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What is Bitcoin and what is it used for in 2023 ?

What is Bitcoin and what is it used for in 2023 ?

In 2022, it's hard not to have heard of Bitcoin. Despite this, many people do not know more than his name. We explain here what Bitcoin is, what is its operating system but also what it is used for in 2022 !


Mis à jour le 11/26/2023 à 21:25

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How and where to buy Bitcoin?

To buy Bitcoin, you have to go through a dedicated platform, that is to say an exchange or a broker. This platform will act as an intermediary and allow you to buy bitcoins or allow you to access bitcoin trading tools.

In principle, crypto brokers are more suitable if you want to trade cryptocurrencies. Exchanges are more suitable if you want to buy crypto and hold it. However, exchanges like Bitget offer many trading features.

Si vous voulez vous orienter vers un investissement crypto tel que le staking, le earning, le HODL ou simplement acheter Bitcoin pour les conserver dans un wallet, vous pouvez choisir une plateforme d’échange.

If you want to move towards a crypto investment such as staking, earning, HODL or simply buy Bitcoin to keep them in a wallet, you can choose an exchange platform.

Here are the 3 best exchanges to buy Bitcoin in 2022 :

If you prefer to trade cryptos via a broker without necessarily owning bitcoins but by “betting” on its course, prefer a broker.

Here are the 3 best brokers for trading Bitcoin in 2022 :

Choose the platform that best suits you based on your research. Do not hesitate to consult their sites as well as our dedicated articles to find out more.

To buy bitcoins, all you have to do is open an account on the one you have chosen and go through the various identity verification processes.

Once your account has been created and identification has been made, all you have to do is make a deposit in fiat currency (euro, dollar, etc.) and then exchange them for Bitcoin.

When you have bought Bitcoin, you can store it on the platform on which you bought it, or decide to move them to an external wallet such as Metamask, or XDEFI.

Bitcoin review : should you buy it in 2022?

Investing in Bitcoin involves risk and the cryptocurrency market is a very volatile market. Being the mother of cryptos, many experts believe that the value of Bitcoin can only increase over the years, but it is better to be careful.

Some experts believe that Bitcoin will one day reach 1 million dollars. Currently, it is struggling to get back above 25,000 dollars. This year 2022 is marked by strong market disruptions where some are frightened and others see great opportunities.

What is Bitcoin ?

The word bitcoin comes from the combination of two English words : “BIT” and “COIN”.

  • BIT as in Megabit and Gigabit, it is the binary data unit
  • COIN is the English version of “coin”. In other words, Bitcoin is a coin created in a binary data format.

The creation of Bitcoin dates back to 2009. We owe its creation to a certain Satoshi Nakamoto who is still unidentified to this day.

At this time, it is still unclear whether it is a single person or a group.

Bitcoin was created to be a fully decentralized digital currency. All its security and the proper functioning of its transactions are based on a cryptographic principle that was used for the first time in the design of a currency: the blockchain.

Bitcoin, revolutionary at the origin of a new world

Bitcoin was the first cryptocurrency on the market and gave birth to a new area :

  • Many cryptos have emerged using the same blockchain or based on its principle (they are called Altcoins)
  • The birth of decentralized finance : a financial system that does not depend on a central body and that functions like state finance
  • The arrival of web3 with the metaverse, NFT, … which also work on blockchain principles

Today Bitcoin is the cryptocurrency with the highest valuation (nearly 3 billion dollars in capitalization) and is really the flag bearer of the entire crypto movement.

The increasingly simple use of Bitcoin and Altcoins

Virtual currencies such as bitcoin are digital currencies convertible into fiat currencies (also called FIAT currencies) on exchange platforms (Binance, Coinbase, KuCoin, Kraken, etc.) or exchangeable for other cryptocurrencies.

These digital currencies also tend to be more and more usable as a direct means of payment, whether online or physically.

Indeed, more and more institutions are opening their doors to cryptocurrencies. There are also a significant number of companies and individuals who invest heavily in Bitcoin thinking that it is the currency of tomorrow and that its value will explode in the years to come.

How does the Bitcoin blockchain work?

Even though it operates on a decentralized network, Bitcoin is well regulated.

Its operation is based on blockchain technology thanks to which all transactions are carried out securely and transparently.

The blockchain is an assembly of blocks forming a chain. Each block is a list of verified transactions. It is like a digital ledger where all Bitcoin transaction information is stored.

The great strength of the blockchain is that it is public and therefore 100% transparent but above all immutable. Once the blocks are verified and added to the chain, no one can modify their content.

Verification of the Bitcoin blockchain using nodes

As soon as two parties carry out a transaction, the data relating to these transactions is sent to the nodes. The latter ensure the legitimacy of the payer and the availability of the funds to be transferred before validating the transaction.

Each member of the network stores part of this chain on his computer. These computers (or any device that contributes to the operation of the blockchain) are called “nodes” and the members who verify these transactions are “miners“. After validation by the nodes, the parties who initiated the transaction receive the confirmation. The transaction blocks thus processed are then encrypted and then added to the existing blockchain by the node that took care of it.

The principle of Proof of Work (PoW) to verify blocks

To validate a block, the Bitcoin blockchain is based on a principle of Proof of Work. That is to say, when a block is “filled”, miners have to perform a huge amount of calculations to find the “hash” which is the key to confirming that all transactions contained in the block are correct.

Proof of Work is therefore a verification process that requires a lot of material and energy. The amount of calculations is such that very powerful machines (processors, graphics cards, etc.) are needed to be able to find the solution.

When a node has found the hash, it is rewarded with bitcoins. The amount of bitcoins miners receive changes over time. Every 4 years, the amount is reduced by half.

Since 2020, the amount received for the verification of a block is 6.25 BTC (which is still a very nice sum).

The blockchain is therefore not stored on a central server. Each movement on the blockchain must be checked by the nodes and this is what makes it impossible to manipulate.

It is therefore impossible to modify the content of the blocks. In addition, with the Bitcoin blockchain, we can trace each wallet (digital wallet), know its content and all the transactions carried out. The blockchain is public and all information is accessible by everyone. However, she is theoretically anonymous, or rather a pseudonym. We can know addresses and transactions but not the identity behind an address.

What is Bitcoin used for ?

The arrival of Bitcoin in the world of finance has brought an undeniable speculative aspect.

Many investors are turning to bitcoin today because they consider it a safe bet on which to bet and that its value can only increase in the years to come.

Over the past few years, bitcoin has created many of what are now called “crypto-millionaires”, people who felt its value was going to explode and had the lucidity to buy bitcoin when its price was still derisory.

As a reminder, only 2 years ago, at the start of 2020, bitcoin cost around 8,000 euros. It then experienced a very big increase in 2021 to reach 56,000 euros. It does not take a great mathematician to understand that a person who invested at the right time was able to make a fortune easily.

Cryptocurrencies today endorse the reputation of being hens with golden eggs that can sell you rich at any time, but at any time swallow your savings without you having anticipated anything.

But otherwise, apart from its speculative aspect that turns heads and talks critics, does Bitcoin have any real use?

Real utility beyond speculation

In fact, Bitcoin has not only brought volatility to the world of finance. It must be said that Satoshi Nakamoto’s invention is a real revolution and that it has opened up hitherto unsuspected doors.

First, let’s recall the invention behind Bitcoin :

  • A digital currency, in the form of “token” or coins if you prefer, which is hosted on a blockchain. This blockchain is a hyper secure and totally independent way, which is not stored on a central server but on tens of thousands of computers, to prove information by cryptographic mechanisms (hence the name cryptocurrency).

Cryptographic mechanisms are algorithmic mechanisms that can verify information through huge calculation chains.

This Bitcoin blockchain is therefore revolutionary.

It provided a way to make transactions between people without an intermediary (we call it peer-to-peer) on an ecosystem that is completely secure and impossible to hack.

The blockchain is a system that verifies and freezes information in a chain of blocks and which can never be modified. On the other hand, this blockchain is public and available to everyone.

Bitcoin has therefore brought with it a means of almost eliminating the risk of human error in transactions and the risk of bankruptcy/disappearance of managing bodies.

The Bitcoin blockchain is an independent ecosystem that does not lie, does not differentiate between people and cannot react “according to judgment”.

Everyone is on an equal footing.

A new safe, honest and equal verification system

The technology of this blockchain therefore opens the door to digital verification and brings innovations such as NFTs which are elements that are integrated into a blockchain and which are therefore made unique and impossible to copy.

Une avancée qui vient aujourd’hui combler un manque de véracité et d’unicité dans le monde d’internet où tout est copiable et falsifiable

Bitcoin also provides a universal and fast solution for exchanging value. Transactions are fast and can be done from anywhere in the world.

⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.

InvestX is not responsible for the quality of the products or services presented on this page and shall not be held liable, directly or indirectly, for any damage or loss caused as a result of using any goods or services highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.



Web editor for many years and SEO specialist, Thomas became an editor for InvestX when the site was launched. Passionate about the field of crypto and Web3, Thomas has made it his mission to deliver maximum value and introduce readers to the world of blockchains, considered for him as the world of tomorrow.

FAQ Bitcoin

When and by who was Bitcoin invented?

Bitcoin was invented by an anonymous person named Satoshi Nakamoto. It is still unclear whether it was a single person or a group. The first version of Bitcoin was released in 2009.

How does the Bitcoin blockchain work?

The Bitcoin blockchain was the first to emerge and was a real revolution. It works on a verification consensus called Proof of Work. It is secured by a network of anonymous verifiers.

Are there other cryptos besides Bitcoin?

Yes, Bitcoin was the first crypto but today there are thousands of them. Bitcoin still remains the main crypto on the market today with a capitalization of more than 370 billion dollars.

Risk Warning: Trading financial instruments and/or crypto-currencies involves high risks, including the risk of losing all or part of your investment, and may not be suitable for all investors. Crypto-currency prices are extremely volatile and can be affected by external factors such as financial, regulatory or political events. Trading on margin increases financial risk.


Before deciding to trade in financial instruments or crypto-currencies, you should be fully informed of the risks and fees associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and tolerance for risk, and seek professional advice if necessary.

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