Bitcoin basics
The first cryptocurrency in five short points: blocks, miners, the supply cap and fees.
In short
Explainer, 8 min read (sample)
Bitcoin is a shared record of who holds which coins, kept by thousands of computers that check each other’s work. No bank or company runs it.
New entries are grouped into blocks about every ten minutes. Miners compete to add the next block, and the software rewards the winner with new coins.
That reward halves every four years or so, which is why the total supply can never pass 21 million. The cap is a rule in the software; it says nothing about what a coin is worth.
Not financial advice. This explainer describes how something works. It does not say whether to buy, sell or hold anything.
Key points
- A block is added about every ten minutes
- The total supply is capped at 21 million
- Fees pay for a place in the next block
- Nobody can reverse a confirmed transfer
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