What is Bitcoin? Bitcoin is a digital currency that lets you send and receive money anywhere in the world without needing a bank or middleman. Created in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin was the first cryptocurrency and remains the largest by market capitalisation.
Unlike Australian dollars or any other government-issued currency, Bitcoin isn’t controlled by a central bank or government. It runs on a decentralised network of computers spread across the globe, and there will only ever be 21 million Bitcoin in existence. That built-in scarcity is one of the reasons people compare it to digital gold.
If you’ve heard people talking about “BTC”, that’s simply Bitcoin’s ticker symbol, the same way the Australian dollar is “AUD”.
Bitcoin at a glance (last updated April 2026)
Price: ~$105,120 AUD | Market cap: ~$2.11 trillion AUD | Circulating supply: ~20 million of 21 million total
How Does Bitcoin Work?
At its core, Bitcoin runs on a technology called blockchain, a shared digital ledger that records every Bitcoin transaction ever made. Think of it as a public spreadsheet that anyone can view, but no single person can alter or delete.
Transactions. When you send Bitcoin to someone, that transaction is broadcast to the Bitcoin network. It doesn’t go through a bank. Instead, it’s verified by thousands of computers (called nodes) running the Bitcoin software.
Mining. Specialised computers called miners compete to validate batches of transactions and add them to the blockchain. In return, miners earn newly created Bitcoin as a reward. This process is what secures the network and introduces new Bitcoin into circulation.
The blockchain. Each batch of verified transactions is called a “block.” Blocks are chained together in chronological order, hence “blockchain.” Once a block is added, it’s practically impossible to change, which is what makes Bitcoin tamper-resistant and trustworthy without needing a central authority.
Your wallet. To hold Bitcoin, you use a digital wallet. Your wallet has a public address (like a bank account number you can share) and a private key (like a password that only you should know). Your private key proves ownership of your Bitcoin. Lose it, and you lose access to your funds.
A Brief History of Bitcoin
Bitcoin’s journey from an obscure whitepaper to a trillion-dollar asset class has been remarkable.
2008: The whitepaper. On 31 October 2008, someone using the name Satoshi Nakamoto published a nine-page paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” It laid out a vision for digital money that didn’t require trust in any institution.
2009: The first block. On 3 January 2009, Satoshi mined the “genesis block”, the very first block on the Bitcoin blockchain. Embedded in it was a headline from The Times: “Chancellor on brink of second bailout for banks.” Bitcoin was born.
2010: The first real-world purchase. A programmer named Laszlo Hanyecz paid 10,000 BTC for two pizzas, worth about $40 at the time. May 22 is still celebrated as “Bitcoin Pizza Day.”
2017: Bitcoin hits mainstream. Bitcoin surged to nearly $20,000 USD for the first time, capturing worldwide media attention and sparking a wave of new investors.
2021: Institutional adoption begins. Bitcoin reached a then-all-time high above $69,000 USD. El Salvador became the first country to adopt Bitcoin as legal tender. Major companies like Tesla and MicroStrategy added BTC to their balance sheets.
2024: Spot ETFs and the fourth halving. In January 2024, the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs for the first time, a watershed moment that opened Bitcoin to traditional investors and pension funds. In April 2024, Bitcoin completed its fourth halving, reducing the mining reward from 6.25 to 3.125 BTC per block. Bitcoin went on to reach new all-time highs above $108,000 USD later that year.
Where things stand today. With over 20 million of the 21 million total Bitcoin already mined and a market cap exceeding US$1.4 trillion, Bitcoin has firmly established itself as the world’s leading digital asset. The next halving is expected to take place in 2028
Why Do People Buy Bitcoin?
People buy Bitcoin for different reasons, and the “right” reason depends on your own financial goals. Here are the most common motivations:
Scarcity and store of value. There will only ever be 21 million Bitcoin. Unlike the Australian dollar or US dollar, no government or central bank can print more of it. This fixed supply is why many investors view Bitcoin as a hedge against inflation, a digital form of gold that can’t be devalued by money printing.
Portfolio diversification. Bitcoin has historically had a low correlation with traditional assets like shares and property. Adding a small allocation of Bitcoin to a diversified portfolio can potentially improve risk-adjusted returns over the long term, though past performance doesn’t guarantee future results.
Decentralisation and financial sovereignty. Bitcoin operates on a peer-to-peer network without any central point of control. For some people, that independence from banks and governments is philosophically important. You truly own your Bitcoin. No institution can freeze it or deny you access.
Growing institutional adoption. Since the approval of spot Bitcoin ETFs in 2024, institutional money has been flowing into Bitcoin at an unprecedented rate. Major asset managers, superannuation funds, and publicly listed companies now hold Bitcoin on their balance sheets. This growing legitimacy has given many retail investors increased confidence in the asset.
Accessibility. You don’t need to buy a whole Bitcoin. You can buy a fraction, even just $10 worth. Bitcoin is divisible to eight decimal places (the smallest unit, 0.00000001 BTC, is called a “satoshi”). This makes it accessible to anyone, regardless of budget.
Is Bitcoin Safe?
This is one of the most common questions beginners ask, and the answer has a few layers.
The Bitcoin network itself is extremely secure. It has been running continuously since 2009 without a single successful hack of the blockchain. The decentralised nature of the network, with thousands of nodes verifying transactions, makes it incredibly resilient.
The risks come from how you store and manage your Bitcoin. Using a reputable Australian exchange like Digital Surge, which holds an AUSTRAC registration and follows Australian regulations, significantly reduces your risk. Choose platforms that offer two-factor authentication (2FA) and keep the majority of customer funds in cold storage (offline wallets).
Volatility is real. Bitcoin’s price can move significantly in short periods. It’s gone through multiple cycles of large gains followed by sharp corrections. If you’re considering Bitcoin, only invest what you can afford to hold through volatility, and consider a long-term perspective rather than trying to time short-term price moves.
Bitcoin and Tax in Australia
In Australia, the ATO treats Bitcoin and other cryptocurrencies as property for tax purposes, not currency. This means:
Capital gains tax (CGT) applies when you sell, trade, or exchange Bitcoin. If you hold for more than 12 months, you may be eligible for a 50% CGT discount.
Buying and holding is not a taxable event. You only trigger a tax obligation when you dispose of your Bitcoin, whether that’s selling it for AUD, swapping it for another crypto, or using it to buy goods and services.
Keep records. Track your purchase price, date, sale price, and any fees. Digital Surge provides transaction history that makes this easier, and you can connect your account to crypto tax tools like CoinTrack to automate the process.
This is general information only, not financial or tax advice. Consult a qualified tax professional for advice specific to your situation.
How to Buy Bitcoin in Australia
Buying Bitcoin in Australia is straightforward with the right platform. Here’s how it works on Digital Surge:
1. Sign up. Create your free account in minutes. You’ll need to verify your identity (a standard KYC requirement under Australian law). It’s quick and secure.
2. Deposit AUD. Transfer Australian dollars to your account via bank transfer, PayID, or other supported payment methods. There are no deposit fees on Digital Surge.
3. Buy Bitcoin. Search for BTC, enter the amount you’d like to buy (in AUD or BTC), and confirm your purchase. You can buy as little as $10 worth.
4. Hold or transfer. Your Bitcoin is safely stored in your Digital Surge account, or you can transfer it to your own personal wallet if you prefer to self-custody.
Creating an account only takes a few minutes, claim your bonus BTC here
Frequently Asked Questions
Is Bitcoin legal in Australia?
Yes. Bitcoin is legal to buy, sell, and hold in Australia. Cryptocurrency exchanges operating in Australia must be registered with AUSTRAC and comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. Digital Surge is fully registered and compliant.
What’s the minimum amount of Bitcoin I can buy?
On Digital Surge, you can buy as little as $10 AUD worth of Bitcoin. You don’t need to buy a whole coin. You can purchase a fraction of a BTC.
How is Bitcoin different from other cryptocurrencies?
Bitcoin was the first cryptocurrency and remains the largest by market cap. While thousands of other cryptocurrencies (called “altcoins”) exist, Bitcoin is widely considered the most decentralised, most secure, and most established. Many investors treat Bitcoin as the “blue chip” of the crypto space.
What is Bitcoin halving?
Roughly every four years, the reward that Bitcoin miners receive for validating transactions is cut in half. This is called a “halving.” It reduces the rate at which new Bitcoin enters circulation, increasing scarcity. The most recent halving was in April 2024, reducing the reward to 3.125 BTC per block. The next halving is expected around 2028.
Can I lose money with Bitcoin?
Yes. Bitcoin’s price is volatile and can go down as well as up. You should only invest what you’re comfortable potentially losing and consider a long-term investment horizon. Never invest money you need for essential expenses.
How do I store Bitcoin safely?
The safest approach for beginners is to use a reputable Australian exchange like Digital Surge that offers strong security features including 2FA and cold storage. As you become more experienced, you may choose to transfer Bitcoin to a personal hardware wallet for self-custody.
DISCLAIMER: The information in this blog is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal or financial product.
