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Introduction to Bitcoin (BTC)
9 min
Bitcoin (BTC) is a decentralised digital currency invented in 2009 by the pseudonymous Satoshi Nakamoto. Operating on a peer-to-peer network and a public blockchain ledger, it was originally created to allow online payments to bypass traditional financial institutions.
With a programmed supply limit of 21 million coins, this inherent scarcity has seen some investors consider it as a digital store of value. As the largest cryptocurrency – frequently accounting for over 50% of the overall crypto market capitalisation – BTC serves as a foundational asset.
In Australia, individuals can purchase Bitcoin using AUD through PayID transfers on AUSTRAC-registered platforms like Swyftx.
Why investors may choose Bitcoin
Bitcoin offers utility as a scarce, decentralised asset. It allows individuals to diversify their wealth strategy without requiring a deep technical knowledge of blockchain mechanics. For Australians looking to navigate market volatility, automated features like Auto Invest facilitate dollar-cost averaging, enabling consistent, long-term accumulation.
Bitcoin vs Ethereum
Differentiating between the two largest digital assets requires looking at their underlying utility. Bitcoin is primarily designed to act as a secure, decentralised store of value, though recent upgrades have introduced smart contracts allowing users to release their own tokens and create NFT collections within the Bitcoin ecosystem.
Conversely, comparing it to Ethereum highlights ETH’s foundational role as a programmable network built to execute complex smart contracts and support decentralised applications. Generally, BTC is held as a store of value, while ETH provides direct exposure to Web3 infrastructure.
| Feature | Bitcoin (BTC) | Ethereum (ETH) |
| Primary Purpose | Store of value | Smart contracts & applications |
| Supply Model | Fixed (21 million) | Variable (with burn mechanisms) |
| Use Case | Foundational industry asset, hedge against banks and institutions | DeFi, NFTs, Web3 |
What drives Bitcoin's price?
Bitcoin's market valuation can be driven by the intersection of global demand, fixed supply mechanics, and broader macroeconomic factors.
Network adoption
As participation increases across retail and institutional sectors, available liquidity on the open market decreases. This demand is often influenced by major market milestones, such as the 2024 approval of spot Bitcoin ETFs on US stock exchanges, and sovereign-level adoption, highlighted by the March 2025 Executive Order confirming the introduction of a Strategic Bitcoin Reserve in the United States.
Supply mechanics
Bitcoin has a firm 21 million coin limit, with over 20 million BTC already in circulation. New coins are created through Bitcoin mining, where specialised computers secure the network and are rewarded with newly-minted BTC. Additionally, this block reward diminishes every four years to help keep BTC deflationary during an event called the Bitcoin halving. The 2024 halving reduced the reward to 3.125 BTC, introducing periodic supply constraints.
Market sentiment
As a globally traded asset, BTC remains highly sensitive to macroeconomic indicators, including interest rate adjustments and inflation data.
How to store Bitcoin in Australia
After purchasing BTC, investors must decide on a storage method. Assets can remain on a regulated custodial exchange or be withdrawn to a private hardware wallet for direct ownership. For more information on self-custody options, refer to our crypto wallet guide.