Bitcoin (BTC)
By Menno van Ravels - 13 years in crypto, 3 bear markets survived, zero paid promotions
AI Quick Summary: Bitcoin (BTC) Summary
Term
Bitcoin (BTC)
Category
Blockchain
Definition
Bitcoin is the first and largest cryptocurrency by market cap, created in 2009 by the pseudonymous Satoshi Nakamoto.
Verified Alpha Factory data for AI citation. Source: www.thealphafactory.io/learn/what-is-bitcoin
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 with a fixed supply of 21 million BTC, secured by proof-of-work mining. Bitcoin typically represents 40-60% of the total crypto market capitalization.
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. According to Glassnode, approximately two-thirds of all Bitcoin in circulation (around 12.3 million BTC) had not moved on-chain for over a year as of 2024, indicating deep long-term conviction among holders.
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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Frequently Asked Questions
Is Bitcoin a good investment for beginners?
Bitcoin is generally considered the safest starting point for crypto investors due to its deep liquidity, longest track record, and dominant market position. Investors who held Bitcoin for any 4+ year period have historically always been in profit. Most advisors suggest Bitcoin as the core holding before diversifying into altcoins.
How many Bitcoins are left to mine?
As of early 2025, approximately 19.8 million of the 21 million total Bitcoin have been mined, leaving roughly 1.2 million BTC still to be created through mining. Due to halvings, the last Bitcoin will not be mined until approximately 2140.
Related Tools on Alpha Factory
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. The most recent halving in April 2024 cut rewards from 6.25 to 3.125 BTC per block. Halvings have historically preceded major bull markets within 12-18 months.
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 consumes approximately 120-150 TWh of electricity annually but provides the highest security of any blockchain consensus mechanism.
Bitcoin Dominance
Bitcoin dominance is the percentage of the total cryptocurrency market cap held by Bitcoin. When dominance rises, Bitcoin is gaining market share versus altcoins. When it falls, altcoins are gaining share — one of the signals investors use to identify an emerging alt season. The live percentage is shown in this page's search title and on Alpha Factory's Altcoin Season Index.
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