Bitcoin
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The Genesis Block
Section titled “The Genesis Block”Bitcoin was introduced in 2008 through a whitepaper published under the pseudonym Satoshi Nakamoto. The first block, known as the Genesis Block (Block 0), was mined on January 3, 2009.
Key Milestones
Section titled “Key Milestones”- 2008 — Whitepaper published: “Bitcoin: A Peer-to-Peer Electronic Cash System”
- 2009 — Genesis Block mined, first Bitcoin transaction
- 2010 — First real-world transaction: 10,000 BTC for two pizzas
- 2011 — Bitcoin reaches parity with USD
- 2013 — Price surpasses $1,000 for the first time
- 2017 — Bitcoin hits $19,783, mainstream attention explodes
- 2020 — Institutional adoption begins (MicroStrategy, Tesla)
- 2021 — El Salvador adopts Bitcoin as legal tender
- 2024 — Spot Bitcoin ETFs approved in the United States
What is the Halving?
Section titled “What is the Halving?”Every 210,000 blocks (~4 years), Bitcoin’s block reward is cut in half, reducing the rate of new supply entering circulation.
Halving Timeline
Section titled “Halving Timeline”| Year | Block Reward | Price (approx) |
|---|---|---|
| 2009 | 50 BTC | $0 |
| 2012 | 25 BTC | $12 |
| 2016 | 12.5 BTC | $650 |
| 2020 | 6.25 BTC | $8,700 |
| 2024 | 3.125 BTC | $64,000 |
| 2028 | 1.5625 BTC | ? |
Why It Matters
Section titled “Why It Matters”- Predictable monetary policy
- Decreasing inflation rate
- Historically precedes bull markets
- Total supply capped at 21 million
Key Numbers
Section titled “Key Numbers”| Metric | Value |
|---|---|
| Max Supply | 21,000,000 BTC |
| Circulating | ~19,600,000 BTC |
| Lost Forever (est.) | ~3,700,000 BTC |
| Daily Issuance | ~450 BTC |
| Next Halving | ~2028 |
On-Chain Signals
Section titled “On-Chain Signals”- MVRV Ratio — Market value vs realized value, gauges over/undervaluation
- SOPR — Spent output profit ratio, measures profit-taking behavior
- NUPL — Net unrealized profit/loss across all holders
- Stock-to-Flow — Scarcity model based on existing supply vs new production
Proof of Work
Section titled “Proof of Work”Miners compete to solve cryptographic puzzles, validating transactions and adding blocks to the chain. The winner earns the block reward plus transaction fees.
Mining Hardware Evolution
Section titled “Mining Hardware Evolution”- CPU (2009) — Satoshi mined with a regular computer
- GPU (2010) — Graphics cards offered 10-100x speedup
- FPGA (2011) — Custom circuits, more efficient
- ASIC (2013+) — Purpose-built chips, dominant today
Key Metrics
Section titled “Key Metrics”- Hash Rate — Total network computing power
- Difficulty — Adjusts every 2,016 blocks (~2 weeks)
- Energy — Increasingly shifting to renewable sources
Wallet Types
Section titled “Wallet Types”- Hardware — Ledger, Trezor, ColdCard. Best for long-term storage
- Software — Electrum, Sparrow, Blue Wallet. Good balance of security and convenience
- Mobile — Muun, Phoenix, Green. Great for everyday spending
- Paper — Offline generated keys printed on paper. Maximum cold storage
Security Tips
Section titled “Security Tips”- Never share your seed phrase
- Use multi-sig for large holdings
- Verify receive addresses on the device screen
- Keep firmware updated
What is Lightning?
Section titled “What is Lightning?”A layer 2 protocol that enables near-instant, low-fee Bitcoin transactions through payment channels.
Benefits
Section titled “Benefits”- Sub-second transactions
- Fees under 1 satoshi
- Millions of TPS capacity
- Micropayments enabled
Spot Bitcoin ETFs
Section titled “Spot Bitcoin ETFs”Approved January 2024, spot ETFs allow traditional investors to gain Bitcoin exposure through regulated brokerage accounts.
Major Issuers
Section titled “Major Issuers”- BlackRock (IBIT)
- Fidelity (FBTC)
- Grayscale (GBTC)
- ARK/21Shares (ARKB)