Bitcoin (BTC)

Definition

Bitcoin is a decentralized digital currency created in 2009 by a mysterious figure named Satoshi Nakamoto. * It operates without a central bank or single administrator. * It enables instant peer-to-peer (P2P) payments to anyone, anywhere in the world.

The Technology: Blockchain

At its core, Bitcoin relies on a distributed ledger called the Blockchain. * Immutability: Transactions are recorded in blocks and linked together cryptographically. Once recorded, the data cannot be altered retroactively without the consensus of the network. * Proof of Work (PoW): Miners solve complex mathematical puzzles to secure the network and validate transactions, earning new bitcoins as a reward.

Economic Model: Absolute Scarcity

Bitcoin is designed to be deflationary, contrasting with fiat currencies (like the USD) that can be printed endlessly. * Hard Cap: There will never be more than 21 million bitcoins. * The Halving: Every 210,000 blocks (roughly every 4 years), the mining reward is cut in half. This supply shock historically triggers major price cycles.

Narrative: Digital Gold

While originally envisioned as a payment system ("Electronic Cash"), Bitcoin has evolved into a Store of Value. * Investors view it as a hedge against inflation and currency debasement, earning it the nickname "Digital Gold." * With the approval of Spot ETFs in the US, it has firmly entered the realm of institutional finance.