{"id":227,"date":"2025-04-27T14:34:19","date_gmt":"2025-04-27T14:34:19","guid":{"rendered":"https:\/\/minitoolai.com\/blog\/?p=227"},"modified":"2025-04-27T14:34:22","modified_gmt":"2025-04-27T14:34:22","slug":"bitcoin-btc-the-complete-guide-to-understanding-bitcoin","status":"publish","type":"post","link":"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/","title":{"rendered":"Bitcoin (BTC): The Complete Guide to Understanding Bitcoin"},"content":{"rendered":"\n<p>Bitcoin, launched in 2009, is the pioneering cryptocurrency that laid the foundation for today&#8217;s thriving crypto market. With its market capitalization exceeding $1.8 trillion, Bitcoin has demonstrated remarkable growth since its inception. Let&#8217;s explore what makes Bitcoin special and understand its key aspects.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"678\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-1024x678.png\" alt=\"what is Bitcoin (BTC)\" class=\"wp-image-228\" style=\"width:720px;height:auto\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-1024x678.png 1024w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-300x199.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-768x509.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-1536x1017.png 1536w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-2048x1356.png 2048w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-634x420.png 634w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-150x99.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-696x461.png 696w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-1068x707.png 1068w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-23-1920x1271.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">what is Bitcoin (BTC)<\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#What_is_Bitcoin_BTC\" >What is Bitcoin (BTC)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Who_Created_Bitcoin\" >Who Created Bitcoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Who_Controls_Bitcoin\" >Who Controls Bitcoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Who_Was_the_First_to_Receive_Bitcoin_from_Satoshi\" >Who Was the First to Receive Bitcoin from Satoshi?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#How_Does_Bitcoin_Work\" >How Does Bitcoin Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Bitcoins_Development_Timeline\" >Bitcoin&#8217;s Development Timeline<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#1976\" >1976<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#1989\" >1989<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2008\" >2008<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2009\" >2009<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2010\" >2010<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2011\" >2011<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2012\" >2012<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2013\" >2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2014\" >2014<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2015\" >2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2016\" >2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2017\" >2017<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2021\" >2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2023\" >2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2024\" >2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#2025\" >2025<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Bitcoins_Key_Characteristics\" >Bitcoin&#8217;s Key Characteristics<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Decentralization\" >Decentralization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Anonymity\" >Anonymity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Transparency\" >Transparency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Non-Repudiation\" >Non-Repudiation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Bitcoin_Measurement_Units\" >Bitcoin Measurement Units<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#How_to_Mine_Bitcoin\" >How to Mine Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#What_Can_You_Buy_With_Bitcoin\" >What Can You Buy With Bitcoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#How_to_Buy_Bitcoin\" >How to Buy Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Benefits_of_Bitcoin\" >Benefits of Bitcoin<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Freedom\" >Freedom<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#High_Convenience\" >High Convenience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Ability_to_Choose_Transaction_Fees\" >Ability to Choose Transaction Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Not_in_PCI\" >Not in PCI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Security_and_Control\" >Security and Control<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Bitcoin_Cannot_Be_Counterfeited\" >Bitcoin Cannot Be Counterfeited<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Risks_of_Investing_in_Bitcoin\" >Risks of Investing in Bitcoin<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Legal_Risk\" >Legal Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Security_Risk\" >Security Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Market_Risk\" >Market Risk<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Is_Bitcoin_an_Economic_Bubble\" >Is Bitcoin an Economic Bubble?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Differences_Between_Bitcoin_and_Traditional_Currencies\" >Differences Between Bitcoin and Traditional Currencies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Decentralization-2\" >Decentralization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Cannot_Be_Counterfeited\" >Cannot Be Counterfeited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Durability\" >Durability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#%E2%80%9CWhen_the_pen_falls_the_chicken_dies%E2%80%9D\" >&#8220;When the pen falls, the chicken dies&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Convertibility\" >Convertibility<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#New_Token_Standards_Implemented_on_Bitcoin\" >New Token Standards Implemented on Bitcoin<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#BRC-20\" >BRC-20<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#ORC-20\" >ORC-20<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#SRC-20\" >SRC-20<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Runes\" >Runes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Smart_Contracts_on_Bitcoin\" >Smart Contracts on Bitcoin<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#RGB_Protocol\" >RGB Protocol<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Spiderchain\" >Spiderchain<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-58\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#How_is_Bitcoin_Taxed\" >How is Bitcoin Taxed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-59\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#What_is_Bitcoin_Halving\" >What is Bitcoin Halving?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-60\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#BTC_Dominance\" >BTC Dominance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-61\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Bitcoin_Storage_Wallets\" >Bitcoin Storage Wallets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-62\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Should_You_Buy_Bitcoin\" >Should You Buy Bitcoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-63\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#What_are_Bitcoin_Whales\" >What are Bitcoin Whales?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-64\" href=\"https:\/\/minitoolai.com\/blog\/bitcoin-btc-the-complete-guide-to-understanding-bitcoin\/#Summary\" >Summary<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Bitcoin_BTC\"><\/span>What is Bitcoin (BTC)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Created in 2009, Bitcoin is a cryptocurrency designed to function as a payment method independent of traditional institutions. This allows financial transactions to occur directly without third-party intervention.<\/p>\n\n\n\n<p>Bitcoin has a maximum supply of 21 million coins, projected to be fully mined by 2140.<\/p>\n\n\n\n<p>On March 2, 2025, President Trump confirmed the establishment of a national reserve fund including digital assets such as BTC, ETH, XRP, SOL, and ADA. This represents a significant milestone in Bitcoin&#8217;s development and evolution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Created_Bitcoin\"><\/span>Who Created Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin&#8217;s creator is the mysterious Satoshi Nakamoto. In 2008, he published the Bitcoin whitepaper, a detailed document outlining this cryptocurrency. One year later, the first Bitcoin software version was released to the public.<\/p>\n\n\n\n<p>Although claiming to be a 37-year-old Japanese man, Satoshi&#8217;s fluent English and the complex technical features in the Bitcoin software raised doubts about his true identity. Around mid-2010, Satoshi unexpectedly left the project, transferring primary development authority to Gavin Andresen.<\/p>\n\n\n\n<p>In October 2024, the HBO documentary &#8220;Money Electric: The Bitcoin Mystery&#8221; claimed Peter Todd was Satoshi Nakamoto. However, the film quickly received strong backlash from the community, and Peter Todd himself denied being Bitcoin&#8217;s founder. The true identity of Satoshi Nakamoto remains unsolved.<\/p>\n\n\n\n<p>Satoshi is estimated to own nearly 1 million Bitcoin, equivalent to over $90 billion at the market price as of March 6, 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Controls_Bitcoin\"><\/span>Who Controls Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After Satoshi Nakamoto&#8217;s departure, Gavin Andresen played a crucial role in maintaining Bitcoin&#8217;s development. He wanted Bitcoin to operate independently even without his involvement.<\/p>\n\n\n\n<p>What makes Bitcoin different is its decentralized nature. No entity\u2014whether government, bank, or corporation\u2014can control Bitcoin. All transactions are recorded publicly on the <a href=\"https:\/\/minitoolai.com\/blog\/what-is-blockchain-and-why-is-it-considered-a-breakthrough-technology\/\" data-type=\"post\" data-id=\"206\">blockchain<\/a>, ensuring transparency and security. In essence, Bitcoin gives users complete control over their assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Was_the_First_to_Receive_Bitcoin_from_Satoshi\"><\/span>Who Was the First to Receive Bitcoin from Satoshi?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hal Finney, one of the earliest participants in the Bitcoin network who helped Satoshi by reporting bugs, made history when he received 10 BTC from Satoshi Nakamoto.<\/p>\n\n\n\n<p>This transaction not only marked Bitcoin&#8217;s first on-chain transaction but also made Hal Finney the first recipient of what would later become known as an &#8220;airdrop&#8221; in the crypto market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_Bitcoin_Work\"><\/span>How Does Bitcoin Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When new transactions appear on the blockchain, they are collected in a temporary area called the &#8216;mempool&#8217;. Miners play an essential role in verifying the validity of these transactions and then organizing them into blocks.<\/p>\n\n\n\n<p>Each block resembles a page in the blockchain ledger, recording multiple transactions along with additional information. Specifically, mining nodes gather unconfirmed transactions from the mempool and create a potential block.<\/p>\n\n\n\n<p>Finally, miners must transform this potential block into a valid block by solving a complex mathematical problem requiring significant computational power. In return, they receive a block reward, including newly created Bitcoin and transaction fees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoins_Development_Timeline\"><\/span>Bitcoin&#8217;s Development Timeline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1976\"><\/span>1976<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Diffi-Hellman Day &#8211; November 1, 1976<\/strong> Whitfield Diffie and Martin E. Hellman created a groundbreaking encryption protocol in their paper &#8220;New Directions in Cryptography.&#8221; This work established the foundation for modern cryptography, emphasizing secure digital communication and paving the way for public and private key systems essential in today&#8217;s cryptocurrency transactions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1989\"><\/span>1989<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>DigiCash Founded<\/strong> Cryptographer David Chaum established DigiCash, an early attempt to create a fully anonymous and secure digital payment system based on Blind Signature Technology. This technology enabled secure and private transactions without requiring a trusted third party. DigiCash served as a precursor to modern cryptocurrencies like Bitcoin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2008\"><\/span>2008<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Bitcoin.org Domain Registration &#8211; August 18, 2008<\/strong> The domain &#8220;Bitcoin.org&#8221; was registered through privacy protection services, keeping the registrant&#8217;s identity unknown. Today, the website is managed by an open-source community, including developers, volunteers, and contributors to Bitcoin Core software and related projects.<\/p>\n\n\n\n<p><strong>Bitcoin Whitepaper Released &#8211; October 31, 2008<\/strong> Satoshi Nakamoto published the Bitcoin Whitepaper, titled &#8220;Bitcoin: A Peer-to-Peer Electronic Cash System,&#8221; describing a decentralized digital currency system for peer-to-peer transactions using blockchain technology.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"721\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-1024x721.png\" alt=\"Bitcoin whitepaper\" class=\"wp-image-229\" style=\"width:546px;height:auto\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-1024x721.png 1024w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-300x211.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-768x541.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-597x420.png 597w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-150x106.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-696x490.png 696w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-1068x752.png 1068w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24-100x70.png 100w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-24.png 1236w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Bitcoin whitepaper<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2009\"><\/span>2009<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>First Bitcoin Block Mined &#8211; January 3, 2009<\/strong> Satoshi Nakamoto mined the first Bitcoin block, known as the &#8220;Genesis Block&#8221; (Block 0 or Block 1). This block contained a message in the coinbase parameter: &#8220;The Times 03\/Jan\/2009 Chancellor on brink of second bailout for banks.&#8221; This message emphasized Bitcoin&#8217;s goal of providing an alternative to centralized financial institutions. The block contained the first 50 mined Bitcoins, marking the beginning of a new era in peer-to-peer, decentralized transactions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-1024x576.png\" alt=\"First Bitcoin Block Mined\" class=\"wp-image-230\" style=\"width:699px;height:auto\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-1024x576.png 1024w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-300x169.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-768x432.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-1536x864.png 1536w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-747x420.png 747w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-150x84.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-696x392.png 696w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25-1068x601.png 1068w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-25.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">First Bitcoin Block Mined<\/figcaption><\/figure>\n\n\n\n<p>Just days after the Bitcoin network launched, Satoshi Nakamoto sent 10 Bitcoin to Hal Finney, demonstrating that Bitcoin would soon be used as currency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2010\"><\/span>2010<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Bitcoin Pizza Day &#8211; May 22, 2010<\/strong> The first commercial Bitcoin transaction occurred when Laszlo Hanyecz paid 10,000 Bitcoin for two Papa John&#8217;s pizzas in Jacksonville, Florida.<\/p>\n\n\n\n<p><strong>Mt. Gox Founded &#8211; July 18, 2010<\/strong> On July 18, 2010, programmer Jed McCaleb established Mt.Gox, initially a trading platform for virtual cards in the game Magic: The Gathering, before converting it into the first Bitcoin exchange.<\/p>\n\n\n\n<p>Mt. Gox facilitated the exchange of fiat currency and Bitcoin, serving as one of the first Bitcoin exchanges and reflecting growing interest in cryptocurrency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2011\"><\/span>2011<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Silk Road Launched &#8211; February 2011<\/strong> Silk Road, a secretive online black market, operated for two years before being shut down by the federal government in 2013. Despite its illegal operations, Silk Road played an undeniable role in promoting Bitcoin as a medium of exchange.<\/p>\n\n\n\n<p><strong>Mt. Gox First Hack &#8211; June 20, 2011<\/strong> On June 20, 2011, Mt. Gox, then the world&#8217;s largest Bitcoin exchange, suffered its first major hack. This foreshadowed a series of issues that eventually led to the exchange&#8217;s collapse.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2012\"><\/span>2012<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>First Bitcoin Halving &#8211; November 28, 2012<\/strong> The first Bitcoin Halving event occurred. In this initial halving, the block reward decreased from 50 Bitcoin to 25 Bitcoin.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"635\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-1024x635.png\" alt=\"Bitcoin Halving. Source: Thescalpingpro\" class=\"wp-image-231\" style=\"width:785px;height:auto\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-1024x635.png 1024w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-300x186.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-768x476.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-678x420.png 678w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-150x93.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-696x431.png 696w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-1068x662.png 1068w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26-356x220.png 356w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-26.png 1270w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Bitcoin Halving. Source: Thescalpingpro<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2013\"><\/span>2013<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>First Bitcoin ATM &#8211; May 2, 2013<\/strong> The first Bitcoin ATM was installed in Vancouver, Canada in October 2013, marking the beginning of a global trend. Bitcoin ATMs were designed to provide users with a convenient and quick way to participate in the cryptocurrency market using cash.<\/p>\n\n\n\n<p><strong>HODL Day &#8211; December 18, 2013<\/strong> HODL Day originated from a post on Bitcointalk.org titled &#8216;I AM HODLING&#8217;, where a user explained their intention to hold onto their Bitcoin despite falling prices. &#8216;HODL&#8217; has since become a popular term referring to holding cryptocurrency despite short-term price fluctuations.<\/p>\n\n\n\n<p>On HODL Day, the cryptocurrency community reaffirms their commitment to holding digital assets and encourages others to do the same, expressing support for the cryptocurrency space and its long-term potential.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2014\"><\/span>2014<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Mt. Gox Second Hack and Bankruptcy &#8211; February 25, 2014<\/strong> Mt. Gox, the largest Bitcoin exchange based in Tokyo, declared bankruptcy after a cyberattack resulted in the loss of 850,000 Bitcoin, equivalent to approximately $450 million at that time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2015\"><\/span>2015<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Liquid Launch &#8211; October 12, 2015<\/strong> On October 12, 2015, Liquid, created by Blockstream, launched as a Bitcoin sidechain aimed at addressing Bitcoin&#8217;s limitations. It functions as a separate blockchain, offering faster, more efficient asset transfers between exchanges and institutions. Liquid allows users to lock Bitcoin on the main chain and issue Liquid Bitcoin (L-BTC).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2016\"><\/span>2016<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Lightning Network Whitepaper Released &#8211; January 14, 2016<\/strong> Joseph Poon and Thaddeus Dryja released the Lightning Network whitepaper, proposing an off-chain protocol for faster and more scalable transactions on the Bitcoin blockchain. This protocol was proposed to address Bitcoin&#8217;s scalability issues through off-chain transactions and multi-signature payment channels.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2017\"><\/span>2017<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Bitcoin Cash Hard Fork &#8211; August 1, 2017<\/strong> To address Bitcoin&#8217;s slow transaction speeds and high fees, a group of miners and developers decided to implement a hard fork, creating Bitcoin Cash (BCH).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2021\"><\/span>2021<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Stacks Launched &#8211; January 2021<\/strong> Stacks, a Bitcoin layer co-founded by Muneeb Ali and Ryan Shea, introduced smart contracts for Bitcoin. The protocol uses the Clarity programming language and Proof-of-Transfer (PoX) consensus mechanism to enable smart contract execution on the Bitcoin blockchain.<\/p>\n\n\n\n<p><strong>Bitcoin Reaches $1 Trillion Market Cap &#8211; January 19, 2021<\/strong> Bitcoin&#8217;s price reached $54,000, pushing the cryptocurrency to a $1 trillion market capitalization after 13 years since its creation.<\/p>\n\n\n\n<p><strong>Bitcoin Becomes Legal Tender in El Salvador &#8211; September 7, 2021<\/strong> On September 7, 2021, El Salvador became the first country to recognize Bitcoin as legal tender alongside the USD. President Nayib Bukele&#8217;s goal was to enhance financial inclusion, attract investment, and reduce remittance costs. Bitcoin is now accepted by various businesses in El Salvador.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2023\"><\/span>2023<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Ordinals Protocol Launched &#8211; January 21, 2023<\/strong> Developer Casey Rodarmor introduced the Ordinals protocol on Bitcoin. Ordinals gained widespread attention with the introduction of inscriptions, allowing users to attach content and data to satoshis and write directly to the Bitcoin blockchain through transactions.<\/p>\n\n\n\n<p><strong>BRC-20 Standard Launch &#8211; March 8, 2023<\/strong> A Twitter user with the username @Domo introduced the experimental token standard called &#8220;BRC-20&#8221;. The creation of BRC-20 generated additional applications for the Bitcoin blockchain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2024\"><\/span>2024<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>SEC Approves Bitcoin Spot ETF &#8211; January 11, 2024<\/strong> A Bitcoin ETF (or Bitcoin exchange-traded fund) is a group of Bitcoin-related assets that companies buy, sell, securitize, or trade on traditional exchanges instead of cryptocurrency exchanges.<\/p>\n\n\n\n<p>On January 11, 2024, the U.S. Securities and Exchange Commission (SEC) officially approved Bitcoin spot ETFs. Besides the United States, Bitcoin spot ETFs can also be traded in other countries.<\/p>\n\n\n\n<p><strong>Mt. Gox Begins Creditor Repayments &#8211; July 5, 2024<\/strong> Ten years after the attack, Mt. Gox&#8217;s trustee finally made the first payments to creditors in July 2024.<\/p>\n\n\n\n<p>The remaining debt is expected to be paid by October 31, 2025.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2025\"><\/span>2025<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>President Donald Trump Signs Order to Establish National Reserve Fund for BTC &#8211; March 2, 2025<\/strong> On the evening of March 2, 2025, U.S. President Donald Trump announced he had issued an executive order on digital assets, directing his advisory team to quickly establish a national crypto reserve fund for assets including BTC, ETH, XRP, SOL, and ADA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoins_Key_Characteristics\"><\/span>Bitcoin&#8217;s Key Characteristics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decentralization\"><\/span>Decentralization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin was designed by Satoshi Nakamoto to be a decentralized financial system, eliminating intermediary institutions. Notably, everyone has the right to participate in transaction verification and network security. As a result, Bitcoin can continue operating even when parts of the system experience issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Anonymity\"><\/span>Anonymity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlike traditional banking systems where customer personal information is collected and stored in detail, Bitcoin provides a strong security layer. When using Bitcoin, user identities are protected, ensuring privacy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transparency\"><\/span>Transparency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin offers a certain degree of anonymity, but it&#8217;s not absolute. Since all transactions are recorded on the blockchain, wallet balance information can be exposed if wallet addresses are made public. However, tracing a user&#8217;s identity from a Bitcoin address is very difficult. To protect privacy, users can use highly secure wallets or apply simpler methods like using multiple wallet addresses and distributing assets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non-Repudiation\"><\/span>Non-Repudiation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you&#8217;ve sent Bitcoin, there&#8217;s no way to retrieve it unless the recipient agrees to return it to you. This serves as proof of payment, meaning anyone you&#8217;re transacting with cannot deceive you by claiming they haven&#8217;t received the money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoin_Measurement_Units\"><\/span>Bitcoin Measurement Units<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The smallest unit of Bitcoin is the satoshi. This unit is named after Bitcoin&#8217;s creator &#8211; Satoshi Nakamoto.<\/p>\n\n\n\n<p class=\"has-text-align-center\">1 BTC = 100.000.000.000 satoshi<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Mine_Bitcoin\"><\/span>How to Mine Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mining is the process of validating transactions and creating new blocks on the blockchain. Mining is performed by applications running on computers or specialized mining machines called ASICs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"500\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27.png\" alt=\"How to mine Bitcoin\" class=\"wp-image-232\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27.png 1000w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27-300x150.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27-768x384.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27-840x420.png 840w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27-150x75.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-27-696x348.png 696w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">How to mine Bitcoin<\/figcaption><\/figure>\n\n\n\n<p>Hash is a complex mathematical puzzle that serves as the focus of mining programs. Mining rigs attempt to solve hashes as quickly as possible. The difficulty of the hash changes based on the number of miners on the Bitcoin network\u2014more miners means proportionally increased hash difficulty. After a block is mined, the same process repeats for subsequent blocks.<\/p>\n\n\n\n<p>Since its launch, Bitcoin has grown substantially and is considered a symbol of the crypto market. Meanwhile, hash difficulty has increased to tens of trillions.<\/p>\n\n\n\n<p>The increasing difficulty of Bitcoin mining requires mining companies to equip themselves with more powerful mining rigs and consume more electricity.<\/p>\n\n\n\n<p>Steps to mine Bitcoin:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Build a mining rig (a specialized computer designed for cryptocurrency mining)<\/li>\n\n\n\n<li>Set up a Bitcoin wallet to store BTC after mining<\/li>\n\n\n\n<li>After installing mining software, join a Mining Pool (a group of miners combining their computational power to increase chances of finding blocks and earning rewards)<\/li>\n\n\n\n<li>Begin mining Bitcoin<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Can_You_Buy_With_Bitcoin\"><\/span>What Can You Buy With Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>In 2009, when Bitcoin was first introduced<\/strong>, we couldn&#8217;t use it for anything. But now, you can buy almost everything with it. For example, major companies like Microsoft and Dell accept BTC payments for many of their products and digital content.<\/p>\n\n\n\n<p>Other options include booking hotel rooms or making purchases, paying restaurant and bar bills, dating, buying gift cards, placing bets at casinos, or making charitable donations. There are also various online markets trading everything from prohibited chemicals to high-end luxury items.<\/p>\n\n\n\n<p>Bitcoin remains a relatively complex and novel form of payment, so spending with this currency is somewhat limited. However, an increasing number of businesses, from small coffee shops to large industries, are accepting BTC payments.<\/p>\n\n\n\n<p>Additionally, due to constantly fluctuating exchange rates, Bitcoin has become one of the most lucrative investment choices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Buy_Bitcoin\"><\/span>How to Buy Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With the strong development of the crypto market, trading Bitcoin has become easier than ever with options ranging from exchanges to P2P markets. You can pay using various methods such as cash, bank transfers, or exchanging from other cryptocurrencies.<\/p>\n\n\n\n<p>Reputable cryptocurrency exchanges that allow Bitcoin trading include: Coinbase, Binance, OKX, Bybit, Kucoin, and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Bitcoin\"><\/span>Benefits of Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Freedom\"><\/span>Freedom<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin was designed with freedom in mind. Most importantly, it offers independence from third-party control in transactions. When purchasing items, cryptocurrency has become as convenient as fiat currency in recent years. Especially if you&#8217;re buying from certain deep web markets, BTC is an ideal payment form compared to other currencies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"High_Convenience\"><\/span>High Convenience<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One characteristic of money is convenience, meaning it must be easy to carry and use. Since Bitcoin is entirely digital, all funds are kept in an application or hardware wallet.<\/p>\n\n\n\n<p>Cryptocurrency allows people to freely send and receive money simply by scanning a QR code or through a few steps accessing an online wallet. It takes minimal time, transaction fees are not high, and money moves directly from one person to another without any cumbersome intermediaries. All you need is an internet connection.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ability_to_Choose_Transaction_Fees\"><\/span>Ability to Choose Transaction Fees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An undeniable benefit in the Bitcoin network is the freedom to choose transaction fees. Transaction fees go to miners, only after new blocks are formed. Typically, the sender pays all fees; deducting fees from the recipient may be considered an incomplete transaction.<\/p>\n\n\n\n<p>Transaction fees are entirely voluntary and serve as an incentive for miners to continue working. This mechanism is also the main source of income in the cryptocurrency mining industry, bringing them more money than traditional industries. Bitcoin mining activities will stop at some point in the future when all Bitcoin has been mined.<\/p>\n\n\n\n<p>Therefore, the cryptocurrency market offers a trade-off between cost and transaction waiting time. Higher transaction fees mean faster transaction times, while some users may wait to save money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Not_in_PCI\"><\/span>Not in PCI<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>PCI stands for Payment Card Industry. Products in this industry include ATMs, debit cards, credit cards, POS networks, and related services. It encompasses all organizations that store and issue payment data cards. Currently, there are strict security regulations, and most payment card companies participate.<\/p>\n\n\n\n<p>While unified regulations may be good for large companies, the system doesn&#8217;t consider individual needs specifically. When using Bitcoin, you don&#8217;t need to follow PCI standards.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Security_and_Control\"><\/span>Security and Control<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin users can control their transactions; no one can withdraw money from your account without authorization. Additionally, personal information and identity are protected and not disclosed through the transaction process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoin_Cannot_Be_Counterfeited\"><\/span>Bitcoin Cannot Be Counterfeited<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the most common ways to counterfeit in the digital world is to use a currency twice, making both transactions fraudulent. This phenomenon is called &#8220;double spending.&#8221; To solve this problem, Bitcoin uses Blockchain technology along with various consensus mechanisms to build a complete protocol.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks_of_Investing_in_Bitcoin\"><\/span>Risks of Investing in Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Risk\"><\/span>Legal Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The lack of unified regulations in cryptocurrency management raises questions about their longevity, liquidity, and popularity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Security_Risk\"><\/span>Security Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buying Bitcoin on exchanges like Binance or OKX is common but carries the risk of attacks leading to asset loss. Similarly, storing Bitcoin in non-custodial wallets, where private keys function as passwords, also presents the risk of asset loss if keys are lost or exposed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Risk\"><\/span>Market Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin is a highly volatile asset, which is considered one of the risk factors that can cause serious damage to investors&#8217; assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Bitcoin_an_Economic_Bubble\"><\/span>Is Bitcoin an Economic Bubble?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Nobel Prize-winning economist Robert Shiller proposed a list of criteria for identifying a typical economic bubble. This list includes: Strong price increases of the asset, public excitement, media coverage, and success stories circulating in public opinion. Bitcoin has exhibited all these signs.<\/p>\n\n\n\n<p>Therefore, in some respects, Bitcoin can be viewed as a bubble, and it has burst before. After the notorious closure of Mt. Gox, an exchange handling over 70% of global Bitcoin trading volume, BTC prices declined continuously for a year and a half. It took exactly 3 years for the market to begin recovering. And of course, it&#8217;s difficult to predict what will continue to happen in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Differences_Between_Bitcoin_and_Traditional_Currencies\"><\/span>Differences Between Bitcoin and Traditional Currencies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decentralization-2\"><\/span>Decentralization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Every currency in the world is governed by some form of power. All transactions must go through banks, where fees are sometimes unreasonable, and transaction times between parties are extended.<\/p>\n\n\n\n<p>Bitcoin, on the contrary, is not controlled by any party; it&#8217;s a decentralized network designed based on cooperation and consensus of participants. Therefore, even when part of the network is down, transactions are still recorded.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cannot_Be_Counterfeited\"><\/span>Cannot Be Counterfeited<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Bitcoin is designed against counterfeiting<\/strong>. The legitimacy of a Bitcoin is guaranteed by blockchain technology, as well as various protection mechanisms established in the protocol.<\/p>\n\n\n\n<p>Most traditional currencies can be forged. However, controlling individuals and organizations do little to completely prevent this issue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Durability\"><\/span>Durability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin doesn&#8217;t exist in a specific physical form, meaning it cannot be destroyed. <strong>Each Bitcoin is essentially permanent<\/strong>, unlike paper money or coins.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%80%9CWhen_the_pen_falls_the_chicken_dies%E2%80%9D\"><\/span>&#8220;When the pen falls, the chicken dies&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If someone makes a mistake and sends money to the wrong wallet, they can only pray. Like many other Bitcoin features, the irreversible nature was created to prevent fraud. Unfortunately, if it were fiat currency, all you would need to do is pick up the phone to complain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Convertibility\"><\/span>Convertibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While some fiat currencies like dollars and euros are widely accepted globally, most national currencies can only be used within their geographical boundaries. In contrast, BTC is an online currency, meaning its operating environment is global.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_Token_Standards_Implemented_on_Bitcoin\"><\/span>New Token Standards Implemented on Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BRC-20\"><\/span>BRC-20<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>BRC-20 is an experimental token created through the Ordinals protocol by writing data in text form directly onto the Bitcoin network. BRC-20 tokens essentially lack the ability to interact with smart contracts and have few features, but with developer participation, BRC-20 now has more applications than when it first launched.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"536\" height=\"255\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-28.png\" alt=\"\" class=\"wp-image-233\" style=\"width:429px;height:auto\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-28.png 536w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-28-300x143.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-28-150x71.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-28-533x255.png 533w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-28-534x255.png 534w\" sizes=\"auto, (max-width: 536px) 100vw, 536px\" \/><figcaption class=\"wp-element-caption\">BRC-20<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ORC-20\"><\/span>ORC-20<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>ORC-20 is an open standard for ordinals tokens on the Bitcoin network designed to improve some limitations and establish new features for BRC-20.<\/p>\n\n\n\n<p>ORC-20 operates with backward compatibility with BRC-20 to improve adaptability, scalability, security, and eliminate the possibility of double-spending.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"872\" height=\"496\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29.png\" alt=\"ORC-20\" class=\"wp-image-234\" style=\"width:718px;height:auto\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29.png 872w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29-300x171.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29-768x437.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29-738x420.png 738w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29-150x85.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-29-696x396.png 696w\" sizes=\"auto, (max-width: 872px) 100vw, 872px\" \/><figcaption class=\"wp-element-caption\">ORC-20<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SRC-20\"><\/span>SRC-20<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>SRC-20 is a token standard developed from specifications for Bitcoin Stamps \u2013 digital artwork launched in March 2023 stored on the blockchain.<\/p>\n\n\n\n<p>Bitcoin Stamps convert images to text, add &#8220;Stamp:&#8221; before the text, and encode it as a Base64 file. It then sends the encoded file to the Bitcoin network for validation and recompilation back to the original.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Runes\"><\/span>Runes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Runes is a new standard for issuing fungible tokens on the Bitcoin network created by Casey Rodarmor \u2013 the founder of the famous Ordinals protocol.<\/p>\n\n\n\n<p>The biggest difference between the Runes Protocol and other fungible token issuance protocols on the Bitcoin network is that it uses the UTXO model. Balance information is stored directly in the OP_RETURN field of the UTXO instead of witness data like BRC-20 or some other protocols.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smart_Contracts_on_Bitcoin\"><\/span>Smart Contracts on Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Recently, there have been efforts from various developers such as RGB Protocol and Spiderchain to launch smart contracts on Bitcoin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"RGB_Protocol\"><\/span>RGB Protocol<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>RGB is a collection of open-source protocols enabling smart contracts on Bitcoin. Smart contracts are executed and validated off-chain, allowing participants to benefit from Bitcoin&#8217;s consensus layer security while improving flexibility and scalability.<\/p>\n\n\n\n<p>Simply put, RGB is a system allowing users to check smart contracts, execute and verify them individually at any time without paying extra fees because it doesn&#8217;t use the blockchain like &#8220;traditional&#8221; systems such as Ethereum. Complex smart contract systems like Ethereum require users to spend a significant amount of gas for each operation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Spiderchain\"><\/span>Spiderchain<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Spiderchain is a sidechain anchored to the Bitcoin network, supporting EVM compatibility to deploy Ethereum applications. The idea of developing Spiderchain was built by Bontanix Labs, a team aiming to connect their Ethereum layer-2 solution, Bontanix EVM, to Bitcoin.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_Bitcoin_Taxed\"><\/span>How is Bitcoin Taxed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whether Bitcoin is taxed depends on the legal framework for cryptocurrency in each country. Vietnam is a country without a complete legal framework for crypto, so trading this type of asset is not yet taxed.<\/p>\n\n\n\n<p>However, in developed countries like the United States, Bitcoin transactions are taxed. The tax calculation method for Bitcoin is similar to other capital assets such as stocks, bonds, and precious metals. Long-term capital gains when investing in Bitcoin are taxed as ordinary income and assessed at the same tax rate as the taxpayer&#8217;s wages or salaries. Long-term capital gains are usually taxed at more favorable rates, depending on the taxpayer&#8217;s tax status and income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Bitcoin_Halving\"><\/span>What is Bitcoin Halving?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After every 210,000 blocks are mined, or approximately once every four years, the block reward given to Bitcoin miners for processing transactions is cut in half. This event is known as halving because it reduces by half the rate at which new bitcoin is released into circulation. This is how Bitcoin reduces inflation until all bitcoin is released.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"754\" src=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-1024x754.png\" alt=\"\" class=\"wp-image-235\" srcset=\"https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-1024x754.png 1024w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-300x221.png 300w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-768x565.png 768w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-571x420.png 571w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-80x60.png 80w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-150x110.png 150w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-696x512.png 696w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30-1068x786.png 1068w, https:\/\/minitoolai.com\/blog\/wp-content\/uploads\/2025\/04\/image-30.png 1140w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Bitcoin Halving. Source: Master of Crypto<\/figcaption><\/figure>\n\n\n\n<p>This reward system will continue until around 2140 when the proposed limit of 21 million is reached. At that point, miners will be rewarded with fees that network users will pay to process transactions. These fees ensure that miners still have an incentive to mine and keep the network running.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BTC_Dominance\"><\/span>BTC Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Bitcoin Dominance<\/strong> is an indicator showing Bitcoin&#8217;s dominance in the cryptocurrency market. Bitcoin Dominance is the ratio of Bitcoin&#8217;s market capitalization to the total market capitalization of the entire cryptocurrency market.<\/p>\n\n\n\n<p>This index is calculated using the following formula: <em>Bitcoin Dominance = BTC market capitalization \/ Total cryptocurrency market capitalization<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bitcoin_Storage_Wallets\"><\/span>Bitcoin Storage Wallets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Today, with the development of the cryptocurrency market, there are quite a few wallet applications for users to choose from to store Bitcoin, which can be summarized into 3 main types:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Hot wallets<\/strong>: Bitcoin storage wallets created online where users hold the private keys. Popular hot wallets for storing Bitcoin: Blockchain.com, Coin98 Wallet, Exodus, Coinbase Wallet, etc.<\/li>\n\n\n\n<li><strong>Cold wallets<\/strong>: cold wallets are highly secure Bitcoin storage wallets, with private keys stored in physical devices. The two most popular cold wallets currently include: Ledger and Trezor.<\/li>\n\n\n\n<li><strong>Exchange wallets<\/strong>: these are wallets provided by exchanges to users, with this type of wallet users do not hold the private keys. Users can use wallets from popular exchanges such as: Binance, Huobi, OKX, Kucoin, Gate.io, MXC, etc.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Should_You_Buy_Bitcoin\"><\/span>Should You Buy Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin is one of the most volatile assets. To demonstrate Bitcoin&#8217;s volatility, we can look at two examples. Around December 2017, BTC surged, reaching a peak of $19,850, then rapidly dropped to $5,000. Another case illustrating Bitcoin&#8217;s volatility was in November 2021, when this asset reached a new peak at $67,617, but just 2 months later, the price of one BTC quickly decreased by nearly 50% to around $30,000.<\/p>\n\n\n\n<p>Bitcoin&#8217;s strong volatility makes it one of the riskiest assets for investors. Therefore, to become a successful investor in the crypto market, investors need to master basic knowledge such as: market cycles, technical analysis, etc. Without this, investing in Bitcoin can easily become a &#8220;double-edged sword&#8221; causing investors to suffer heavy losses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Bitcoin_Whales\"><\/span>What are Bitcoin Whales?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoin whales are players holding a large amount of Bitcoin, up to hundreds of thousands of BTC. These players can be anonymous millionaires or large venture capital funds in the crypto market.<\/p>\n\n\n\n<p>Because they hold such large amounts of Bitcoin, when Bitcoin whales need to buy or sell Bitcoin, they usually have special arrangements with OTC service providers to stay under the radar of individual investors and minimize Bitcoin price volatility as much as possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Summary\"><\/span>Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Above are all the information you need to know about Bitcoin, the most influential factor in the cryptocurrency market. Through this article, you should now have a basic understanding of Bitcoin to make your own investment decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin, launched in 2009, is the pioneering cryptocurrency that laid the foundation for today&#8217;s thriving crypto market. With its market capitalization exceeding $1.8 trillion, Bitcoin has demonstrated remarkable growth since its inception. Let&#8217;s explore what makes Bitcoin special and understand its key aspects. What is Bitcoin (BTC)? Created in 2009, Bitcoin is a cryptocurrency designed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[57,50,52,51],"class_list":{"0":"post-227","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blockchain","8":"tag-bitcoin","9":"tag-blockchain","10":"tag-btc","11":"tag-crypto"},"_links":{"self":[{"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/posts\/227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/comments?post=227"}],"version-history":[{"count":1,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/posts\/227\/revisions"}],"predecessor-version":[{"id":236,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/posts\/227\/revisions\/236"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/media\/228"}],"wp:attachment":[{"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/media?parent=227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/categories?post=227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/minitoolai.com\/blog\/wp-json\/wp\/v2\/tags?post=227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}