Money & Economy
Why Was Bitcoin Created?
Bitcoin was created in 2009 by Satoshi Nakamoto as a response to the 2008 financial crisis. The goal: create money that no government or bank can control.
Bitcoin is digital money that runs on a network of computers worldwide. No single entity controls it. The rules are written in code, not controlled by politicians.
How Government Money Loses Value
Governments can print more money whenever they want. This is called inflation — when there's more money but the same amount of goods, prices go up and your savings lose value.
Simple Example
If you have $100 today and inflation is 5% per year, in 10 years that $100 will only buy what $60 buys today. Your money lost 40% of its value.
Bitcoin is Different
Bitcoin has a fixed supply of 21 million coins. No one can print more. This makes it deflationary — it tends to hold or increase in value over time, unlike government money.
Why This Matters
Understanding money helps you understand why Bitcoin exists. It's not just "internet money" — it's a new way to store value that can't be inflated away by any government.