Bitcoin has evolved from an obscure digital experiment into one of the most talked-about assets of the 21st century. From its mysterious origins to becoming a global financial phenomenon, Bitcoin continues to captivate investors, technologists, and everyday users alike. This guide breaks down everything you need to know—what Bitcoin is, how it works, its history, and what the future may hold—all while keeping the core principles intact: decentralization, scarcity, and financial sovereignty.
Understanding Bitcoin: Digital Gold in the Modern Era
At its core, Bitcoin is the world’s first and most recognized cryptocurrency. Unlike traditional fiat currencies such as the US dollar or New Taiwan Dollar, Bitcoin operates entirely in the digital realm and is not controlled by any government or central authority. Instead, it runs on a decentralized network of computers (nodes) spread across the globe.
This decentralization means transactions happen directly between users—peer-to-peer—without intermediaries like banks. As a result, fees are often lower, and transaction records are secured through cryptography on a public ledger known as the blockchain, making them nearly impossible to alter.
Because of its capped supply—only 21 million Bitcoins will ever exist—it's often compared to digital gold. This built-in scarcity makes Bitcoin an attractive store of value, especially during times of inflation and economic uncertainty.
👉 Discover how Bitcoin is reshaping modern finance—start your journey today.
The Mystery of Satoshi Nakamoto: Who Created Bitcoin?
Bitcoin’s story begins in 2008 during the global financial crisis. A person (or group) using the pseudonym Satoshi Nakamoto published a groundbreaking whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” This document laid out a vision for a trustless digital currency that didn’t rely on banks or governments.
Despite Bitcoin’s massive success—reaching trillions in market value—the true identity of Satoshi Nakamoto remains unknown. Some believe Satoshi was a lone genius cryptographer; others think it was a team or even a government-backed project. But the anonymity itself reflects Bitcoin’s philosophy: no single entity should control the system.
Satoshi disappeared from public view in 2011, leaving behind not just code, but a revolutionary idea—that money can be free from centralized control.
How Is Bitcoin Created? The Truth About Mining
Bitcoin isn’t printed—it’s mined. But unlike traditional mining, this process involves powerful computers solving complex mathematical problems using the SHA-256 algorithm.
Miners compete to validate new blocks of transactions. The first to solve the puzzle gets to add the block to the blockchain and is rewarded with newly minted Bitcoin. This mechanism, called Proof-of-Work (PoW), ensures network security and prevents fraud.
Each block contains a batch of recent transactions, and once confirmed, it becomes part of an immutable chain—hence the name blockchain. Every node in the network verifies these blocks, maintaining transparency and trust without central oversight.
However, PoW has drawn criticism due to its high energy consumption. Estimates suggest Bitcoin mining uses as much electricity as some small countries. That said, many mining operations are now shifting toward renewable energy sources to reduce environmental impact.
PoW vs. PoS: Two Paths to Consensus
While Bitcoin uses Proof-of-Work, other blockchains like Ethereum 2.0 use Proof-of-Stake (PoS):
- PoW (Bitcoin): Miners use computing power to secure the network; high energy use.
- PoS (Ethereum, Cardano): Validators "stake" their own coins to verify transactions; far more energy-efficient.
Though PoS offers sustainability benefits, Bitcoin’s PoW model remains foundational to its security and decentralization.
What Is the Bitcoin Halving? A Built-In Economic Engine
One of Bitcoin’s most fascinating features is the halving event, which occurs approximately every four years—or every 210,000 blocks mined.
During each halving, the reward given to miners is cut in half. This slows down the rate at which new Bitcoins enter circulation, mimicking scarcity and creating deflationary pressure.
Here’s a look at Bitcoin’s halving history:
- 2012: Block reward dropped from 50 BTC to 25 BTC
- 2016: Reduced to 12.5 BTC
- 2020: Cut to 6.25 BTC
- 2024: Further reduced to 3.125 BTC
This mechanism ensures that Bitcoin’s total supply will never exceed 21 million, with full issuance expected around the year 2140.
Historically, major price rallies have followed halving events within 12–18 months. While past performance doesn’t guarantee future results, many investors watch halvings closely as potential catalysts for growth.
Frequently Asked Questions
Q: Does the halving always lead to higher prices?
A: Not necessarily. While previous halvings were followed by bull runs, external factors like regulation, macroeconomic trends, and market sentiment also play crucial roles.
Q: Why does Bitcoin have a fixed supply?
A: Scarcity is key to Bitcoin’s value proposition. Unlike fiat money, which central banks can print endlessly, Bitcoin’s capped supply protects against inflation.
Q: Can I still mine Bitcoin profitably today?
A: Individual mining is extremely difficult due to high competition and hardware costs. Most miners join pools or invest in cloud mining services instead.
The $800 Million Pizza: The Legend of Bitcoin Pizza Day
On May 22, 2010, programmer Laszlo Hanyecz made history by buying two pizzas for 10,000 Bitcoins—then worth about $41. Today, that same amount would be worth hundreds of millions of dollars.
This event is now celebrated annually as Bitcoin Pizza Day, symbolizing both the early days of crypto and the astonishing growth of Bitcoin’s value.
Back then, Bitcoin had little practical use. It wasn’t until 2011 that it reached parity with the US dollar. Since then, its price has seen dramatic swings:
- 2009: ~$0.0008 per BTC
- 2011: First hit $1
- 2013: Broke $100 amid Cyprus banking crisis
- 2021: Peaked at $69,000
- 2024: Surpassed $75,000 after the latest halving
- 2025: Briefly crossed $100,000 amid renewed institutional interest
These milestones highlight Bitcoin’s transformation from a niche experiment to a mainstream asset class.
👉 See how early decisions shape long-term gains—learn what smart investors do differently.
Is Bitcoin Legal in Taiwan?
Yes—Bitcoin is legal in Taiwan. However, it's classified as a "virtual commodity" rather than legal tender by the Financial Supervisory Commission (FSC). This means it's treated more like an investment asset (similar to stocks or gold) than actual currency.
Since 2021, Taiwan has enforced stricter regulations under the Anti-Money Laundering Act, requiring cryptocurrency exchanges to implement KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures. Users must verify their identity when trading on licensed platforms.
Always use regulated exchanges like those listed by TWVASP for safety and compliance. Avoid unverified P2P trades or private sellers—they carry significant risk.
How to Buy and Store Bitcoin Safely
Entering the world of Bitcoin starts with choosing a secure way to buy and store it.
Where to Buy Bitcoin in Taiwan
| Method | Pros | Cons |
|---|---|---|
| Local Exchanges | Easy TWD deposits, compliant | Higher fees (~0.5–1.5%) |
| International Platforms | More coins available | Complex fiat onboarding |
| P2P Trading | Better rates, privacy | Risk of scams |
| Bitcoin ATMs | Instant cash access | Very high fees (5–10%) |
Popular local options include MAX and MaiCoin—both regulated and user-friendly.
How to Store Your Bitcoin Securely
Your choice of wallet matters:
- Hot Wallets: Connected to the internet (e.g., mobile apps). Convenient but more vulnerable.
- Cold Wallets: Offline hardware devices (e.g., Ledger). Highly secure for long-term holding.
A major risk? Losing your private key—the password that controls your funds. Reports estimate that between 17% and 23% of all Bitcoins are already lost forever due to forgotten keys or damaged devices.
That’s why user-friendly wallets with strong security and recovery options are essential for newcomers.
👉 Protect your digital wealth—explore secure ways to manage your crypto portfolio now.
The Future of Bitcoin: Revolution or Bubble?
Bitcoin stands at a crossroads. On one hand:
- Institutional adoption is rising (Tesla, MicroStrategy).
- Countries like El Salvador have experimented with making it legal tender.
- The 2024 halving sparked renewed bullish momentum.
On the other hand:
- Environmental concerns persist.
- Regulatory scrutiny is increasing worldwide.
- Scalability remains a challenge compared to newer blockchains.
Yet one thing is clear: Bitcoin has already changed finance forever. Whether it becomes digital gold or fades into history, its legacy as the pioneer of decentralized money is secure.
Final Thoughts
Bitcoin is more than just technology—it's a movement toward financial freedom. Its journey from a $41 pizza purchase to an $800 million legend shows how innovation can redefine value itself.
For those considering entry into this space: educate yourself, start small, prioritize security, and think long-term.
The future of money may not be controlled by banks—but by code, community, and choice.
Frequently Asked Questions
Q: Can I buy less than one Bitcoin?
A: Yes! Bitcoin is divisible up to eight decimal places (1 satoshi = 0.00000001 BTC), so you can invest even small amounts.
Q: What determines Bitcoin’s price?
A: Supply and demand dynamics, macroeconomic factors, investor sentiment, regulatory news, and adoption trends all influence price.
Q: Is Bitcoin anonymous?
A: Not fully. While wallet addresses aren’t directly linked to identities, transactions are public on the blockchain. With enough data analysis, anonymity can be compromised.
Q: Will Bitcoin replace traditional money?
A: Unlikely in the short term. However, it may serve as a global reserve asset or inflation hedge similar to gold.
Q: How do I cash out Bitcoin to TWD?
A: Use a licensed exchange like MAX or MaiCoin to sell BTC and withdraw funds directly to your bank account.
Q: What happens after all Bitcoins are mined?
A: Miners will earn income through transaction fees instead of block rewards, incentivizing them to keep securing the network.