
 
cold wallets (hardware, paper)
 
desktop/mobile software wallets
 
multisignature wallets
 
Lightning-enabled wallets
 
Backups and seed phrase security are crucial for users.
 
== Scalability ==
 
Bitcoin processes ~3–7 TPS.
 
Scalability improvements:
 
SegWit
 
Lightning Network
 
Batch transactions
 
Schnorr signatures
 
Taproot enhancements
 
Sidechains (Liquid, RSK)
 
== Economics ==
 
Bitcoin’s economics include:
 
fixed supply: 21 million BTC
 
block reward halving every 210,000 blocks
 
decentralized monetary issuance
 
open global market pricing
 
Bitcoin is often considered “digital gold.”
 
== Legal Status ==
 
Regulatory stance varies globally:
 
Legal tender: El Salvador
 
Regulated as property: United States
 
Permitted for payments: Japan
 
Restricted/Banned: China, Algeria, Nepal, Bolivia
 
== Payments and Use Cases ==
 
Bitcoin is used for:
 
cross-border payments
 
remittances
 
e-commerce
 
store-of-value
 
Lightning micropayments
 
merchant transactions
 
== Investment ==
 
Bitcoin is treated as:
 
a long-term investment
 
an inflation hedge
 
digital gold
 
a speculative asset
 
Institutional adoption has grown significantly since 2020.
 
== Criticism ==
 
Criticisms include:
 
high volatility
 
price speculation
 
energy consumption
 
illegal-use concerns
 
scalability limitations
 
risk of market manipulation
 
Prominent economists like Joseph Stiglitz, Kenneth Rogoff, and Nouriel Roubini have raised objections.
 
== Market Characteristics ==
 
Bitcoin markets operate 24/7 globally and include:
 
spot markets
 
futures and options
 
ETFs
 
OTC trades
 
decentralized exchanges
 
Bitcoin influences the wider crypto ecosystem of tokens, NFTs, and DeFi.

Revision as of 09:51, 18 November 2025

Bitcoin
Commonly used logo of bitcoin
Denominations
Plural Bitcoins
Symbol ₿ (Unicode: U+20BF ₿ BITCOIN SIGN)
Code BTC
Precision 10⁻⁸
Subunits
Millibitcoin (mBTC)
1/1000
Bit (μBTC)
1/100000
Satoshi (sat)
1/10000000
Millisatoshi (msat)
1/100000000000

59 Markets.com, “Crypto market analysis: What are the features of cryptocurrency?” Archived. Retrieved October 2025

Development
Original author Satoshi Nakamoto
White paper Bitcoin: A Peer-to-Peer Electronic Cash System
Implementation Bitcoin Core
Initial release 0.1.0 / 9 January 2009 (16 years ago)
Latest release 30.0.0 / 11 October 2025 (34 days ago)
Code repository GitHub
Development status Active
Written in C++
Source model Free and Open Source Software
License MIT Licence
Ledger
Ledger start 3 January 2009 (16 years ago)
Timestamping scheme Proof of work (partial hash inversion)
Hash function SHA-256 (two rounds)
Issuance Decentralized (block reward), Initially ₿50 per block, halved every 210,000 blocks
Block reward ₿3.125 (as of 2025)
Block time 10 minutes
Circulating supply ₿19,934,271 (as of 14 October 2025)
Supply limit ₿21,000,000
Valuation
Exchange rate Floating
Website bitcoin.org


Template:Special characters

Template:Infobox cryptocurrency

Bitcoin (abbreviated BTC; symbol: ₿) is a decentralized digital asset and the first widely adopted cryptocurrency. It was introduced in 2008 when an individual or group working under the pseudonym Satoshi Nakamoto published a white paper outlining a peer-to-peer system for electronic transactions without the need for a central authority.<ref name="whoissn">Template:Cite news</ref>

Bitcoin’s software implementation was released as open-source in early 2009,<ref name="NY2011">Template:Cite magazine</ref> enabling the first transactions on its distributed ledger, known as the blockchain. The protocol uses public-key cryptography to verify ownership and a proof-of-work mechanism—commonly associated with mining—to secure the network and achieve consensus between participating computers.<ref name="Antonopoulos2014">Template:Cite book</ref>Template:Rp

Bitcoin gained international recognition during the 2010s and early 2020s, eventually becoming legal tender in El Salvador between 2021 and 2025—the first instance of nationwide adoption of a cryptocurrency as official currency.<ref name="FTlegal">Template:Cite news</ref>

Although Bitcoin allows users to transact pseudonymously, its association with criminal activity and market volatility has contributed to restrictions and prohibitions in several countries.<ref name="SunYin2019">Template:Cite journal</ref>

Despite regulatory uncertainty, Bitcoin remains the most widely recognized and valuable digital currency, supported by a global network of nodes, exchanges, wallet providers, and payment services.

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