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Bitcoin (BTC)

  1. Official Links:

    1. Official Website: https://www.bitcoin.org/

    2. Whitepaper: https://bitcoin.org/bitcoin.pdf

    3. Explorers: https://blockchair.com/bitcoin/ https://btc.tokenview.io/ https://www.oklink.com/btc https://3xpl.com/bitcoin https://explorer.btc.com/ https://www.blockchain.com/explorer https://live.blockcypher.com/btc/ https://explorer.coinex.com/btc https://blockstream.info/ https://btc.cryptoid.info/btc/

    4. Communities:

      1. Twitter:

        1. Link: https://twitter.com/Bitcoin

        2. Username: @Bitcoin

        3. Followers (#): ~6.3m

      2. Reddit:

        1. Link: https://www.reddit.com/r/Bitcoin/

        2. Username: @r/Bitcoin

        3. Members (#): ~6m

      3. Telegram:

        1. Link: t.me/bitcoin

        2. Username: @Bitcoin

        3. Followers (#): ~107k

  2. Working Platforms:

    1. Top Trading Platforms: Binance (Centralized Exchange)/(CEX) Coinbase Bybit Kraken Gate Bitget …

    2. Top Native/Supported Wallets: Ledger (Hardware Wallet)/(HW) Trezor Trust Wallet (Software Wallet)/(SW) Exodus Electrum …

  3. Build Specifications:

    1. Asset Type (Coin/Token): Coin

    2. Narratives/Categories: Currency Layer 1 Infrastructure …

    3. Issuance Blockchain: Bitcoin (Itself)

    4. Consensus Mechanism: Proof of Work (PoW)

    5. Algorithm: SHA256

    6. Organization Structure: Decentralized

    7. Development Status: Working Product

    8. Mineable: Yes

    9. Pre-Mined: No

    10. Open Source: Yes

    11. Transactions per Second (TPS):

      1. Real-Time TPS (Last 30 Days) (#): ~5.5

      2. Max Recorded TPS (#): 10.92

  4. Price Specifications:

    1. Current Price ($): ~$40,500

    2. All-Time High (ATH):

      1. Date: 10/Nov/2021

      2. Price ($): ~$69,000

      3. Market Cap ($): ~$1.3t

      4. Circulating Supply (# and %): ~18.87m (89.9% Compared to M.S.)

    3. All-Time Low (ATL):

      1. Date: N/A

      2. Price ($): N/A

      3. Market Cap ($): N/A

      4. Circulating Supply (# and %): N/A

    4. % Up from ATL: N/A

    5. % Down from ATH: ~-41%

    6. % to ATH: ~70%

    7. Hodlers:

      1. Balance ($): ~$560b

      2. Balance/Market Cap (Ratio): 70%

    8. Holders (#): ~53m

    9. Beta Coefficient: 1.09

  5. Market Capitalization (Market Cap) Specifications:

    1. Rank: 1

    2. Market Cap ($): ~$800b

    3. Fully Diluted Valuation (FDV) ($): ~$850b

    4. Total Value Locked (TVL) ($): ~$280m

    5. Market Cap/TVL (Ratio): 2,860 > 1 (Overvalued)

  6. Supply Specifications:

    1. Circulation Supply (# and %): ~19.6m (93.3% Compared to M.S.)

    2. Total Supply (# and %): ~19.6m (93.3% Compared to M.S.)

    3. Maximum Supply (#): 21m

    4. Supply Inflation (Annual Rate) (%): ~2-5% (Last Year)

    5. Supply on Exchanges (# and $ and %): ~1.63m, ~$68b, ~8.3%

    6. Total Addresses (#): ~1.26b

      1. With Balance (# and %): ~51.66m (4.1%)

        1. Hodlers (# and %): 35.3m (67.87%)

        2. Cruisers (# and %): 13.10m (25.15%)

        3. Traders (# and %): 3.65m (7%)

  7. Distribution Specifications:

    1. Token Distribution (%): 100%

      1. Community: 100%

    2. Ownership Distribution (%): 100%

      1. Retails (%): (88.83%)

      2. Investors (# and %): 39 (8.86%)

      3. Whales (# and %): 2 (2.31%)

  8. Usage Specifications:

    1. Daily Active Addresses (#): ~815k

    2. Daily Active Users (DAU) (Average 30 Days) (#): ~490k

    3. Total Developers (#): 356 (Full-Time)

  9. Security Specifications:

    1. Security Score: 96.87/100 (AAA) skynet.certik.com

    2. Total Value Hacked ($): $0

  10. About:

    1. When was it created: Bitcoin (BTC) is a cryptocurrency launched on 3rd January 2009, where the first genesis block was mined on 9th January 2009.

    2. Who created it and what is their background: The creator is an unknown individual or group that goes by the name Satoshi Nakamoto with the idea of an electronic peer-to-peer cash system as it is written in a whitepaper. Until today, the true identity of Satoshi Nakamoto has not been verified though there has been speculation and rumor as to who Satoshi might be.

    However, while Nakamoto was the original inventor of Bitcoin, as well as the author of its very first implementation, he handed the network alert key and control of the code repository to Gavin Andresen, who later became the lead developer at the Bitcoin Foundation. Over the years a large number of people have contributed to improving the cryptocurrency’s software by patching vulnerabilities and adding new features. 3. What is it: It is a decentralized digital currency that is based on cryptography. As such, it can operate without the need of a central authority like a central bank or a company. It is unlike government-issued or fiat currencies such as US Dollars or Euro which are controlled by the country’s central bank. The decentralized nature allows it to operate on a peer-to-peer network whereby users can send funds to each other without going through intermediaries. 4. How does it work: While the general public perceives Bitcoin as a physical-looking coin, it is far from that. Under the hood, it is a distributed accounting ledger that is stored as a chain of blocks - hence the name blockchain. Let's compare how Bitcoin is different from a commercial bank, which operates as a centralized system. Given a situation where Alice wants to transact with Bob, the bank is the only entity that holds the ledger that describes how much balance Alice and Bob have. As the bank maintains the ledger, they will do the verification as to whether Alice has enough funds to send to Bob. Finally, when the transaction successfully takes place, the Bank will deduct Alice’s account and credit Bob’s account with the latest amount. Bitcoin conversely works in a decentralized manner. Since there is no central figure like a bank to verify the transactions and maintain the ledger, a copy of the ledger is distributed across Bitcoin nodes. A node is a piece of software that anybody can download and run to participate in the network. With that, everybody has a copy of how much balance Alice and Bob have, and there will be no dispute of fund balance. Now, if Alice were to transact with Bob using Bitcoin. Alice will have to broadcast her transaction to the network that she intends to send $1 to Bob in an equivalent amount of Bitcoin. So how does the system determine if Alice has enough Bitcoin to execute the transaction? This is where mining takes place. Bitcoin Mining: A Bitcoin miner will use his or her computer rigs to validate Alice’s transaction to be added to the ledger. To stop a miner from adding any arbitrary transactions, they will need to solve a complex puzzle. Only if the miner can solve the puzzle (called the Proof of Work), which happens at random, then he or she add the transactions to the ledger and the record is final. Since running computer rigs costs money due to capital expenditure, which includes the cost of the rigs and the cost of electricity, miners are rewarded with a new supply of bitcoins. This is the monetary system behind Bitcoin, where the fees for validating transactions on the network are paid by the person who wishes to transact (in this case it is Alice). This makes the Bitcoin ledger resilient against fraud in a trustless manner. While it is resilient, there are still some risks associated with the system such as the 51% attack where miners control more than 51% of the total computation power and also there can be security risks outside of the control of the Bitcoin protocol.

    Unlike traditional currencies, BTC doesn't rely on an organization to issue its currency but instead relies on miners to solve specific mathematical algorithm that generates BTC once every 10 minutes. Bitcoin proposes a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best-effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone. 5. What are the use cases and what problems does it solve: Bitcoin is the first cryptocurrency and decentralized global payment system - the true OG. Bitcoin was envisioned as an alternative to traditional electronic payment methods, removing the requirement for a central bank or administrator. Transactions on the Bitcoin network are sent between users directly with no intermediary.

    The top crypto is considered a store of value, like gold, for many — rather than a currency. This idea of the first cryptocurrency as a store of value, instead of a payment method, means that many people buy the crypto and hold onto it long-term (or HODL) rather than spending it on items like you would typically spend a dollar — treating it as digital gold.

    Permissionless and borderless. You can send payment transactions in BTC to anyone, at any time, and in any amount, with no need for intermediaries like banks or governments. Nobody can restrict your remittance, freeze it, or control it in any way; You do not need to provide any ID or pass KYC/AML, which constitutes technology suitable for the unbanked, the privacy-conscious communities, or people in financially underdeveloped or sanctioned countries; Bitcoin cannot be tampered with since nobody can block or freeze a transaction of any amount; Irreversible once a transaction is added to the blockchain; Fast. Transactions can be processed within seconds and become fully irreversible within an hour; Available and online 24 hours a day/365 days per year. 6. What technology is it using and what are its features (scalability and innovations): SegWit: In August 2017, the SegWit (Segregated Witness) upgrade changed how data was stored on the Bitcoin blockchain. By separating signature data (witness data) from transaction data, SegWit allows more transactions to be stored in each block, increasing the network’s capacity. In addition, SegWit allows adding new transaction types, including the Lightning Network, a Layer-2 scaling solution that enables off-chain micropayments with reduced fees.

    Bitcoin Lightning Network: If you’ve been following Bitcoin recently, you’ve probably heard of the Lightning Network—it’s one of the most exciting projects in the Bitcoin ecosystem at the moment. The Lightning Network addresses Bitcoin’s limited scalability by introducing a layer on top of the Bitcoin blockchain that can handle transactions at much higher speeds and lower costs. By itself, the Bitcoin network can handle less than 10 transactions per second, which limits its use as a currency on a global scale. The network also isn’t suitable for sending very small payments (microtransactions), as transaction fees can be higher than the value of the payment itself. The Lightning Network allows users to establish payment channels that use smart contracts to process transactions outside of the main Bitcoin blockchain. Only the opening and closing of payment channels are broadcasted to the Bitcoin blockchain. When a channel is closed, the users’ BTC balances are settled on the Bitcoin blockchain. The Lightning Network was first proposed by Joseph Poon and Thaddeus Dryja in 2015, and the protocol has been making steady advances in recent years. Services like Strike simplify the process of making BTC payments via the Lightning Network, and the protocol is also being adopted by a growing number of cryptocurrency exchanges for Bitcoin withdrawals and deposits. 7. What makes it unique: Some concepts for a similar type of decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use. Bitcoin’s most unique advantage comes from the fact that it was the very first cryptocurrency to appear on the market. It has managed to create a global community and give birth to an entirely new industry of millions of enthusiasts who create, invest in, trade, and use Bitcoin and other cryptocurrencies in their everyday lives. The emergence of the first cryptocurrency has created a conceptual and technological basis that subsequently inspired the development of thousands of competing projects. The entire cryptocurrency market — now worth more than $2 trillion — is based on the idea realized by Bitcoin: money that can be sent and received by anyone, anywhere in the world without reliance on trusted intermediaries, such as banks and financial services companies. 8. Is it inflationary, deflationary, or fixed supply: With a total supply of 21 million, its scarcity and decentralized nature make it almost impossible to inflate or manipulate. 9. How is/will it be distributed: It is distributed among the miners. 10. When will it be distributed 100%: Bitcoin's supply is programmed to be capped at 21,000,000 coins. On 3rd January 2009, The Genesis Block started the Bitcoin Network. Miners' reward is halved every 210,000 blocks or every 4 years. Halving is the process where the block rewards given to miners for successfully mining each block is cut in half. The halving process will continue every 210,000 blocks until all 21 million bitcoins have been mined completely - with the last sats expected to be rewarded in 2142. Once 21 million Bitcoins have been minted, there will no longer be a new supply. Miners are expected to earn revenue through transaction fees. 11. Why does it have value: Bitcoin is the first decentralized, peer-to-peer digital currency. One of its most important functions is that it is used as a decentralized store of value. In other words, it provides for ownership rights as a physical asset or as a unit of account. However, the latter store-of-value function has been debated. Many crypto enthusiasts and economists believe that high-scale adoption of the top currency will lead us to a new modern financial world where transaction amounts will be denominated in smaller units. The top crypto is considered a store of value, like gold, for many — rather than a currency. This idea of the first cryptocurrency as a store of value, instead of a payment method, means that many people buy the crypto and hold onto it long-term (or HODL) rather than spending it on items like you would typically spend a dollar — treating it as digital gold.

    Moreover, anyone can create a Bitcoin wallet and start using the network, making it open to anyone in the world regardless of their financial conditions. Bitcoin is an unencodable network that allows for fast peer-to-peer transactions throughout the world at low transaction fees. 12. Are their social accounts active and how is the community engagement: The engagement is top-level. 13. Who governs it: While no single entity controls Bitcoin, everyone can participate in the project by creating new businesses around it, helping develop it, mining it, running a node to help secure and relay transactions, documenting its history, using BTC, or simply talking about it.

    BTC holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

    In essence, the establishment of Bitcoin is to ensure that it would be a currency that could not be controlled by any government or financial institution.”

    Bitcoin doesn’t have a CEO, a headquarters, or a company that’s in charge of it. It’s a protocol consisting of users running software that conforms to the protocol’s rules. Developers across the globe are constantly working on improvements to the Bitcoin protocol, with the most prominent project being the Bitcoin Core client. Any modifications to the protocol have to be accepted by participants in the Bitcoin network – if a proposed change is unpopular, miners and node operators simply won’t run the proposed new version of the software. Even Satoshi Nakamoto, the inventor of Bitcoin, would not be able to force through any changes to the Bitcoin protocol if there was a lack of consensus amongst participants in the Bitcoin network. While nobody is in charge of Bitcoin, several individuals have made significant contributions to the project over the years. This includes Gavin Andresen, who served as Bitcoin’s lead developer starting in 2011. Andresen also founded the Bitcoin Foundation in 2012 to support the development of Bitcoin. Other developers like Wladimir J. van der Laan, Marco Falke, Pieter Wuille, Michael Ford, and Jonas Schnelli are listed among the top contributors on the Bitcoin Core GitHub. 14. Does someone control a large supply of it and Who are the top holders: A few years ago, the idea that a publicly traded company might hold Bitcoin on its balance sheets seemed highly laughable. The flagship cryptocurrency was considered to be too volatile to be adopted by any serious business. Many top investors, including Warren Buffett, labeled the asset a “bubble waiting to pop.” This negative sentiment appears to have been broken, with several corporate behemoths buying up Bitcoin since 2020. In particular, business intelligence firm MicroStrategy set the pace after it bought $425 million worth of Bitcoin in August and September 2020. Since then, many others have followed suit, including EV manufacturer Tesla. MicroStrategy has by far the largest Bitcoin portfolio held by any publicly traded company. The business analytics platform has adopted Bitcoin as its primary reserve asset, aggressively buying the cryptocurrency through 2021 and 2022. As of August 30, 2022, the company had 129,699 Bitcoin in its reserve, equivalent to just over $2.5 billion. Other top corporate holders include Marathon Digital Holdings, with 10,054 BTC, Coinbase (9,000), Square Inc. (8,027), and Hut 8 Mining Corp. (7,078). 15. Who are the top competitors: There is no near-close competitor to Bitcoin, however, there are some other projects at the top of the category along with Bitcoin such as: Litecoin Bitcoin Cash Bitcoin Satoshi Vision XRP … 16. What is its legal status: Its legal status may vary in different countries, bitcoin transactions are allowed in Japan, Canada, the USA, Singapore, some countries of Europe, Australia, etc.

    Bitcoin is becoming more political by the day, particularly after El Salvador began accepting the currency as legal tender. The country's president, Nayib Bukele, announced and implemented the decision almost unilaterally, dismissing criticism from his citizens, the Bank of England, the IMF, Vitalik Buterin, and many others. Since the Bitcoin legal tender law was passed in September 2021, Bukele has also announced plans to build Bitcoin City, a city fully based on mining Bitcoin with geothermal energy from volcanoes. Countries like Mexico, Russia, and others have been rumored to be candidates also to accept Bitcoin as legal tender, but thus far, El Salvador stands alone. On the flip side, countries like China have moved to heavily clamp down on Bitcoin mining and trading activities. In May 2021, the Chinese government declared that all crypto-related transactions are illegal. This was followed by a heavy crackdown on Bitcoin mining operations, forcing many crypto-related businesses to flee to friendlier regions. Surprisingly, the anti-crypto stance of the Chinese government has done little to stop the industry. According to data from the University of Cambridge, China is now the second-biggest contributor to Bitcoin's global hash rate, only behind the United States. 17. How have they handled past incidents and security breaches: Bitcoin has a proven track record of security. Despite occasional hacking incidents on cryptocurrency exchanges, the Bitcoin blockchain has remained secure and has never been hacked.

    In August 2010, a vulnerability was discovered in the network that allowed for an overflow in the value of transactions. This led to a user being able to create 184 billion BTC, which, at the time, was over 49,000 times the total number of BTC in existence. Developers fixed the issue by updating the Bitcoin software to a new version with a limit on the maximum value of a single transaction. Additionally, extra coins created during the incident were reverted. 18. What are the potential risks and their likeliness: While it is resilient, there are still some risks associated with the system such as the 51% attack where miners control more than 51% of the total computation power and also there can be security risks outside of the control of the Bitcoin protocol. 19. Are there any major events upcoming: Bitcoin Halving sometimes also known as the Halvening, refers to the reduction of block reward to miners by half. This is part of its built-in monetary policy, in which after approximately 4 years, the mining reward will be halved towards the limited capped supply of 21 million Bitcoin. Once 21 million Bitcoins have been minted, there will no longer be a new supply of it rewarded to miners, and miners are expected to earn revenue by way of transaction fees. This is seen as a significant event for a couple of reasons. Firstly, traders may speculate on the possible scarcity of Bitcoin making way for high volatility. Secondly, as miners' rewards will be reduced, we may see some miners exiting the market as they could not sustain the lower profitability. This in turn may cause the hashing rate to reduce and mining pools may consolidate. Due to this, the Bitcoin network may be a little unstable during the halving period.

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