How bitcoin works, in plain language

Each explainer answers one question in its first two sentences, then shows its work. Sats means satoshis, the smallest unit of bitcoin; 100,000,000 sats make one bitcoin.

Opening October 13, 2026

The first eight explainers cover the basics: what a sat is, how a transaction gets confirmed, what miners do, how a wallet works, the halving schedule, the 21 million cap, how fees are set, and how bitcoin is taxed in the United States. Until launch, this page is a placeholder.

The sections

• The basics. Sats, transactions, wallets, and keys.
• The network. Miners, nodes, the mempool, hashrate, and difficulty.
• Money and markets. Halvings, the 21 million cap, inflation, and what the price measures.
• Rules and taxes. How bitcoin is taxed and reported in the United States, in general terms. A tax professional should be consulted for your own situation.
• Safety. Scams, seed phrases, and what "not your keys" means.

The three sites

• Fast Stats for SatsThe value of sats and bitcoin, in charts.
• Fast Facts for SatsHow bitcoin works, in plain language. You are here.
• Fast Acts for SatsHow to buy, earn, store, secure, and use bitcoin.