Bitcoin (BTC)
Bitcoin is the original cryptocurrency, designed as peer-to-peer digital cash but now primarily valued as a store of value or "digital gold."
Key Characteristics
- Limited Supply: Maximum 21 million coins
- Halving Events: Every 210,000 blocks (~4 years), mining rewards cut in half
- Proof-of-Work: Consensus mechanism requiring computational power
- Censorship Resistant: No central authority can freeze or seize funds
- First-Mover Advantage: Largest market cap and recognition
Despite limited transaction speed (~7 transactions per second), Bitcoin remains the cornerstone of the cryptocurrency ecosystem.
Core Technology
- Blockchain: Bitcoin operates on a distributed ledger where all transactions are recorded in sequential "blocks"
- Mining: New bitcoins enter circulation through mining, where computers solve complex mathematical problems
- Cryptography: Advanced cryptography protects transactions and controls the creation of new coins
Key Features
- Decentralized: No central authority or bank controls Bitcoin
- Limited Supply: Only 21 million bitcoins will ever exist
- Pseudonymous: Users can have multiple Bitcoin addresses without revealing their identity
- Divisible: Each bitcoin can be divided into 100 million "satoshis" (0.00000001 BTC)
Market Position
Bitcoin remains the largest cryptocurrency by market capitalization and has gained significant institutional adoption as a store-of-value asset.
Major Developments
- Lightning Network: Second-layer solution to improve transaction speed and reduce fees
- Taproot Upgrade (2021): Enhanced privacy, efficiency, and smart contract capability
- ETF Approval (2024): Spot Bitcoin ETFs allowing traditional investment exposure
Challenges
- Volatility: Dramatic price fluctuations remain common
- Energy Consumption: The proof-of-work mechanism requires substantial electricity
- Scalability: Base layer has limited transaction capacity
- Regulatory Uncertainty: Evolving legal frameworks worldwide
Advanced
Example Addresses
- Legacy (P2PKH):
1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa(First Bitcoin address, belonging to Satoshi) - Segwit (P2SH):
3FZbgi29cpjq2GjdwV8eyHuJJnkLtktZc5 - Native Segwit (Bech32):
bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq - Taproot:
bc1p5d7rjq7g6rdk2yhzks9smlaqtedr4dekq08ge8ztwac72sfr9rusxg3297
Block Explorers
Key People
- Satoshi Nakamoto: Pseudonymous creator who published the Bitcoin whitepaper in 2008 and disappeared in 2011
- Hal Finney: First person to receive a Bitcoin transaction and early contributor (deceased)
- Gavin Andresen: First core developer entrusted by Satoshi to lead the project
- Adam Back: Created Hashcash, the proof-of-work system Bitcoin is based on
- Nick Szabo: Created Bit Gold, a Bitcoin precursor, and developed the concept of smart contracts