The origin of Bitcoin and its role today
Bitcoin emerged on January 3, 2009, when Satoshi Nakamoto mined the genesis block, embedding in its code the message "Chancellor on brink of second bailout for banks" — a direct reference to the 2008 financial crisis. It was a political statement: create a currency beyond the control of central banks, governments, and intermediaries.
Fifteen years later, Bitcoin has not replaced the dollar as its founders envisioned. It became something else, perhaps more powerful: a digital store of value. BlackRock holds tens of billions in BTC via its IBIT spot ETF (launched January 2024), MicroStrategy made it their primary treasury asset, and El Salvador made it legal tender in 2021.
How Bitcoin works technically
Bitcoin runs on a Proof-of-Work blockchain: hundreds of thousands of miners worldwide spend electricity to solve a mathematical puzzle (SHA-256). The first to solve it earns the right to validate the block and receives a BTC reward.
This reward halves roughly every 4 years — the halving. In 2009, each block was worth 50 BTC. After the 2024 halving, it's 3.125 BTC. Around 2140, the reward will be near-zero and the max supply (21 million) will be reached. This programmatic scarcity makes BTC a deflationary asset — the exact opposite of fiat currencies whose supply continuously expands.
Historical volatility and cycles
Bitcoin has experienced five drawdowns of more than 70 % since inception, and as many spectacular bull runs. The empirical rule: the 12-18 months following each halving coincide with a new all-time high. 2013 (×100 post-2012 halving), 2017 (×30 post-2016), 2021 (×8 post-2020), and the 2024-2026 cycle that pushed BTC above $100,000 for the first time.
Real use cases in 2026
- Store of value: 90 % of total crypto market cap during stress phases, BTC remains the crypto safe haven
- Cross-border payments via Lightning Network (layer 2): instant and near-free transactions, notably used in El Salvador and Nigeria
- Corporate treasury: MicroStrategy holds over 250,000 BTC, Tesla and Block (ex-Square) also hold reserves
- DeFi collateral via wrapped Bitcoin (WBTC, cbBTC) on Ethereum and other chains
Risks to understand before investing
Volatility is the first threat: Bitcoin lost 84 % in 2022. Concentration is also concerning: 2 % of wallets hold 95 % of supply. Regulatory risk remains real (USA, EU) although MiCA in Europe clarified the crypto framework. Finally, the energy impact of Proof-of-Work is regularly criticized — roughly 0.5 % of global electricity consumption, the equivalent of Argentina.