Bitcoin: What It Is, How It Works, and Why It Still Dominates Crypto

When you hear Bitcoin, the first and most widely used cryptocurrency, built on a decentralized blockchain network that records every transaction publicly and permanently. Also known as BTC, it’s not just digital money—it’s a protocol that lets people send value without banks, governments, or middlemen. Unlike stocks or fiat currencies, Bitcoin doesn’t rely on a central authority. Its supply is capped at 21 million coins, and new ones are created through mining—a process that secures the network by solving complex math problems. This design makes it resistant to inflation and political interference, which is why millions still hold it as a store of value, even as newer coins come and go.

Bitcoin’s impact goes beyond price charts. It’s tied to blockchain, the underlying technology that maintains Bitcoin’s public ledger, ensuring transparency and security without a central server. Every Bitcoin transaction is verified by nodes across the globe and added to a chain of blocks, making it nearly impossible to alter. This same tech powers DeFi platforms, NFTs, and even digital identity systems—but Bitcoin remains the most trusted and battle-tested example. Then there’s crypto tax, the IRS rule that treats Bitcoin as property, not currency, meaning every trade, spend, or gift triggers a taxable event. If you bought Bitcoin in 2020 and used it to pay for coffee in 2024, you owe capital gains tax on the difference. Most people don’t track this, and the IRS is cracking down. And don’t forget Bitcoin mining, the energy-intensive process that creates new Bitcoin and validates transactions, which has led to outright bans in places like Kosovo and Algeria over grid overload concerns. These aren’t abstract ideas—they’re real, happening right now, and shaping how you interact with Bitcoin.

What you’ll find below isn’t a list of price predictions or hype cycles. It’s a collection of real stories: how Bitcoin’s design influenced other coins, how governments reacted to its rise, and how everyday users got caught in the tax trap. You’ll read about failed projects that tried to copy Bitcoin’s success, regulatory battles that changed the rules, and mining bans that forced entire countries to rethink their energy policies. This isn’t about getting rich quick. It’s about understanding what Bitcoin really is—and why it still matters, even when the market feels chaotic.