The short answer
Bitcoin (capital B) usually means the network and its rules. bitcoin or BTC means the units transferred on that network. People use the word “Bitcoin” for both, so context matters.
The network is maintained by many independent computers around the world. They share and check transactions against common rules. There is no single company that operates the Bitcoin protocol, although exchanges, wallet makers, miners and other businesses offer services around it.
How does Bitcoin work?
A Bitcoin transaction is a signed message that says how previously received bitcoin should be spent. The network relays transactions, and miners group valid transactions into blocks. Each block links to the block before it, forming a public transaction history called the blockchain.
Full-node software independently checks that blocks and transactions follow the rules. Mining uses proof of work to propose blocks and make rewriting history costly. A transaction may take time to receive confirmations; the number of confirmations people consider adequate depends on the amount and context.
What is a Bitcoin wallet?
A wallet manages the keys used to receive and spend bitcoin. The bitcoin is recorded on the network; a wallet is not a container holding coins. Some services hold keys for customers, while a self-custody wallet lets a user control keys directly. Self-custody brings backup and recovery responsibilities. See our Bitcoin wallet guide.
How are new bitcoins issued?
When miners add a valid block, the protocol allows a block subsidy to be created under its schedule, along with transaction fees paid by users. The subsidy decreases at set block-height intervals. Bitcoin’s issuance schedule is designed to approach a maximum of 21 million BTC; it is not controlled by a company that can simply choose to issue more under the existing rules.
What Bitcoin does—and does not—do
- It can let users send value on a shared network without asking one central payment operator to maintain the ledger.
- It makes transaction history and protocol rules publicly inspectable, though addresses do not automatically reveal a person’s identity.
- It does not guarantee that a payment can be reversed, that a wallet provider will remain available, or that BTC will keep its market price.
- It is not anonymous by default, risk-free, or a guaranteed way to make money.
Bitcoin can be technically interesting while still being unsuitable for a particular person. The market price can change sharply, and users can lose funds through mistakes, scams, lost keys or service failures.
Where to learn next
Explore our Bitcoin history timeline, the debate over why people value Bitcoin, or how buying works. Take time to understand the risks before making a financial decision.
Sources and further reading
- Bitcoin.org FAQ — a project-maintained overview of Bitcoin and how it works.
- Bitcoin: A Peer-to-Peer Electronic Cash System — the 2008 paper describing the original design.
- Bitcoin Developer Guide — technical reference to transactions, blocks and the peer-to-peer network.
This is general education, not investment advice. Bitcoin involves significant risk, including loss of the amount spent. Protocol details are summarized for beginners; consult primary technical materials for implementation questions.