Buy Bitcoin (BTC)

What is Bitcoin (BTC)?

For many traders and investors, Bitcoin is often the gateway into the world of cryptocurrency. As the world’s first and most recognised cryptocurrency, it holds a unique and influential position in the crypto space. With its intriguing origin story, innovative digital properties, decentralised design, and fixed supply of 21 million coins, Bitcoin is valued for its utility, security, and scarcity—qualities that have earned it the title “Digital Gold.”

Launched in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin started the blockchain and crypto revolution.

Bitcoin is an internet-native digital currency that allows secure, peer-to-peer transactions. Unlike traditional currencies like the Dollar or Euro, it’s decentralised, meaning people can send Bitcoin directly to each other without a bank or intermediary.

Every Bitcoin transaction is recorded on a public ledger called the blockchain and verified by a global network of participants.

How does Bitcoin work?

• Blockchain Technology: Bitcoin transactions are recorded on a public ledger called the blockchain. When you send Bitcoin, miners verify the transaction by solving cryptographic puzzles and adding it to the blockchain.
• Mining: Mining is the process of creating new Bitcoin and verifying transactions. Every 10 minutes, miners compete to solve complex computational puzzles. The winner adds a new block to the blockchain and earns Bitcoin and transaction fees.
• Consensus Mechanism: Bitcoin uses a Proof of Work (PoW) consensus mechanism, where miners solve mathematical puzzles to validate transactions and add new blocks to the blockchain.
• Security: Bitcoin uses cryptography to secure transactions. Each wallet has a public key (like an account number) to receive funds and a private key (like a PIN) to sign transactions and access your Bitcoin. Bitcoin also uses the SHA-256 hashing algorithm to ensure transaction security and maintain the integrity of the network.

What are the potential use cases for Bitcoin?

As a borderless, secure digital currency, Bitcoin can fill many roles in today’s economy:

• Online Payments: Bitcoin is a popular alternative payment method, accepted by many businesses online and in-store. You can use it to buy goods and services at merchants that accept cryptocurrency.
• Cross-Border Remittances: Bitcoin offers a fast, low-cost alternative for sending money abroad, reducing both transfer times and fees compared to traditional methods like SWIFT.
• Store of Value: Many traders and investors see Bitcoin as a store of value, often referring to it as “digital gold.” With its fixed supply of 21 million and deflationary issuance schedule, Bitcoin is considered a superior alternative to gold and a hedge against global monetary debasement.

Pro Tip: When you buy Bitcoin (BTC), you don’t need to own a full Bitcoin. It’s highly divisible and can be split into up to eight decimal places. The smallest unit is called a Satoshi, named after Bitcoin’s creator. 1 BTC equals 100,000,000 Satoshis (or “Sats” for short).

What is the history of Bitcoin?

• 2008: Satoshi Nakamoto published the Bitcoin whitepaper, introducing the concept of a peer-to-peer electronic cash system.
• 2009: The Bitcoin network went live on January 3rd, with the mining of the first “genesis block,” marking the official start of Bitcoin’s journey.
• 2010: Bitcoin’s first real-world transaction occurred when 10,000 BTC was exchanged for two pizzas, showcasing its early use as a form of payment.
• 2012: On November 28, the Bitcoin network underwent its first programmed halving, reducing the rate at which new coins were created and boosting scarcity.
• 2017: A dispute over Bitcoin’s scalability led to the creation of Bitcoin Cash (BCH), a new cryptocurrency that forked from Bitcoin’s blockchain.
• 2020: Michael Saylor’s MicroStrategy became the first publicly listed company to add Bitcoin to its balance sheet.
• 2021: Bitcoin was recognized as legal tender in El Salvador, becoming the first country to officially adopt Bitcoin as a national currency.
• 2024: Bitcoin achieved a major milestone with the launch of its first Bitcoin ETF (Exchange-Traded Fund) in the United States, signaling growing institutional acceptance.
• 2024: Bitcoin’s price surged, surpassing the $150,000 AUD mark (around $100,000 USD), as it gained broader acceptance and mainstream attention.

Can I buy BTC on Coinstash?

Yes, you can easily buy BTC on Coinstash using our desktop or mobile app. Simply login or sign up, add funds to your account, and buy BTC in minutes.