Is Bitcoin a cryptocurrency? What it is and who created it
Yes, Bitcoin is the first cryptocurrency and runs on its own chain with no central issuer. US agencies treat it as a commodity and tax it as property.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
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Bitcoin (BTC) has live market data and a short profile on its own page. A confirmed on-chain transfer is written to the Bitcoin blockchain, where anyone can read it. Sending coins means signing a transfer with a private key kept in a wallet.
What makes Bitcoin a cryptocurrency?
Bitcoin is the first cryptocurrency, and it runs on its own blockchain rather than on servers a company owns. Cryptography secures each transfer, and the network agrees on the order in which transfers happen. That agreement replaces a bank, and no central issuer approves the coins.
Who created Bitcoin and how is it issued?
Satoshi Nakamoto is a pseudonym. A white paper posted to a cryptography mailing list on 31 October 2008 set out the design, and the network began on 3 January 2009 with its first block. New coins come from mining rather than a company, and mining confirms pending transfers by writing them into the chain.
What is Bitcoin used for?
Bitcoin moves value between two people without a bank in the middle, and some people hold it as savings. On 22 May 2010, Laszlo Hanyecz made the first known commercial purchase with bitcoin, paying for two pizzas.
- Send value to someone without a bank.
- Hold coins as savings.
- Speculate on price moves.
- Pay a seller who accepts bitcoin.
How does Bitcoin differ from altcoins?
Bitcoin is the base asset that other coins are compared with, while altcoin is a loose word for every other cryptocurrency. Those projects differ in who runs them and how new units appear. In August 2017, opponents of a Bitcoin upgrade split off to create Bitcoin Cash.
How do US rules treat Bitcoin?
US agencies treat Bitcoin as a commodity rather than a security. The IRS taxes it as property, much like stocks or gold. In March 2013, the Financial Crimes Enforcement Network set guidelines for decentralized virtual currencies such as bitcoin.
Bitcoin price todayLive price, charts and market data live in our Coins section.Frequently asked questions
No. Bitcoin is a coin, and blockchain is the record-keeping technology behind it. Other projects use the same technology separately.
Some sellers accept it, and a transfer normally confirms in about 10 to 60 minutes. A business may refuse it, since no US law makes Bitcoin legal tender nationwide.
Not fully. An address carries no name, but confirmed transfers stay on a public ledger, and analysis can often link an address to a person.
