Bitcoin was created so you can send money directly to anyone, anywhere - no bank or middleman required.
If you’ve ever wondered why Bitcoin was invented, here’s the simple answer: it solves the problem of trusting third parties like banks to keep your money safe and process your payments. Imagine paying someone in cash; you just hand it to them directly, and the deal is done. But online, you usually need a bank or a payment company to stand in the middle and make sure things go smoothly. The trouble is, banks can freeze accounts, charge fees, and sometimes get things wrong.
Did you know? Bitcoin was created during the 2008 financial crisis, a time when many people lost trust in banks and the financial system. Its inventor, using the name Satoshi Nakamoto, wanted a way to let anyone, anywhere, send money directly to each other just like passing cash at the store, but over the internet.
A big problem with digital money used to be “double spending” the risk that someone could try to spend the same money twice, just by copying and pasting. With regular money, the bank’s record keeps this from happening. But Bitcoin’s design solved this by creating a public record (called the blockchain) that the whole network agrees on. No central bank, no single company—just computers working together to keep honest track.
By removing the need for middlemen, Bitcoin gives you more control over your money. No bank can block your transaction, and no one can take your bitcoin if you protect your secret key. For many, that’s a safer, more open alternative than traditional finance, especially in places where trust in banks is low or accounts can be frozen overnight.
Over the next few lessons, you’ll see how this idea grew from frustration with old financial systems to a new way of moving and saving money. Simple, safe, and in your control that’s the problem Bitcoin set out to solve.