Beginner's Guide to Bitcoin

What is Bitcoin?

Bitcoin is a digital currency created in 2009 by an anonymous person or group named Satoshi Nakamoto. It operates on a decentralised network, allowing peer-to-peer transactions worldwide without intermediaries like banks or governments.

How does Bitcoin work?

Bitcoin uses blockchain technology—a public ledger maintained by miners who validate transactions by solving complex mathematical puzzles. This mining process secures the network and creates new bitcoins, which are limited to a total supply of 21 million, ensuring scarcity.

As of 2025, approximately 19.3 million bitcoins have already been mined, meaning about 92% of the total supply is in circulation. The remaining bitcoins will be gradually mined over the next century, with the final bitcoin expected to be mined around the year 2140 due to the halving events that reduce mining rewards approximately every four years. This slow release ensures a controlled and predictable supply.

Bitcoin performance figures

Bitcoin price started near zero in 2009, rising to about $1 in 2011, and crossing $1,000 by late 2013. It experienced major peaks and troughs, reaching around $20,000 in late 2017, followed by a bear market. Bitcoin surged again in 2020 and 2021, reaching all-time highs above $60,000 and even $69,000 in November 2021. Although it experienced volatility afterward, Bitcoin recovered to over $110,000 in 2025. Over the last decade, Bitcoin's price has increased by thousands of percent, outperforming many traditional assets. Bitcoin is the best performing asset over the last 15 years.

Why people buy Bitcoin

Investors consider Bitcoin a "digital gold" due to its scarcity and potential as a store of value against inflation. Others see it as a speculative investment, while many value its decentralisation and borderless transaction capability.

Major Bitcoin holders

A significant portion of Bitcoin is held by a small number of large holders, often called "whales." These include early adopters, large investors, institutional funds, and cryptocurrency exchanges. For example, entities like Grayscale Bitcoin Trust and major companies such as MicroStrategy hold substantial amounts of Bitcoin. Satoshi Nakamoto is estimated to hold around 1 million bitcoins, contributing to the large concentration of ownership. Understanding these big holders is important, as their actions can impact Bitcoin's market dynamics.

Future price forecasts

Analysts and experts predict a range of prices for Bitcoin's future:

• For 2025, estimates range from $70,000 to $250,000 depending on market conditions.
• By 2030, some forecasts expect Bitcoin to reach $250,000 to $700,000 under optimistic scenarios.
• Longer-term predictions suggest Bitcoin might climb over $1 million by the mid-2030s if adoption continues and it becomes a dominant store of value compared to gold.

Bitcoin remains volatile and predictions vary with factors such as regulation, adoption, and competition. Conservative scenarios also forecast more moderate growth or fluctuations around current prices.

How Bitcoin is used

Bitcoin can be used to make purchases, send money worldwide securely and quickly, or held as an investment for price appreciation.

Why consider buying Bitcoin

Bitcoin offers diversification benefits, protection against inflation, and represents a new financial technology poised for wider adoption. It's important to understand the risks and volatility while considering it as part of an investment portfolio. As with any crypto, never invest more than you can afford to lose and always do your own research.