What is Bitcoin? Important information to know before investing in BTC


Bitcoin, a prominent cryptocurrency, has garnered widespread attention in recent years and become a significant topic in financial discussions. However, not everyone fully understands the nature of this currency. To ensure comprehensive, in-depth, and accurate understanding of Bitcoin, join Tiệm Coin on a journey of comprehensive exploration of Bitcoin through the following article!

Basic Information about Bitcoin

What is Bitcoin (BTC)?

Bitcoin (BTC) is the first and largest cryptocurrency, created using blockchain technology. It is not only an online payment method but also an independent currency unit, not relying on any central financial institution or government. Bitcoin opens up the world of cryptocurrency and blockchain networks, marking a significant milestone in the history of global finance.


The peer-to-peer (P2P) network of Bitcoin allows for direct sending and receiving of payments without the need for intermediaries from traditional financial institutions. This not only helps reduce transaction costs but also makes each transaction more accessible and much cheaper compared to traditional international money transfer services.

With a total limited supply of 21 million BTC worldwide, Bitcoin is not only a digital currency but also a limited asset. As of January 2023, approximately 19.2 million BTC have been mined, leaving only about 1 million BTC left to be mined.

In addition to the largest unit, Bitcoin (BTC), Bitcoin also features smaller units known as Satoshi (or sts), named after the creator of Bitcoin, Satoshi Nakamoto. The relationship between these two units is 1 BTC = 100,000,000 Satoshis, symbolizing the divisibility and granularity of the cryptocurrency, with each Satoshi equivalent to 0.00000001 BTC.

When was Bitcoin created? Who created BTC?

Bitcoin was created in 2007, with Satoshi Nakamoto being the creator of BTC. In 2007, Satoshi Nakamoto believed in the possibility of building a transaction system in which members could participate without needing to trust each other. Registered on the domain Bitcoin.org in 2008, on August 31, 2008, Satoshi published information about Bitcoin in a white paper on peer-to-peer payment methods.

Satoshi Nakamoto

The Genesis Block, the first block of Bitcoin, was deployed on January 3, 2009. The first transaction in Bitcoin’s history occurred on January 12, 2009, between Satoshi and cryptographic pioneer Hal Finney, involving the transfer of 10 BTC.

This event not only marked the beginning of Bitcoin but also a significant turning point in financial history, as a cryptocurrency emerged independent of control from any government or central bank of any country.

When it comes to the creator of Bitcoin, the name Satoshi Nakamoto is often mentioned the most. However, as of the current time, there is no concrete evidence verifying whether Satoshi is an individual or an organization.

In 2010, Satoshi’s disappearance from the Bitcoin development community began when he transferred alert keys to Gavin Andresen amid a Bitcoin network facing an attack. Despite various related details, the creator of Bitcoin still remains mysterious to this day.

Among the list of individuals who could be Satoshi, there are names like Nick Szabo, who is passionate about decentralized currency and published the Bitgold article, considered a precursor to Bitcoin. Another name is Hal Finney, a cryptography pioneer and the first person to use Bitcoin software. However, the issue of the creator’s identity remains a major mystery and continues to pique the curiosity of the community.

Bitcoin Price Over the Years

The price of Bitcoin has constantly fluctuated over the years, as follows:

Between 2013 and 2017, the price of Bitcoin fluctuated between $100 and under $1,000 per BTC.

By the end of 2017, the price of Bitcoin nearly reached its peak at around $20,000 per BTC, but then dropped to between $3,000 and $10,000 per BTC.
At the beginning of 2021, the price of Bitcoin suddenly surged to $63,000 per BTC in April, but then experienced a steep decline, bringing the price down to $31,000 per BTC in July of the same year.

In November 2021, Bitcoin reached a new peak with a record high of $69,000 per BTC before ending the year at $48,000.

The year 2022 marked a challenging year for the cryptocurrency market, with over $1.3 trillion in market capitalization lost and the value of Bitcoin dropping by over 60% from nearly $70,000 to $17,000 per coin.

In 2023, Bitcoin started positively with a price of $16,522 at the beginning of the year, increasing by approximately 49% compared to the beginning of the year. Predictions for 2023 suggest that the price of Bitcoin could drop to at least $9,550 before forming a macro bottom and then rising to $30,000 by mid and end of 2023.

At the beginning of 2024, at the time of writing this article, BTC is priced around $42,000, reaching as high as $49,000 after the news of Bitcoin ETF trading.

giá BTC 2024

Why does Bitcoin have value?

The value of Bitcoin has experienced significant fluctuations in recent years; however, this price does not fully reflect the core value of Bitcoin. Instead, it reflects the forces of supply and demand in the market.

The crucial point is that Bitcoin attains value primarily due to its advanced technology, which is its peer-to-peer payment method and the ability to eliminate intermediaries in the transaction process. This is one of the main reasons why Bitcoin exists and is widely used.

The price of Bitcoin can be influenced by various factors. Below are some common reasons considered to cause price fluctuations in Bitcoin:

  1. Profit-taking pressure from investors: When the price of Bitcoin rises sharply, some investors may decide to sell to take profits. Sudden selling can create selling pressure, leading to a decrease in the price of Bitcoin.
  2. Digital currency regulation: Regulations and actions from organizations and governmental agencies can significantly affect the price of Bitcoin. Tightening controls or legal events related to cryptocurrencies can create uncertainty and concerns, negatively impacting the price of Bitcoin.
  3. Impact of pandemics and variants: Global events such as the Covid-19 pandemic and the emergence of new variants such as Omicron can create volatility and uncertainty in the market. Investors may be concerned about the economic situation and the impact of the pandemic, leading to a withdrawal from risk assets like Bitcoin, causing its price to decrease.


Mechanism of Bitcoin Operation

  • Decentralized Network: Bitcoin operates on a decentralized network, meaning that data is not centralized at a single point. Instead, Bitcoin data is distributed across multiple nodes on the internet. This ensures the decentralization and stability of Bitcoin, as when some nodes encounter issues, data is still stored and transmitted by other nodes on the network.
  • Cryptography: Bitcoin uses cryptography to ensure the security and privacy of transactions. Each transaction is converted into a cryptographic block and linked to previous blocks in the transaction chain, forming a blockchain. Cryptography ensures that transactions cannot be altered or forged, while also protecting user privacy.
  • Supply and Demand: Bitcoin utilizes supply and demand mechanisms to determine its value. With a maximum supply limit of 21 million Bitcoins, when the supply is restricted and demand remains high, the price of Bitcoin increases. Furthermore, after each “halving” cycle, where mining rewards are halved, the rate of Bitcoin mining decreases over time, affecting new supply. It is estimated to take around 120 years to mine the remaining Bitcoins according to predictions.

Is Bitcoin Safe and Secure?

Bitcoin is a product of blockchain technology, a significant breakthrough in the field of finance. Blockchain can be envisioned as an electronic ledger where transaction information is stored and ensures the immutability of data. Data on the blockchain is distributed and confirmed through various interconnected computers in a network.

No individual or system can alter, delete, or overwrite data on the blockchain. However, adding new data requires consensus from all nodes in the system. This not only ensures immutability but also enhances the transparency of the system, as everyone can share information without intermediaries.


The cryptocurrency Bitcoin inherits a high level of security, with the process of issuance and distribution of BTC occurring automatically according to an algorithm. To carry out an attack and alter the quantity of BTC, a hacker not only needs to infiltrate a computer but also needs to breach more than half of the computers in the network, controlling at least 51% of the total number of distributed computers globally, and must do so simultaneously.

Furthermore, the Bitcoin network is protected through the process of recording information for each transaction on a new block, requiring consensus on the validity of that block before adding it to the blockchain. This process ensures the integrity and immutability of transactions, creating a secure and trustworthy environment for participants in the Bitcoin market.

How is Bitcoin mined?

The process of Bitcoin production occurs entirely automatically through a computer network, where this computer network utilizes the Proof-of-Work (PoW) mechanism. Computers participating in the network act as nodes, helping to maintain the operation of the entire network. Currently, there are two common methods of mining Bitcoin:

Mining through Cloud Technology (Cloud Mining): In this form, Bitcoin miners register to purchase mining contracts from an intermediary, acting as the setup and maintenance entity for the mining system. However, the costs for mining contracts are often quite high, and miners need to carefully research and select reputable providers to participate.

Mining with Hardware (Hardware Mining): In this form, miners must prepare the necessary equipment for mining, including mining machines, network systems, and related infrastructure. With this method, miners have the ability to adjust the volume, targets, and Bitcoin mining output. However, miners need to control associated costs to maintain the mining system, such as electricity bills, maintenance, operational expenses, and other incurred costs.

How many Bitcoins are there in total?

There are a total of 21 million Bitcoins, and no one can change this number, including Satoshi Nakamoto – the individual believed to be the creator of Bitcoin.


In reality, only about 19 million Bitcoins have been mined so far; however, the circulating supply of Bitcoin on the market is less than 19 million due to various factors. Some Bitcoins have been permanently lost because users have forgotten passwords or cannot access their storage wallets.

Additionally, some Bitcoins are also “frozen” and do not participate in daily transactions. Therefore, the actual available supply of Bitcoin on the market may be less than the mined amount, creating a situation of limited supply and increasing the value of each Bitcoin.

When to Buy Bitcoin?

Deciding on the ideal timing to buy Bitcoin requires caution and creativity to avoid risks and investor asset losses. The cryptocurrency (crypto) market fluctuates rapidly, with thousands of transactions occurring within seconds. Therefore, to place buy/sell orders at the right time, researching and selecting the appropriate method is crucial.

Trading platforms offer various types of preset orders such as Limit orders, Market orders, Post Only orders, Trailing Stop orders, etc., to assist investors in determining the most reasonable price and timing to buy.

However, the decision to buy Bitcoin also depends on market analysis, economic evaluations, and other factors. Typically, investors should seek support from financial experts or follow reliable sources of information to gain a comprehensive understanding and make decisions to buy Bitcoin based on reliable information and thorough analysis.

What to Consider When Investing in Bitcoin?

  • High investment risks: While investment planning and speculation can create opportunities for significant profits, the volatility of the cryptocurrency market is substantial and can lead to a sharp decline in investment capital.
  • Beware of scams: Scams, asset appropriation, and money laundering through cryptocurrencies still exist and have not been thoroughly addressed. Therefore, caution and thorough research before participating in any projects or exchanges are necessary.
  • Legal and regulatory aspects: Although Bitcoin and the cryptocurrency market offer many investment opportunities, many countries have not yet recognized or provided a legal framework for this activity. Investing in Bitcoin and cryptocurrencies still carries risks and lacks full legal support, as exemplified by the case of Vietnam.

Bitcoin and other cryptocurrencies are created with the aim of streamlining processes and reducing costs for transactions, although they still face many challenges regarding development and public acceptance of these digital assets. Hopefully, Tiệm Coin article has helped you understand more about Bitcoin and its special aspects.