What problem does Bitcoin solve? Bitcoin is a type of money created so that its supply cannot be increased without limit. With traditional money, governments can keep issuing more and more, and that causes money to lose value over time. The result is that, with the same amount of money, you can buy fewer things than before. That is the problem many governments hide or downplay: inflation does not just raise prices, it also weakens savings. Bitcoin has a limited supply, and that is why many people see it as a way to protect their savings.