What Is Bitcoin? A Plain English Guide for UK Beginners

Bitcoin is the world’s first and most valuable cryptocurrency. Created in 2009 by an anonymous figure known as Satoshi Nakamoto, it introduced the concept of digital money that operates without banks, governments, or any central authority. In 2026, Bitcoin has a market value of over $1 trillion and is held by major institutions including BlackRock, Fidelity, and dozens of publicly listed companies.

How Bitcoin Works

Bitcoin is a digital currency recorded on a public ledger called the blockchain. The blockchain is maintained by thousands of computers (called nodes) around the world, all of which hold a copy of every Bitcoin transaction ever made. No single entity controls this ledger — it’s maintained by consensus among the network’s participants.

New Bitcoin is created through a process called mining, where specialised computers compete to solve mathematical puzzles. The winner of each puzzle earns newly created Bitcoin. This process is energy-intensive by design — the difficulty of the puzzle makes it extremely expensive to attack or manipulate the Bitcoin network.

Why Only 21 Million Bitcoin Will Ever Exist

Nakamoto coded a hard limit of 21 million Bitcoin into the protocol. No government, company, or individual can change this cap. Approximately 19.7 million Bitcoin have already been mined as of 2026, with the remainder to be released gradually over the next century.

This fixed supply is central to Bitcoin’s value proposition. Unlike pounds sterling — of which the Bank of England can create any amount — no authority can inflate the Bitcoin supply. Proponents argue this makes it a superior store of value in an era of government deficit spending and money printing.

Why Do People Buy Bitcoin?

People buy Bitcoin for several reasons. Some see it as a long-term store of value — digital gold that will appreciate as the global money supply grows. Some use it for international transfers, particularly in countries with restricted banking access or currency controls. Some buy it speculatively, hoping to profit from price appreciation.