Bitcoin 101: The OG Crypto That Started It All

A closer look at the most popular crypto

Bitcoin is where it all began. It was the first cryptocurrency to introduce the world to the concept of a decentralized, peer-to-peer digital currency, proving that money could exist and operate outside traditional financial systems.

As you might already know, Bitcoin was created by the elusive Satoshi Nakamoto (whether that’s an individual or a group remains a mystery). The Bitcoin whitepaper was published in 2008, and by 2009, the network was up and running.

Unlike traditional currencies, Bitcoin isn’t controlled by a central bank or a single authority. Instead, it relies on a global network of computers, known as nodes, that work together to maintain the system. This decentralized structure is what makes Bitcoin so resilient—no single entity can manipulate it.

One of Bitcoin’s most revolutionary aspects is its blockchain technology. This is essentially a public ledger that records every Bitcoin transaction ever made. Transactions are grouped into blocks, added to the blockchain in chronological order, and stored across thousands of nodes. Once a transaction is recorded, it’s nearly impossible to alter, ensuring security and transparency.

Another key feature of Bitcoin is its fixed supply—there will only ever be 21 million bitcoins in existence. This built-in scarcity is designed to mimic precious metals like gold. To make supply even more controlled, every four years, Bitcoin undergoes a process called halving, which reduces the reward for mining new bitcoins. Over time, this slows the release of new bitcoins into circulation.

So, how does Bitcoin mining work? In simple terms, it’s the process that keeps the network secure and verifies transactions. Miners use powerful computers to solve complex mathematical problems, and in return, they’re rewarded with new bitcoins. While energy-intensive, this process is essential for Bitcoin’s integrity.

Bitcoin also enables direct, peer-to-peer transactions, meaning users can send and receive funds without intermediaries. These transactions are pseudonymous—not directly linked to personal identities but still traceable through public Bitcoin addresses. Thanks to cryptographic security, each transaction is protected by digital signatures, ensuring its authenticity.

Now, let’s talk numbers. Bitcoin’s market capitalization surpassed $1 trillion in 2021, and in January 2025, it reached an all-time high of $109,114.88 per Bitcoin. A far cry from its early days, when it was worth just a few cents.

Which brings us to Bitcoin Pizza Day—May 22nd. In 2010, a programmer named Laszlo Hanyecz made history by using Bitcoin to purchase real-world goods for the first time. His order? Two pizzas. The price? 10,000 bitcoins. At the time, it seemed like a fair trade, but at today’s Bitcoin value, that’s well over $500 million.

A reminder that sometimes, it pays to HODL.