Bitcoin is a digital asset and, at the same time, a network that allows people to send value to each other without a central bank, state or single company controlling the whole system.
It was created as a response to the question of whether money can exist without depending on one central authority. Instead, Bitcoin runs on rules written into its technology and verified by a network of computers around the world.
Bitcoin is especially interesting because of several key features:
- It has a limited supply.
- There can only ever be a maximum of 21 million bitcoins. Unlike regular currencies, it is not possible to simply “print” more Bitcoin based on current needs.
- It works without a central authority.
- Bitcoin is not controlled by one bank, state or company. Transactions are verified by a decentralised network, meaning many participants at the same time.
- It is digital.
- Bitcoin does not have a physical form like a coin or banknote. It exists only digitally, but ownership and transfers are recorded on the blockchain.
- It is global.
- Bitcoin can be sent across countries, regardless of borders or local currencies. All you need is a Bitcoin address and access to a wallet.
- It is transparent.
- All Bitcoin transactions are recorded on a public blockchain. This does not mean that everyone immediately sees the name of a specific person, but the movement of Bitcoin between addresses is publicly traceable.
Because of its limited supply, global availability and independence from one central authority, Bitcoin is sometimes also called digital gold. Like physical gold, it is often seen as an asset that can help preserve value over the long term. The difference is that Bitcoin exists only digitally and its price usually fluctuates more than the price of gold.
For many people, Bitcoin is interesting because it has clearly defined rules, limited supply and works independently of one central system. These qualities make it one of the best known forms of digital assets.
At the same time, it is good to remember that Bitcoin is a much younger asset than gold and its price can fluctuate more. Over shorter periods, it can rise or fall quickly. That is why it makes more sense to think about it over the long term and see it as a more dynamic part of savings, not as a guarantee of immediate returns.
In the Littlebit app, new saving into Bitcoin is currently temporarily paused due to the MiCA licensing process. But Bitcoin is not disappearing from the Littlebit story. Users who already have Bitcoin saved in the app can still see it in the app and work with it according to the available options.
At Littlebit, we see Bitcoin as an important digital asset with long-term potential. Not as a replacement for everything else, but as one form of value that can help diversify long-term savings alongside physical gold and regular money.