What is Bitcoin?
Bitcoin is the first decentralised digital currency. They are digital coins that you can use on the internet to transact with or to use as a store of value. As Bitcoin is a peer-to-peer network, transactions take place between users directly without a third party that verifies the transaction.
The invention that makes this possible is the so-called Blockchain. The thousands of blockchain nodes verify the bitcoin transactions that happen between two parties, and for doing so, the nodes (also called miners) receive a reward in the form of newly created bitcoin and a transaction fee.
The inventor of the Bitcoin protocol goes by the nickname Satoshi Nakamoto and until today it’s still unknown who exactly this person (or group of people) is.
Purpose of the tokenThe bitcoin (BTC) token is the asset of the bitcoin network. The token is used to transact with other parties on the bitcoin blockchain, but is mostly used as an investment vehicle in the form of "digital gold".
There is no specific underlying value of the bitcoin token, which means the valuation of Bitcoin is based on a network effect of people using the network to store & transact value using Bitcoin.