Bitcoin Rate Calculator

What is Bitcoin?

Bitcoin is a digital cryptocurrency that operates on the decentralized peer-to-peer Bitcoin network, allowing users to send and receive Bitcoin without needing an intermediary (or “middleman”) like a bank or payment service provider.

The Bitcoin network is operated by a decentralized network of node operators which work together to verify transactions using cryptography. Each transaction is then recorded on the Bitcoin blockchain — a publicly visible, tamper-proof ledger that displays a full history of all Bitcoin transactions.

You can learn more about Bitcoin by reading our in-depth guide.

When was Bitcoin invented?

Bitcoin’s whitepaper was released on October 31st 2008, outlining the idea behind the decentralized payment technology.

However, Bitcoin officially launched a few months later on January 3rd 2009, when the first “block” of the Bitcoin blockchain was mined — this first block is known as the “Genesis block”.

Since its launch, Bitcoin has been running for a total of {{days_since_bitcoin_launched}} days.

What is Bitcoin mining?

​​Bitcoin mining is a process where miners (advanced computer hardware) solve complex mathematical equations to unlock new Bitcoins.

Miners use computing power to guess the hash for each new Bitcoin block (a hash is a complex string of numbers and letters required to mine each block). Once a miner guesses a hash correctly, it unlocks a new Bitcoin block and the miner receives a reward.

Each new Bitcoin block contains a reward (currently 6.25 BTC) as well as the opportunity to earn transaction fees for every transaction managed through the mined block.

The total number of Bitcoin mined is currently {{number_of_bitcoin_mined}}.

What does Bitcoin hashrate mean?

Bitcoin hashrate (or hashpower) refers to the collective computing power going into solving Bitcoin block equations.

To solve each equation, miners compete to guess a hash — a string of letters and numbers — to access the block and receive a reward. Hashrate measures the number of hash guesses each miner can make per second (you can view Bitcoin’s current hashrate here).

For example, if Bitcoin's collective hashrate is currently 200,000,000,000,000,000,000 per second (or 200 EH/s), this means that miners are making two hundred quintillion hash guesses per second in total.

Also, the higher the hashrate, the better the Bitcoin network’s security. Higher hashpower makes it more difficult for hackers to exploit the Bitcoin network.

What is the Bitcoin halving and when is the next halving?

The Bitcoin “halving” is an event that occurs approximately every 4 years, where the Bitcoin block mining reward halves to reduce Bitcoin’s inflation rate.

For example, the last Bitcoin halving was in May 2020, when the block mining reward halved from 12.5 BTC to 6.25 BTC, significantly reducing the number of new coins brought into circulation.

The next Bitcoin halving will take place in May 2024, which changes the mining reward from 6.25 BTC to 3.125 BTC.

The final Bitcoin halving is estimated to happen in 2140. The last halving will reduce the mining reward to 0 BTC as all 21 million BTC will have been mined.

Is Bitcoin illegal?

Bitcoin is only illegal in a few locations, including China, Iraq, and Qatar — virtually all activities relating to cryptocurrencies are banned, including transacting in Bitcoin.

However, Bitcoin is legal in most other countries and jurisdictions, including the US, Canada, the UK, and the EU — individuals can legally buy, sell, hold, and spend Bitcoin. Nations like El Salvador and The Central African Republic have even classified Bitcoin as legal tender.

Other nations enforce some restrictions on the use of cryptocurrency, despite not classifying all cryptocurrency-related activities as illegal. For example, Saudi Arabia restricts financial institutions from dealing in cryptocurrencies, but there are no restrictions on individuals buying or spending Bitcoin.

Before buying, selling, or using Bitcoin, it is important to research your country’s or state’s laws on using Bitcoin or cryptocurrencies to ensure you’re keeping within legal guidelines.

How do you buy Bitcoin?

You can buy Bitcoin using a trusted cryptocurrency exchange, like Coinbase, Binance, or FTX, or established payment apps like PayPal and Cash App.

Before you buy Bitcoin, you can check the current Bitcoin price in your local currency to ensure you receive the correct rate from wherever you choose to buy Bitcoin.

Is Bitcoin safe to use?

It is safe to use Bitcoin.

However, you need to ensure you don’t fall victim to a scam, hack, or even self-inflicted errors such as sending Bitcoin to the wrong address or forgetting your Bitcoin wallet’s private key.

Bitcoin-related cybercrime is a huge problem, especially with online attackers deceiving users into transferring BTC or giving away their Bitcoin wallet private keys or backup seed phrases — hence why it’s so important to learn how to manage your Bitcoin wallet’s private key and seed phrase.

What is a Bitcoin wallet private key?

Essentially, a Bitcoin wallet private key is like a password required to access and manage the Bitcoin stored in your wallet.

To send Bitcoin from your wallet to another, you need your wallet’s private key to confirm the transaction.

A Bitcoin wallet has both a public and private key. A public key is like a social media username, which you can share with other users and is publicly visible. A private key is like the social media account password — it’s needed to access and manage the account.

What’s the best way to store Bitcoin?

The best way to store Bitcoin is by using a hardware wallet, like a Ledger or Trezor device.

Hardware wallets, like a Ledger or Trezor device, store your private key offline (on the device), meaning users need to connect their hardware wallet device to their computer or smartphone each time they want to send Bitcoin.

Storing your private key offline mitigates the risk of hackers or malware accessing your private key and stealing your Bitcoin holdings.

Users can hold Bitcoin using an online wallet, also known as a “hot wallet”. However, online wallets are much easier for hackers to exploit when compared to hardware wallets, as online wallets store private keys online.

Also, Bitcoin wallets generate a 12 or 24-word backup seed phrase, which is needed to access your wallet if you lose your private key. It’s essential to back up your wallet seed phrase — you can write it on a piece of paper or card and store it in a safe place or use a purpose-built seed phrase storage device.

Some users may prefer to store their Bitcoin holdings in their cryptocurrency exchange account for convenience, which can be a good option for those who don’t want to hold their funds in a separate Bitcoin wallet.

However, holding Bitcoin in a crypto exchange account means you won’t have full control of your Bitcoin — if the exchange is hacked or has other issues, you may not get your Bitcoin back. It’s incredibly important to choose a reputable crypto exchange that has a proven track record of securing user funds and always allowing users to withdraw funds.

What are Satoshis?

A Satoshi (sometimes referred to as “sats”) is the smallest denomination of Bitcoin — like cents are to dollars. One Satoshi is a 100 millionth of a Bitcoin (1 Satoshi = 0.00000001 Bitcoin).

For example, if you have 0.0357 Bitcoin, that would be the equivalent of 3,570,000 Satoshis.

It’s becoming more popular for Bitcoin users to account for their holdings in Satoshis, hence why our Bitcoin rate converter has the option to convert from Satoshis to other currencies.