Bitcoin can look simple from the outside: paste an address, choose an amount, send.
Under that simple interface are several concepts that are useful for developers and technical beginners to understand. This post is not trading advice and does not discuss price. It is a practical mental model for what is happening when someone sends Bitcoin.
1. A wallet does not "hold coins" the way an app balance does
Many beginners imagine a wallet as a container full of coins. That is close enough for casual conversation, but it can be misleading.
A Bitcoin wallet manages keys and helps create transactions. The Bitcoin network tracks spendable outputs on the ledger. When you send BTC, the wallet constructs a transaction that spends previous outputs and creates new outputs.
