Skip to main content

What Is Bitcoin? The First and Only Digital Money

· 3 min read

Bitcoin is not just a cryptocurrency.
Bitcoin is a financial revolution that changed the world forever.

Its emergence gave people the opportunity to use digital money independent of the state.
It is a fully autonomous, decentralized, and transparent monetary system, where the rules are set from the beginning and remain unchanged.

Why Bitcoin Matters​

To truly understand and appreciate the innovation of Bitcoin, you need to understand how the traditional financial system works — a system that has been failing for quite some time.

For this, it’s enough to read one book: The Bitcoin Standard.
It provides a clear understanding of why Bitcoin is so important today and why it is Bitcoin — and not any other cryptocurrency — that matters.

📖 You can find this book in our e-book library on the platform.

Bitcoin as Digital Money​

As of now, Bitcoin is the only reliable, simple, fast, and cheap way to transfer value from point A to point B.
No other cryptocurrency can do it faster, safer, or more securely.

The Bitcoin blockchain is distributed across the world among all network participants.
Any transaction added to the blockchain is instantly recorded on every node.

➡️ Anyone can become a Bitcoin node:
Just install the software on your computer, and you store a complete copy of the Bitcoin blockchain — starting from its launch in 2009.

The more nodes in the network, the greater its decentralization and security.

What Makes Bitcoin Different?​

Unlike other cryptocurrencies, Bitcoin has unique qualities:

  1. No central point of control — its creator, Satoshi Nakamoto, disappeared and no longer has any control.
  2. Full autonomy of the protocol — Bitcoin has no company or organization controlling it.
  3. Direct connection to the real world — secured by energy-intensive mining.

By contrast:

  • Ethereum is developed by the Ethereum Foundation, which can implement changes and upgrades.
  • Solana, Avalanche, and others can be altered or even shut down by their developers.

The Role of Mining​

Bitcoin mining requires a massive amount of energy — and contrary to myths, this is an advantage, not a drawback.

  • Energy is what ties Bitcoin to the real world.
  • Mining consumes real resources (electricity), just like extracting and refining gold.
  • Most other cryptocurrencies use staking, where coins are created out of thin air, without resource costs — making them isolated from the real world.

Inside the Bitcoin Module​

This lesson is only an introduction.
The Bitcoin module covers in detail:

  • How Bitcoin works
  • How transactions are structured
  • What Bitcoin wallets are
  • How to use Bitcoin properly while maintaining anonymity and privacy

Bitcoin vs Other Cryptocurrencies​

Bitcoin is the only true digital form of money.
Everything else is not money.

  • Ethereum is not a competitor to Bitcoin — its role is to serve as a platform for decentralized applications.
    • Decentralization is less critical for Ethereum than for Bitcoin.
  • Solana, Avalanche, and many others belong to an entirely different category.

⚡ What Ethereum is, why it exists, and how it works — I’ll explain in the next lesson.

Disclaimer: These materials are created for educational purposes only and do not constitute financial advice.