The asset bitcoin is native to and dependent on the accompanying monetary system of Bitcoin the protocol and Bitcoin the network. All participants in the Bitcoin network share a common rule set, the Bitcoin protocol, enabling each participant to keep track and effectively ensure the correct transferring of bitcoin the asset. Within this system, bitcoin the asset functions as an internal unit of account that can be transferred inside of the network, but the units have no existence or use outside of the network on which it relies.
Each unit is fully digital and is only held and transferred through uniquely created digital wallets. The process of creating a wallet, storing and moving bitcoin doesn’t require any involvement from any other individual, group, or entity other than the individual user. As a fully internal unit, bitcoin can be transacted without counterparty risk, meaning it doesn’t depend on anything external to itself (credit or otherwise). It is also a digital bearer asset in that whoever controls the respective private keys control the bitcoin.