About bitcoin

Bitcoin is the world's first decentralised digital currency, operating entirely independently of central banks and other financial institutions. Launched in 2008 by Satoshi Nakamoto, bitcoin enables secure and transparent peer-to-peer transactions through blockchain technology. Since its inception, the bitcoin price has risen significantly. Its strong price performance and scarce nature continue to attract people worldwide. At Bitonic, the first bitcoin company in the Netherlands, we provide a reliable and secure platform for buying, selling, storing, and saving bitcoin.

On this page:

• What is bitcoin?
• How does bitcoin work?
• How is bitcoin used?
• How many bitcoin are there?
• Key features

What is bitcoin?

Bitcoin (BTC) is a digital currency and a decentralised financial system. It was introduced on October 31, 2008, with the publication of the Bitcoin Whitepaper by its pseudonymous creator, Satoshi Nakamoto. As a new form of money, bitcoin is used worldwide in various ways, including:

• A savings instrument for individuals
• An investment asset for institutional investors
• A tool for remittances and low-cost transactions

Unlike fiat currencies, bitcoin is not controlled by a central bank or government. Instead, it operates on the bitcoin blockchain, a transparent, decentralised network maintained by thousands of computers (nodes) worldwide.

Bitcoin as money & a protocol

Bitcoin consists of two core components:

• The bitcoin network (also known as the bitcoin protocol), which ensures secure transactions.
• The digital currency bitcoin (BTC), which users can buy, sell, store and send.

How does bitcoin work?

Are you looking to buy bitcoin or sell bitcoin? Then it's helpful to understand how this new form of digital money operates, as it functions differently from traditional monetary systems.

The bitcoin network is fully decentralised. No single entity controls it. Instead, thousands of independent computers (nodes) verify transactions, ensuring the security and integrity of the system. Each computer keeps a copy of the blockchain, preventing fraud and ensuring immutability.

Bitcoin transactions are peer-to-peer: funds are digitally transferred directly from one party to another, without a third party such as a bank. Transactions happen between bitcoin addresses.

A bitcoin wallet functions as a digital wallet for storing and managing funds. It securely holds private keys, which grant access to bitcoin addresses. These addresses consist of a unique string of numbers and characters, similar to a bank account number (IBAN).

An example of a bitcoin address: bc1pmzfrwwndsqmk5yh69yjr5lfgfg4ev8c0tsc06e

All bitcoin transactions are recorded and stored in the blockchain, a decentralised public ledger. The process of validating and adding transactions to this blockchain is called mining. Mining operates through Proof-of-Work (PoW) and is performed by miners who solve complex mathematical puzzles. In return, they receive rewards from the bitcoin protocol, introducing new bitcoin into circulation. This reward is pre-programmed into bitcoin’s source code and is publicly verifiable.

• Miners use specialised computers to solve cryptographic puzzles.
• The first miner to solve the puzzle adds the next block to the blockchain.
• Miners receive newly created bitcoin (block rewards) and transaction fees for their work.

The mining process secures the bitcoin network and ensures transactions cannot be altered or reversed.

Each transaction becomes more secure as additional blocks are added on top of it. A transaction is generally considered fully confirmed after six blocks, which takes about one hour on average.

Bitcoin offers complete financial control. You are your own bank.

How is bitcoin used?

Bitcoin has multiple use cases, including:

• Online and offline payments for goods and services.
• Cross-border remittances with lower fees than banks.
• Investment & savings, acting as a hedge against inflation.

Because bitcoin operates without intermediaries, it offers financial freedom and sovereignty unmatched by traditional banking systems.

How many bitcoin are there?

There will be a maximum of 21 million bitcoin in circulation. Currently, about 1.5 million bitcoin still need to be mined. Every 10 minutes, a new block is mined on the bitcoin network. The block reward halves every 210,000 blocks, which is approximately every four years.

This important event is known as the bitcoin halving (or "halvening"). The initial block reward started at 50 BTC and has now, after four halvings, been reduced to 3.125 BTC. The next bitcoin halving is expected in 2028, at which point the reward will drop to around 1.5 BTC per block.

The block reward and bitcoin halving ensure two essential aspects:

• The integrity of distribution: The source code ensures that even Satoshi Nakamoto could not pre-assign coins to themselves. Every bitcoin is earned through mining.
• Scarcity & fixed supply: Bitcoin’s total supply is hard-capped at 21 million, making it fundamentally scarce compared to traditional currencies. Inflation is predictable, transparent, and finite.

Bitcoin is a decentralised currency, resistant to censorship and external control. It allows users to directly control their finances without reliance on third parties.

Bitcoin price and predictions

The bitcoin price has risen significantly since its launch, driven by scarcity and growing adoption. In times of economic uncertainty and central bank money creation, investors seek scarce assets like bitcoin. Predicting the bitcoin price remains challenging, especially in the short term. The price is influenced by market cycles, demand, regulations, and adoption. What is certain: the total supply is capped at 21 million, making bitcoin fundamentally different from inflationary currencies. Check the current bitcoin price on our bitcoin price page for real-time updates and analysis.

Key features

Bitcoin is more than just a digital currency; it’s a powerful tool for financial independence and a hedge against inflation. As the world moves towards a more decentralised future, bitcoin offers a secure, transparent, and accessible way to store and grow your wealth.

Here are some key features of bitcoin:

Inclusive money

Bitcoin operates 24/7, 365 days a year, providing access to financial services for people regardless of income, background, or location.

Scarcity

Bitcoin's supply is limited to 21 million coins, making it an asset with predictable issuance and supply through the block reward halving.

Divisibility

Bitcoin is divisible into 100 million satoshis, enabling microtransactions and accessibility regardless of the bitcoin price. You can start with as little as 10 euros at Bitonic.

Censorship-resistant

Bitcoin transactions cannot be blocked or reversed by third parties, ensuring users maintain full control over their funds.

Worldwide

Bitcoin enables fast, cost-effective global transactions without intermediaries, making it ideal for international payments.

Lightning network

The Lightning Network allows instant, low-cost transactions, improving bitcoin's scalability for everyday use.

Buy bitcoin with Bitonic

Looking to buy bitcoin safely or check the latest bitcoin price? At Bitonic, we make buying and selling bitcoin simple, secure, and transparent.

• Buy bitcoin instantly with iDEAL.
• Sell bitcoin quickly and receive euros.
• Set up a bitcoin savings plan with Bitonic Savings.
• Securely store your bitcoin for free at Bitonic or transfer it to your personal wallet.
• Guaranteed security & privacy—your data stays protected.
• Personal customer support via email, chat, or phone.
• Registered with the Dutch Central Bank (DNB) as a crypto service provider.

Whether you're new to bitcoin or an experienced investor, Bitonic provides the easiest and safest way to buy and sell bitcoin.