What is Bitcoin and Why Everyone Should Learn About It?

Bitcoin has been making headlines for years, but for those just getting started, it can seem complex. At its core, Bitcoin is digital money that allows people to send and receive payments without a bank or middleman. Let’s break down what Bitcoin is, how it works, and why it’s worth knowing about.

What is Bitcoin?

Bitcoin is a decentralized digital currency created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Unlike traditional currencies like the dollar or euro, Bitcoin isn’t controlled by any government or central bank. Instead, it operates on a peer-to-peer network, meaning transactions happen directly between users.

Bitcoin, NOT cRyPt0

It’s easy for beginners to group Bitcoin with other digital assets or “cryptocurrencies,” but here’s the truth: Bitcoin stands apart. Bitcoin isn’t just another “crypto”—it’s the original and remains unique in both its purpose and structure. Unlike thousands of alternative coins (often called “altcoins”), Bitcoin was created with a clear mission: to be decentralized, sound money that can’t be controlled or inflated by any government or corporation.

What Sets Bitcoin Apart?

1. Decentralization: Bitcoin’s network is supported by a global community of nodes and miners, making it resistant to censorship, manipulation, and control by any single entity. Many other cryptocurrencies claim decentralization but often have central teams or foundations that can influence or change the protocol at will.

2. Scarcity: Bitcoin has a fixed supply of 21 million coins—no more, no less. This built-in scarcity means Bitcoin’s value isn’t eroded by inflation. Other cryptocurrencies, on the other hand, often don’t have such strict supply limits and can be inflated at will.

3. Security and Stability: Bitcoin has the most secure network, with the longest and most proven history. Launched in 2009, it has been battle-tested and has proven to be incredibly resilient. Other projects, while innovative, lack the same level of security, and many have come and gone.

4. Mission: Bitcoin’s goal is to serve as a global, decentralized currency and store of value—an alternative to traditional fiat currencies. Many other crypto projects focus on different, often speculative goals like building platforms for smart contracts, gaming, or decentralized finance (DeFi), which may be valuable but aren’t aimed at the same mission as Bitcoin.

Understanding that Bitcoin is different from “crypto” will help you focus on its primary goal: offering financial freedom and a hedge against inflation. Bitcoin is a movement, not a speculative token or trend. It’s sound money for anyone looking for long-term stability, and it’s here to stay.

How Does Bitcoin Work?

Bitcoin runs on a technology called blockchain, which is like a public ledger that records every transaction. Here’s how it works:

1. Blockchain: Think of it as a digital book that records every Bitcoin transaction. This ledger is secure and transparent, and anyone can view it.
2. Mining: New bitcoins are created through a process called mining, where powerful computers solve complex problems to add a new “block” of transactions to the blockchain. Miners are rewarded with Bitcoin, which helps keep the network secure.
3. Wallets: To use Bitcoin, you need a digital wallet. A wallet is like an online bank account where you store, send, and receive Bitcoin. Each wallet has a unique address, which is like an email address you can share to receive payments.

Why Should Everyone Learn About Bitcoin?

Bitcoin offers several advantages that make it valuable to understand, even if you’re not planning to buy or use it right away.

1. Financial Independence

Bitcoin lets you be your own bank. You can send and receive money without the need for a traditional bank or approval from a third party. This means you have complete control over your money, which can be empowering.

2. Limited Supply

Unlike traditional money, which governments can print in unlimited quantities, Bitcoin has a fixed supply of 21 million coins. This scarcity makes it more resistant to inflation, as the value of Bitcoin isn't easily diluted by "printing" more of it.

3. Global and Accessible

Bitcoin is global, meaning it can be used anywhere in the world. You don’t need a bank account to use Bitcoin—just an internet connection and a digital wallet. This can be especially useful for people in areas with limited access to banks or stable currencies.

4. Privacy and Security

Bitcoin transactions don’t require personal information, which can enhance privacy. Plus, the Bitcoin blockchain’s transparency and decentralized nature make Bitcoin transactions secure and resistant to fraud.

5. Investment Potential

Many people see Bitcoin as “digital gold” and invest in it as a way to protect their wealth over time. Because of its limited supply (there will only ever be 21 million bitcoins) and global demand, Bitcoin has the potential to increase in value over time.

How to Get Started Learning About Bitcoin

1. Read and Research: There are plenty of beginner-friendly resources online, including websites, videos, and books like The Bitcoin Standard by Saifedean Ammous. You can find also an overly simplified version of the book here: 
2. Join Communities: Online forums like Reddit, X (former Twitter), and Bitcoin meetups are filled with helpful information and supportive communities. You can also start by following me on X, LinkedIn, or Instagram.  
3. Try a Small Investment: You don’t need to buy a whole Bitcoin—just start with a small amount to understand how transactions work. Many apps make it easy to get started with a small amount.

For example, Relai app allows you to start with as little as 50 EUR/CHF!

There are also zero fees on your first 100 CHF/EUR purchase each month - up to 1,200 CHF/EUR a year!

By using my promo code SWISSHODLER, you will get also 10% discount on fees. 

No Fear!

Bitcoin might seem complex at first, but it’s simply digital money designed to be decentralized, secure, and accessible. As our world becomes more digital, Bitcoin offers a new way to think about money, independence, and financial freedom. Whether you’re curious or skeptical, learning about Bitcoin can help you better understand the future of finance.

p.s. You can also book a one-on-one Bitcoin Education session with me.