-
@ Bitcoin Well
2025-03-11 20:49:00
Bitcoin is the first form of digital money that is controlled by "people" from around the world rather than a central authority, so it can’t be changed arbitrarily, which makes it arguably the most sound form of digital money.
Here are the 5 W’s ( What, Who, Why, When and Where) of bitcoin and what it matters to you:
## What is Bitcoin?
Bitcoin is a cryptocurrency. Much like traditional currency, it can be purchased, earned and spent, but all Bitcoin transactions take place online.
The Bitcoin network was created to be open-source and decentralized, meaning it is an electronic payment system unencumbered by third parties, such as a bank. This peer-to-peer system prevents a single person or entity from controlling the currency. One bitcoin (BTC) is equivalent to 100,000,000 satoshis (sats). This means that you can own a fraction of a bitcoin, just like cents in a dollar.
<img src="https://blossom.primal.net/e630e92637ff82c95120db602019f279952e49843a64002c2468e71f2bd6110f.png">
## Who created Bitcoin?
A programmer using the pseudonym of Satoshi Nakamoto created the protocol for Bitcoin. Nobody really knows who Satoshi is. Some say it might be a collective of people, while others say it is only one person.
The guide Satoshi created also explained the principles of cryptography and how it works to create a trustless payment system. Being trustless may sound spooky, but it simply means that you are not required to trust anyone in order for the system to work.
## When was Bitcoin created?
Satoshi laid out the foundation of Bitcoin when they presented the white paper on October 31st, 2008.
This white paper outlined what bitcoin was meant to be in theory. However, the origins of bitcoin date back decades or even millennia in the past. Satoshi created a money and monetary system that contained the best attributes of various successful monetary systems of the past, all combined into a singular system. Then, Satoshi officially launched the fully functional Bitcoin network on January 3rd, 2009 bringing the theory to life.
<img src="https://blossom.primal.net/da95db58e2fc32e0be60e60b695257c384837008d15690f6d8af72cf479fb665.jpg">
## Why is Bitcoin important?
Bitcoin enables a more financially connected world, where transactions can be sent directly between individuals on the Internet. Having decentralized currency is important because it allows anyone to transact with ease, without the need for a third party or bank account/credit. This allows people that are unbanked to become part of the internet economy directly as well.
An important distinction between fiat currency and bitcoin is that even with its volatility even with its lows during a bear market, the price has always plateaued higher than the last fluctuation showing a positive trend in value. Alternatively, keeping your long-term savings in cash or a bank account could very likely have an inverse effect since inflation continues to reduce the buying power of major currencies over time. What you save today may not be enough for tomorrow… Bitcoin has the potential to fix this for us today and future generations.
By understanding why Bitcoin was created, it could change your perspective on how to store money. The protocol empowers individuals to reevaluate their relationship with money and take full control of their bitcoin. This can be done because bitcoin transactions are cryptographic proofs saved on a public blockchain.
## Where can I get bitcoin?
The best place to buy bitcoin is [Bitcoin Well](https://bitcoinwell.com/)
Bitcoin Well is on a mission to enable independence. We do this by making it easy to self custody bitcoin. By custodying their own money, our customers are free to do as they wish without begging for permission. By creating a full ecosystem to buy, sell and use your bitcoin to connect with the modern financial world, you are able to have your bitcoin in self custody and easily spend it too.
Bitcoin Well is also the best place in the world to earn bitcoin. When you earn points in your Bitcoin Well account, you gain the opportunity to play the [Bitcoin (Wishing) Well](https://bitcoinwell.com/blog/how-to-earn-bitcoin-with-bitcoin-well), where you win sats with every play.