What is Bitcoin?
Bitcoin is a digital currency launched in 2009 that works without a bank, central bank or any other single operator.
It is the first and still the largest blockchain-based cryptocurrency, and its total supply is fixed at 21 million coins.
Unlike the euro or the dollar, Bitcoin is not issued by any state, and its supply can't be increased afterwards. This scarcity is one of the main reasons Bitcoin is often called "digital gold": an asset whose value doesn't depend on political decisions.
Bitcoin and "cryptocurrencies" are not the same thing. Bitcoin is one of thousands of cryptocurrencies, but the only one with no single founder or company behind it; a developer community maintains the network on open-source principles.
Bitcoin was created by a person or group using the pseudonym Satoshi Nakamoto in a technical paper published in 2008. No single party owns or controls the network: thousands of computers around the world (miners and nodes) maintain it together according to open-source rules.
Other cryptocurrencies, such as Ethereum, often have a clear founding team or foundation behind them, and many are designed for purposes other than storing value, for example as an application platform.
A short history of Bitcoin
Bitcoin's story began in October 2008, when a person or group using the pseudonym Satoshi Nakamoto published a nine-page technical paper (the "whitepaper") describing a peer-to-peer digital cash system without banks as intermediaries.
In January 2009 the network started when the first block, the so-called genesis block, was mined. In its early years Bitcoin had hardly any monetary value. May 2010 is often remembered as "Bitcoin Pizza Day", when a programmer paid 10,000 bitcoin for two pizzas.
2017 brought the first big public attention as the price rose steeply and then crashed. In November 2021 Bitcoin reached its then all-time high of close to $69,000. In January 2024 the US Securities and Exchange Commission approved the first spot Bitcoin ETFs, which many see as a turning point in Bitcoin's institutional acceptance. See Bitcoin price history.
How does Bitcoin work in practice?
At the core of Bitcoin is the blockchain: a public, decentralised ledger in which every Bitcoin transfer ever made is recorded. Instead of one bank keeping track of balances, thousands of computers around the world maintain the same copy of the ledger and check each other's work.
New transactions are collected into blocks, which miners confirm by solving a computationally heavy mathematical task; this is called proof of work. The first miner to solve it adds the block to the chain and receives newly created bitcoin plus transaction fees as a reward. This makes changing the transaction history afterwards practically impossible.
Ownership is proven with cryptographic key pairs: the public key works as an address for receiving funds, and the private key is the only way to sign and send them. Holding the private key is effectively the same as owning the funds, which is why storing it safely is so important.
Bitcoin's scarcity and the halving
A fixed maximum supply of 21 million coins is coded into the Bitcoin protocol, and the cap can't be changed without the whole network's consent. New bitcoin is created only as mining rewards, and the reward halves about every four years in an event called the halving, most recently in 2024.
Bitcoin Finland: why Bitcoin interests people in Finland
Interest in Bitcoin in Finland has grown steadily in recent years. In Finland, crypto-asset services may only be offered with a licence under the EU's MiCA regulation, which sets capital, security and customer protection requirements for service providers.
Another reason is practicality: on Finnish crypto exchanges you can identify yourself directly with Finnish online banking credentials, and money moves through familiar SEPA bank transfers. If you don't have Finnish bank ID yet, MiCA-licensed international platforms verify you with a passport or ID card instead.
Bitcoin Finland: regulation in Finland and the EU
Providers of crypto-asset services in Finland, such as exchanges and wallet services, must hold a licence under the EU's MiCA regulation. This obliges the provider to comply with anti-money laundering law, know its customers and report suspicious activity to the authorities, just like banks and other financial operators.
MiCA lets crypto service providers operate across the whole EU with one licence, which has increased both supervision and the range of international services available in Finland. Regulation doesn't remove investment risk, but it raises the bar for dishonest operators and gives consumers more ways to check a provider's background.
How to buy Bitcoin in Finland
Buying Bitcoin in Finland usually follows the same basic pattern whichever provider you choose:
- Choose a crypto exchange with a MiCA licence. You can check the licence in the FIN-FSA's list of supervised entities or ESMA's MiCA register.
- Identify yourself. With Finnish bank ID or a mobile certificate on Finnish exchanges, or with a passport or ID card on international ones. Sign-up takes only a few minutes with most services.
- Make a deposit by bank transfer. Deposits typically appear in your account the same or the next banking day.
- Buy Bitcoin for the amount you want. Bitcoin divides into small fractions, so you don't need to buy a whole coin.
- Move the Bitcoin to your own wallet. If you plan to hold it longer, your own wallet is safer than keeping funds on the exchange.
Paying by card is also possible; see buying Bitcoin with a card. If you're unsure about timing, read should I buy Bitcoin now?
Bitcoin as an investment compared with other assets
Bitcoin is often compared with gold because of its scarcity, but as an asset class it differs from both gold and traditional investments in many ways. Below is a general comparison to illustrate the differences, not a recommendation for any asset class: Bitcoin is a very high-risk investment.
| Feature | Bitcoin | Gold | Shares |
|---|---|---|---|
| Volatility | Very high | Low to moderate | Moderate |
| Availability | 24/7, global | Limited trading hours | During exchange opening hours |
| Supply | Fixed cap (21 M) | Grows slowly through mining | A company can issue more |
| History as an investment | Since 2009 | Thousands of years | Hundreds of years |
| Regulation in Finland | FIN-FSA / MiCA | No special regulation | Securities Markets Act |
Bitcoin tax in Finland in brief
In Finland a gain from selling Bitcoin is taxable capital income, reported to the tax authority as a capital gain. Swapping one cryptocurrency for another also counts as a disposal, not just converting crypto into euros.
Instead of the actual acquisition cost you can always use the deemed acquisition cost (20% of the sale price, or 40% for assets held at least 10 years) if it is more favourable or the purchase price is unknown (Finnish Tax Administration). Losses can be deducted under certain conditions; see deducting Bitcoin losses.
Bitcoin and the environment
Bitcoin mining consumes a significant amount of electricity, because proof of work is based on competition in computing power. This is a real and measurable fact, not an exaggeration.
At the same time, a growing share of mining uses renewable energy or energy that would otherwise go to waste, and miners seek out the cheapest electricity for economic reasons. The topic remains disputed, so be wary of both excessive condemnation and excessive dismissal.
A short Bitcoin glossary
| Blockchain | A decentralised, public ledger of all Bitcoin transfers. |
| Mining | The process of adding new blocks to the chain and creating new bitcoin. |
| Private key | A secret code that proves ownership and lets you send funds. |
| Recovery phrase (seed phrase) | A sequence of 12–24 words from which a wallet's keys can be restored. |
| Satoshi | Bitcoin's smallest unit, 0.00000001 BTC. |
| Halving | The halving of the mining reward about every four years. |
| Cold wallet | An offline device for storing private keys. |
| Volatility | How strongly the price varies over a given period. |
Bitcoin and other cryptocurrencies are a riskier asset class than ordinary investments. The price can swing sharply even in a short time, and you can lose all or part of the capital you invest.
Historically, Bitcoin's price has at times moved tens of percent in either direction within a few weeks. Volatility is significantly higher than in, for example, the stock or bond markets.
Never invest more in Bitcoin than you are prepared to lose entirely. Bitcoinsuomi.com does not provide investment advice; this content is general information, not a personal recommendation.
Bitcoin Finland: frequently asked questions
Is it legal to buy Bitcoin in Finland?
Yes. Buying, owning and selling Bitcoin is completely legal in Finland. Providers of crypto services, such as exchanges, must however hold a licence under the EU's MiCA regulation.
How much money do I need to buy Bitcoin in Finland?
Most crypto exchanges in Finland allow purchases from a few euros upwards, because Bitcoin divides into small fractions (satoshis). You don't need to buy a whole coin.
Can I buy Bitcoin in Finland without Finnish bank ID?
Yes. International exchanges with a MiCA licence verify your identity with a passport or ID card and a selfie, so you can buy Bitcoin even if you don't have Finnish online banking credentials yet.
Do I need my own crypto wallet for Bitcoin?
Small amounts can be kept on an exchange account for a short time, but for longer-term storage your own wallet, especially a cold hardware wallet, is recommended.
Do I have to pay tax on Bitcoin gains in Finland?
Yes. A gain on a sale is capital income and must be reported to the Finnish Tax Administration.
What is a satoshi?
A satoshi is Bitcoin's smallest unit, 0.00000001 BTC. The name comes from Bitcoin's creator's pseudonym, Satoshi Nakamoto. Thanks to it, Bitcoin can be bought and used in small fractions.
Can Bitcoin run out?
Bitcoin's maximum supply is fixed at 21 million coins. Once all have been mined (estimated around the year 2140), miners will be rewarded only with transaction fees.
Risk warning: investing in cryptocurrencies such as Bitcoin involves high risk. The value can rise and fall sharply, and there is no guarantee that the capital invested will be preserved. This content is general information, not investment advice.