During the Bitcoin Conference in May 2025, attendees were inquiring, “What is Bitcoin?” while meeting with clients.
The inaugural Bitcoin Conference took place in New York City years ago, and now multiple events are held each year globally, highlighting cryptocurrency’s rise as a worldwide phenomenon that draws considerable investment and interest.
Bitcoin, a decentralized digital currency, was created in 2008 by an unidentified individual or group known as Satoshi Nakamoto and launched as open-source software in 2009. Unlike conventional fiat currencies issued by governments, Bitcoin operates on a peer-to-peer network, allowing users to send and receive payments without needing a central authority.
Cryptocurrency units are generated through mining, a process that validates transactions and produces new digital currency. This involves powerful hardware and software solving intricate mathematical problems that yield new coins.
Your crypto coins are stored in a digital wallet, which allows users to manage their cryptocurrencies. Though they don’t hold the actual coins, digital wallets safeguard the private keys necessary to access those coins on the blockchain.
Why is Bitcoin and cryptocurrency popular?
• Decentralization: Bitcoin operates independently of any central authority, making it resistant to censorship and control. Its management is distributed across a global network of nodes that validate and record transactions together.
Drawbacks of Bitcoin
• Market Volatility: The cryptocurrency market can be unpredictable and lacks liquidity due to its speculative nature.
• Regulation Risks: Cryptocurrencies are not regulated, raising concerns about fraud and anti-money laundering.
• Security Issues: Ownership relies on a private key for each crypto asset. Losing this key means losing access to that asset permanently.
• Environmental Concerns: Mining operations consume vast amounts of electricity.
Beyond Bitcoin (BTC), there are thousands of alternative cryptocurrencies—referred to as “altcoins”—each offering distinct characteristics and applications. Currently, Bitcoin remains the primary store of value.
Ethereum (ETH) poses the strongest challenge to Bitcoin with its extensive developer community, practical applications (like NFTs and DeFi), and shift to a proof-of-stake mechanism for increased energy efficiency. Consistently ranked as the second cryptocurrency by market cap, Ethereum is also viewed as the backbone of Web3 due to its programmable blockchain.
As interest in cryptocurrency grows, events like the Bitcoin Conference play a crucial role in fostering innovation and promoting adoption. Understanding Bitcoin’s fundamentals and its impact on the modern financial landscape is vital for both newcomers and seasoned investors. Cryptocurrency transcends mere buzzwords; it represents a transformative force in how value is stored, transferred, and conceptualized.
Bronwyn L. Martin is a Financial Advisor and Chartered Financial Consultant with Martin’s Financial Consulting Group, a financial wealth advisory practice of Ameriprise Financial Services LLC in Kennett Square and Havre de Grace, Md. She specializes in fee-based financial planning and asset management strategies and has been in practice for 25 years. To contact her: www.ameripriseadvisors.com/bronwyn.x.martin.
