Bitcoin, from first principles
Everything a new Bitcoiner needs to know. No jargon, no hype — just the facts, the history, and the context that will change how you see money.
Six facts worth memorising
Get these into your head and most of Bitcoin starts to make sense.
The moments that shaped Bitcoin
From a nine-page whitepaper to a multi-trillion-dollar macro asset — the story in order.
The Whitepaper
An author using the name Satoshi Nakamoto publishes "Bitcoin: A Peer-to-Peer Electronic Cash System" — nine pages describing money without banks.
Genesis Block Mined
The first block is mined, carrying a headline about bank bailouts embedded in its data — a pointed comment on the system Bitcoin was built to sidestep.
Bitcoin Pizza Day
10,000 BTC are swapped for two pizzas — the first real-world purchase. Those coins would be worth a fortune at later prices.
1 BTC = 1 USD
For the first time, a single bitcoin trades at parity with the US dollar — a milestone that felt impossible only months earlier.
First Halving
The block reward drops from 50 to 25 BTC — the first programmed supply shock, and proof the halving mechanism works as designed.
First $1,000
Bitcoin breaks $1,000 for the first time, catching mainstream media attention and a fresh wave of curiosity.
Second Halving
The reward falls from 25 to 12.5 BTC, setting the stage for the 2017 bull run toward $20,000.
First ~$20,000
Bitcoin reaches an all-time high near $19,800, drawing worldwide attention and the first serious institutional curiosity.
Third Halving
The reward drops from 12.5 to 6.25 BTC, just ahead of the explosive 2020–2021 cycle.
First Legal Tender
El Salvador becomes the first country to adopt Bitcoin as official legal tender alongside the US dollar.
First ~$69,000
Bitcoin sets a then-record near $69,000 as mainstream and corporate adoption accelerates.
US Spot ETFs Approved
US regulators approve spot Bitcoin ETFs — a watershed that opened a regulated on-ramp for institutional capital.
Fourth Halving
The reward drops from 6.25 to 3.125 BTC. Bitcoin's new-supply rate is now lower than gold's annual production.
First $100,000
Bitcoin crosses six figures for the first time, cementing its place as a global macro asset.
All-Time High ~$126,000
Bitcoin sets its record to date around $126,210, driven by heavy ETF inflows — before a sharp correction into 2026.
Fifth Halving
The reward is expected to halve again from 3.125 to ~1.5625 BTC, continuing the pre-set issuance schedule.
The Last Bitcoin
The 21-millionth and final bitcoin is mined. After that, miners are paid only in transaction fees, and the supply is complete forever.
Yearly highs, 2009 to today
The highest price Bitcoin reached in each calendar year. Volatility is part of the story — these are peaks, not averages.
Historical yearly highs, rounded. * 2026 is ongoing. This is educational data, not financial advice — past prices never guarantee future ones.
How big is a sat?
"Sats" can feel abstract at first. Here's the simple truth: you don't need a whole bitcoin — you stack the smallest units, a few at a time.
The words, in plain English
Tap any term to expand its definition. No prior knowledge assumed.
Decentralised digital money that runs on a worldwide peer-to-peer network. No bank, company, or government controls it — the rules are enforced by software and maths, and only 21 million will ever exist.
The smallest unit of Bitcoin, named after its creator. One bitcoin = 100,000,000 sats. You don't need a whole coin — most people stack sats, a little at a time.
The public ledger of every Bitcoin transaction ever made, grouped into "blocks" that are chained together in order. Anyone can inspect it, and no one can quietly rewrite history.
Roughly every four years, the reward miners get for adding a block is cut in half. This steadily slows the creation of new coins until issuance hits zero around 2140.
The process where specialised computers compete to validate transactions and add the next block. Winners earn newly issued bitcoin plus fees — and in doing so, secure the network.
Software or a device that stores the keys to your bitcoin and lets you send and receive it. The wallet holds your keys, not the coins themselves — the coins live on the blockchain.
The secret that proves ownership of your bitcoin, usually backed up as 12–24 words. Anyone with it controls the funds — so it must never be shared, photographed, or typed into a website.
Originally a typo of "hold," now shorthand for holding bitcoin through ups and downs rather than trading it. A long-term mindset over short-term moves.
A layer built on top of Bitcoin for instant, very low-cost payments — ideal for small, everyday amounts. It's how SatsEarn pays out the sats you stack.
Buying or earning a fixed small amount on a regular schedule instead of all at once. It smooths out volatility and removes the guesswork of trying to time the market.
Government-issued money like the dollar, euro, or rupee. Its supply can be expanded by central banks — the opposite of Bitcoin's fixed cap.
A scarcity model comparing existing supply ("stock") to yearly new production ("flow"). Each halving cuts the flow, raising the ratio. It's a popular framework, not a guarantee.
The waiting room for unconfirmed transactions. When it's busy, fees rise as transactions compete to be included in the next block; when it's quiet, fees fall.
A core Bitcoin principle: if someone else holds your keys (like an exchange), you're trusting them with your money. Holding your own keys means holding your own bitcoin.
Learn it, then earn it
Take what you just read and stack real sats with SatsEarn's Bitcoin quizzes — answer questions, prove you know your stuff, and get paid in Bitcoin.
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