Bitcoin (BTC)
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
Bitcoin is the first and largest cryptocurrency by market cap, created in 2009 by the pseudonymous Satoshi Nakamoto. It functions as a decentralized digital currency and store of value secured by proof-of-work mining.
Bitcoin (BTC) is a decentralized digital currency that allows peer-to-peer transactions without intermediaries like banks. It was introduced in a 2008 whitepaper by Satoshi Nakamoto and launched in January 2009.
Key properties of Bitcoin: - Fixed supply: only 21 million BTC will ever exist - Decentralized: no single entity controls the network - Proof of work: miners secure the network by solving computational puzzles - Halving: mining rewards are cut in half roughly every 4 years, reducing new supply
Bitcoin is often called "digital gold" because of its scarcity and store-of-value properties. It has the largest market capitalization of any cryptocurrency, typically representing 40-60% of the total crypto market.
For most crypto investors, Bitcoin forms the core of their portfolio. Its relative stability (compared to altcoins) and deep liquidity make it the default choice for DCA strategies. Alpha Factory's DCA Simulator supports Bitcoin backtesting across multiple market cycles.
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Related Terms
Bitcoin Halving
A Bitcoin halving is a programmed event occurring roughly every 4 years that cuts the mining reward in half, reducing new BTC supply. Halvings have historically preceded major bull markets.
Proof of Work (PoW)
Proof of work is a consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and create new blocks. Bitcoin uses proof of work, which is energy-intensive but highly secure.
Bitcoin Dominance
Bitcoin dominance is the percentage of the total cryptocurrency market cap held by Bitcoin. When dominance rises, Bitcoin outperforms altcoins. When it falls, altcoins tend to rally (alt season).
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