THE GIST OF IT
- Bitcoin is a digital currency that lets you send, receive, and store value without relying on banks or intermediaries.
- Bitcoin runs on a decentralized network. No single person, company, or government controls it.
- There will only ever be 21 million bitcoin. New bitcoin is created through mining, and the supply rate is cut in half roughly every four years.
- Bitcoin's price is volatile. It can rise or fall significantly. Only buy what you can afford to lose.
- With Cash App, you can buy, sell, and send bitcoin starting with as little as $1.1
Who created bitcoin?
In 2008, someone using the pseudonym Satoshi Nakamoto published a paper called Bitcoin: A Peer-to-Peer Electronic Cash System. The idea: digital money that works without banks or central authorities, secured by math and code instead of institutions.
On January 3, 2009, the first block, called the Genesis Block, was mined, launching the Bitcoin Network. What started as an experiment in digital money has become a global asset used by millions of people.
What is bitcoin?
Bitcoin is a digital currency. Unlike the cash in your wallet, bitcoin exists only as entries in a digital ledger. There are no physical coins or bills. You can send it, receive it, hold it, or sell it all digitally.
Here's what makes bitcoin different from traditional money:
It's decentralized. Bitcoin isn't controlled by any single bank, company, or government. The network is maintained by thousands of computers around the world. No one entity can manipulate the supply or freeze your funds on the network itself.
It's digital and global. You can send bitcoin to anyone, anywhere in the world, at any time no banking hours, no intermediary required. All you need is an internet connection.
It's limited in supply. There will only ever be 21 million bitcoin. You can't print more. This built-in scarcity is a core part of bitcoin's design and one of the reasons people see it as a store of value.
It carries risk. Bitcoin's price can change significantly in a short period. It's not a guaranteed way to make money. The value can go up or down, and you can lose some or all of what you put in.
How bitcoin works
Bitcoin transactions are recorded on a blockchain—a public digital ledger maintained by a network of computers around the world.
When someone buys, sells, sends, or receives bitcoin, that transaction is grouped with others into a "block." The block is verified, encrypted, and added to the chain of all previous blocks. Because every block is linked to the one before it, and because the verification happens across thousands of computers simultaneously, the record is extremely difficult to alter.
Key terms:
- Blockchain: The digital ledger that records every bitcoin transaction. It's public, meaning anyone can view it, and decentralized, meaning no single entity controls it.
- Mining: The process of verifying transactions and adding new blocks to the blockchain. Miners use specialized computers to solve complex mathematical puzzles. When a miner solves one, they add the next block and receive newly created bitcoin as a reward.
- Proof of work: The system that requires miners to solve puzzles to verify transactions. This computational effort is what secures the network and prevents fraud.
Bitcoin mining and halving
Mining is how new bitcoin is created and how transactions are verified. It's also how bitcoin's supply is controlled over time.
How mining works
Specialized computers compete to solve mathematical puzzles called hashes, which are unique strings of numbers and letters that represent data. The first computer to find the correct hash for a new block of transactions gets to add that block to the blockchain and receives a bitcoin reward.
This process serves two purposes: it verifies transactions and it creates new bitcoin at a controlled, predictable rate.
How long does it take to mine bitcoin?
Miners don't mine individual bitcoin, they mine blocks. As of 2024, each block currently rewards 3.125 bitcoin. The network is designed so that a new block is mined approximately every 10 minutes, regardless of how many miners are competing
What is bitcoin halving?
Roughly every four years, the mining reward is cut in half. This is called a "halving." It reduces the rate at which new bitcoin enters circulation.
Previous halvings occurred in 2012, 2016, 2020, and 2024. Historically, halvings have been followed by price increases as reduced supply meets existing or growing demand. However, past performance doesn't guarantee future results.
When will the last bitcoin be mined?
Based on the current schedule, the last bitcoin is expected to be mined around the year 2140.
What is bitcoin worth?
Bitcoin's price fluctuates constantly based on supply and demand, similar to stocks. When more people want to buy than sell, the price goes up. When more want to sell than buy, it goes down.
Factors that influence bitcoin's price:
- Market sentiment and news events
- Regulatory changes
- Competition from other digital currencies
- The limited supply (scarcity)
- Macroeconomic factors like inflation and interest rates
How much is one bitcoin?
The price changes every second that markets are active. You can check the current price on digital currency exchanges or directly in Cash App. Go to the Money tab and tap Bitcoin.
How many bitcoin exist?
Approximately 20 million bitcoin are in circulation out of the maximum 21 million that will ever exist. Once all 21 million are mined, no new bitcoin will be created.
How to buy bitcoin
You don't need to buy a whole bitcoin; most platforms let you buy a fraction. On Cash App, you can start with as little as $1.
When you buy bitcoin, you get two keys:
- Public key: Your bitcoin address. Share it with anyone who wants to send you bitcoin.
- Private key: The password that lets you access and spend your bitcoin. Never share this.
Where to buy bitcoin
- Digital currency exchanges offer a wide selection of digital currencies and trading features.
- Brokerage apps offer bitcoin alongside stocks and ETFs.
- Financial platforms like Cash App let you buy bitcoin with a simple interface, starting with as little as $1. You can also set up Auto Invest on a schedule, convert a percentage of your paycheck into bitcoin, or use Round Ups to invest spare change from purchases.
How to store and secure bitcoin
Storing bitcoin safely means choosing the right wallet and following security basics. The decisions you make determine whether your bitcoin stays protected or becomes vulnerable to theft and loss.
Bitcoin wallets
A bitcoin wallet stores your keys and lets you send and receive bitcoin. There are several types:
Hot wallets are connected to the internet (mobile apps, web wallets). Convenient for frequent transactions.
Cold wallets are offline storage devices (hardware wallets like Bitkey). More secure for long-term holding because your private keys are never exposed to the internet.
Custodial wallets (like Cash App) manage your private keys for you. You get convenience and customer support, but the platform holds your keys. Cash App is full reserve, meaning they hold your bitcoin 1:1 and never lend it out.
Non-custodial wallets (like Bitkey) give you full control of your private keys, and full responsibility for keeping them safe.
Security best practices
- Enable two-step authentication so your face, fingerprint, or PIN is required to access your bitcoin.
- Use strong, unique passwords for every account.
- Never share your private keys with anyone.
- Keep backups of important wallet information.
- Consider cold storage for larger amounts you don't plan to move frequently.
How to use bitcoin
Bitcoin works as an investment, a payment method, and a way to send money. How you use it depends on your goals—whether you're holding it long-term, spending it, or transferring it to someone else.
As an investment
Many people buy bitcoin and hold it, expecting its value to increase over time. Bitcoin is sometimes compared to gold because of its limited supply. Like any investment, there's risk; the price can drop as well as rise, and you can lose money. How much you buy should depend on your financial situation and what you can afford to lose.
As a payment method
A growing number of businesses accept bitcoin directly, including businesses that use Square.
To send money
Bitcoin enables direct transfers to anyone with a bitcoin wallet, anywhere in the world. This can be faster and cheaper than traditional wire transfers, especially for international payments.
To receive money
Share your bitcoin address with the sender. The transaction appears in your wallet once it's confirmed on the network.
How long do bitcoin transactions take?
On the Bitcoin Network's blockchain: Speed depends on network traffic. Transactions can take minutes to hours. Most apps, including Cash App, notify you when the transaction is confirmed. You can pay a fee to prioritize faster processing.
On the Lightning Network: Near-instant and free on Cash App. Share your Lightning Network address or QR code. Both wallets must support Lightning Network for this to work.
How to sell bitcoin
Most exchanges and apps let you sell bitcoin and withdraw cash to your bank account. Selling is typically instant. Transferring the cash to your bank account takes 1–3 business days.
How to transfer bitcoin between wallets
Enter the recipient's bitcoin address and the amount you want to send. Double-check the address — bitcoin transactions can't be reversed.
Bitcoin on Cash App
Cash App lets you buy, sell, send, and receive bitcoin directly in the app. You can start with as little as $1.
Buy bitcoin. Open Cash App, tap the Bitcoin tab, enter the amount, and confirm. Your bitcoin appears in your Cash App bitcoin wallet.
Sell bitcoin. Tap Sell from the Bitcoin tab, enter the amount, and the funds are added to your Cash App balance.
Send bitcoin. Tap Send, enter a bitcoin address or scan a QR code, specify the amount, and confirm. You can use your bitcoin on-chain address or your lightning wallet address. Choose your withdrawal speed to control how quickly your funds get to the other wallet.
Receive bitcoin. Share your bitcoin address (on-chain or lightning) or QR code with the sender.
Transfer to an external wallet. You can move your bitcoin to any external wallet at any time. You're not locked in.
Automatic bitcoin purchases
Cash App offers several ways to buy bitcoin automatically, with no fees:
- Round Ups. Round up Cash App Card purchases to the nearest dollar and invest the spare change in bitcoin.
- Paid in Bitcoin. Convert a percentage of every direct deposit paycheck into bitcoin.
- Auto Invest. Set a recurring purchase on a daily, weekly, or biweekly schedule.
Security
Cash App uses encryption, secure servers, and stores the majority of bitcoin in cold storage offline and disconnected from internet threats. As a custodial wallet, Cash App manages your private keys on your behalf.
Fees
Cash App may charge a fee when you buy or sell bitcoin. The exact amount is displayed before you confirm the transaction. Automatic purchases through Auto Invest, Round Ups, and Paid in Bitcoin have no fees.
Getting started with bitcoin doesn't require technical expertise or large amounts of money. The technology has been simplified into user-friendly platforms like Cash App, where you can start with as little as $1.
Ready to participate in the future of money? Download Cash App and experience bitcoin for yourself.
