A clear explanation for people who want to understand it, not just trade it.

Key Takeaways:

• Bitcoin is a digital currency that allows people to send money directly to each other over the internet without needing a bank or any other intermediary.
• There will only ever be 21 million Bitcoin. This fixed supply cannot be changed by any government, company, or individual, which is why many investors view it as a hedge against the loss of purchasing power that comes from governments printing money.
• Bitcoin runs on a decentralized network of computers spread around the world. No single entity controls it. Transactions are recorded on a public ledger called a blockchain that anyone can verify.
• Bitcoin is volatile in the short term. Its price has dropped 50% or more multiple times in its history. But over every four-year period since its creation, it has appreciated significantly. Understanding both the risk and the track record is essential before investing.
• How you hold Bitcoin matters as much as whether you hold it. The custody model you choose determines who controls your Bitcoin and what happens to it if something goes wrong.

The Simple Explanation