Bitcoin

 

In this article we will talk about the basics of Bitcoin (BTC).

 
 

What is BTC?

• Bitcoin is a digital asset that people can exchange peer-to-peer without needing a trusted third-party, or “middle man.”
• Bitcoin has a hard cap on its maximum supply at 21 million, making it provably scarce.
• The Bitcoin network runs on computers distributed around the world. The decentralized nature of the network makes it extremely secure and resistant to attacks.

 
 

Use cases of BTC

Bitcoin can be used as:

• Digital money. Its original authors named it a “peer-to-peer electronic cash system.”
• A store of value. Many consider bitcoin to be a better version of gold given that it’s portable, easily storable, and impossible to counterfeit (fake).
• A way to “bank the unbanked.” Bitcoin lets anyone with access to the internet create a wallet and use the network, including the estimated 1.4 billion globally who lack access to the traditional financial system.

 
 

Why is BTC getting attention?

Bitcoin is getting outsized attention due to:

• Its size. Bitcoin has the largest market capitalization of any crypto.
• Inflation. With many countries facing rising inflation, many view bitcoin as a hedge, or “safe haven” against the falling value of national currencies.
• Volatility. Bitcoin is synonymous with volatility, reaching an all-time high around $69K in November of 2021 and trending around $40K since the beginning of 2022, a 35% swing.

 
 

Big moments for BTC

• Whitepaper. Satoshi Nakamoto, the pseudonym of still unknown Bitcoin inventor, published the Bitcoin whitepaper in October 2008.
• Pizza purchase. On May 22nd, 2010, the first retail transaction of two pizzas for 10,000 BTC (over $400 million today) occurred.
• Legal tender. On September 7, 2021, El Salvador became the first country to accept bitcoin as legal tender.

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