Bitcoin — How It Works and Why the Supply Is Capped
한국어 English
Bitcoin is a decentralised digital currency recorded on a public ledger called a blockchain. No central authority issues it; new coins enter circulation through mining, and the total supply is capped at 21 million by the protocol itself.
Verified facts
- Bitcoin transactions are recorded on a public distributed ledger — the blockchain — rather than by a central issuer or clearing house.
- The protocol caps total supply at 21 million coins.
- New coins are issued to miners as a block reward, and that reward is cut in half at fixed intervals in an event known as the halving.
- Bitcoin was introduced in a 2008 white paper published under the name Satoshi Nakamoto, whose identity has never been confirmed.
Reported, not confirmed
Statements from a single source, or where sources disagree- Because the issuance schedule is fixed in code rather than set by a central bank, Bitcoin is often described as deflationary by design — though whether that translates into price behaviour is contested.
Frequently asked
Who controls Bitcoin?
No single party. Transactions are validated by a distributed network following shared protocol rules, and changes to those rules require broad agreement among participants.
What is the halving?
The block reward paid to miners is cut in half at fixed intervals built into the protocol. It slows the rate at which new coins enter circulation and is the mechanism that enforces the 21 million cap over time.
Who is Satoshi Nakamoto?
The name attached to the 2008 white paper that introduced Bitcoin. The identity behind it has never been confirmed, and this page does not repeat the various attributions that circulate without evidence.
Why 21 million?
It is a parameter written into the protocol rather than a figure derived from anything external. The cap is what makes the issuance schedule predictable.
Sources
Source titles are kept in their original languageThis English edition covers the verified facts and sourced claims. The full document — with sentence-level source references, timeline, FAQ and the complete revision history — is maintained in the Korean edition.