The core idea is to have a currency backed by the power of cryptography (i.e., math), rather than governments, gold, or another physical entity. Neal Stephenson’s book Cryptonomicon contained an idea like this back in 1999, and in 2008, Satoshi Nakamoto introduced bitcoin to a cryptography mailing list, with the software going live by January 2009.
Bitcoin is sort of like a distributed computing competition, called “mining,” where, based on your computational contributions, you have a chance of “winning” a block of bitcoins. This happens every 10 minutes, on average, and the more you participate, the higher the chance of mining a block. The block reward started at 50 bitcoins (BTC), and halves every 210,000 blocks (about four years)—it’s currently 12.5 BTC. Mathematically, that means there will never be more…
