$BTC ### **Bitcoin (BTC) Summary**
Bitcoin is the world's first and most dominant **decentralized digital currency**, created in 2009 by the pseudonymous **Satoshi Nakamoto**. It operates on a **peer-to-peer blockchain network**, enabling secure, censorship-resistant transactions without intermediaries like banks.
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### **Key Features of Bitcoin**
1. **Decentralization**
- No central authority (unlike fiat currencies).
- Maintained by a global network of miners and nodes.
2. **Fixed Supply (Scarcity)**
- Only **21 million BTC** will ever exist (~19.7M mined so far).
- New coins are issued via **block rewards** (halving every 4 years).
3. **Proof-of-Work (PoW) Consensus**
- Miners compete to solve cryptographic puzzles to validate transactions.
- Criticized for high energy use but praised for security.
4. **Store of Value ("Digital Gold")**
- Many investors view BTC as a hedge against inflation and economic instability.
5. **Pseudonymity (Not Full Anonymity)**
- Transactions are public but linked to wallet addresses, not identities.
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### **Bitcoin’s Role in Crypto**
- **Market Dominance**: ~50% of total crypto market cap.
- **Institutional Adoption**: Spot Bitcoin ETFs (e.g., BlackRock, Fidelity), corporate treasuries (MicroStrategy, Tesla).
- **Macro Sensitivity**: Often reacts to Fed policies, USD strength, and risk-on/risk-off markets.
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### **Recent Developments (2024)**
- **Fourth Halving (April 2024)**: Block reward dropped to **3.125 BTC**, reducing new supply.
- **ETF Inflows**: U.S. spot Bitcoin ETFs hold over **$50B+ in BTC**.
- **Layer 2 Solutions**: Growth of Lightning Network for faster/cheaper payments.
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### **Challenges & Criticisms**
- **Volatility**: Sharp price swings deter everyday use as currency.
- **Scalability**: Base layer handles ~7 transactions/second (vs. Visa’s 24,000).
- **Regulatory Uncertainty**: SEC lawsuits, mining bans (e.g., China tax policies)
