Imagine you have a piggy bank, but instead of physical coins made of metal, you have digital coins stored on a computer. That is basically what Bitcoin is! Bitcoin is a special kind of money that only exists on the internet. You cannot hold it in your hand like a dollar bill or a quarter. It is called cryptocurrency because it uses secret computer codes to keep it safe.
Unlike regular money, which is controlled by banks and governments, Bitcoin belongs to the people who use it. It works like a giant, shared notebook that everyone can see but no one can secretly change. This notebook is called a blockchain.
Here are the ten most valuable attributes that make Bitcoin special:
Bitcoin lives entirely on computers and phones. Because it is digital, you can send it to someone on the other side of the world in just a few minutes. You don't have to wait for a bank to open.
When you send Bitcoin, you send it directly to another person, like passing a note in class. There is no bank in the middle taking a fee or telling you what you can do with your money.
There will only ever be 21 million Bitcoins made. This makes it rare, like a limited-edition trading card. Because you cannot make more, it helps keep its value.
Bitcoin uses super-strong computer math called cryptography to protect it. This makes it very hard for hackers to steal money from people.
Anyone with an internet connection can use Bitcoin. You don’t need permission from a bank or to be a certain age to have a Bitcoin wallet.
You could travel across the world with a million dollars worth of Bitcoin just by remembering a secret password. It is much easier than carrying heavy bags of gold or cash.
One Bitcoin can be broken into tiny pieces, just like a dollar can be broken into pennies. The smallest unit is called a Satoshi, named after the creator of Bitcoin.
In the digital world, it is easy to copy and paste a picture. But with Bitcoin, the blockchain technology makes sure that a coin can only be used once. This stops people from cheating.
Once a transaction is added to the blockchain, it stays there forever. No one can erase it or change it, which makes it easy to prove who owns what.
The notebook (blockchain) is public. Anyone can look at it to see that the system is working correctly, even though they cannot see who owns which wallet.
