Bitcoin (BTC) Profile

Bitcoin Token Profile (PDF)

Bitcoin was created in 2009 by a programmer, or a team of programmers, under the name Satoshi Nakamoto. It was built upon several technologies created in the 20th century, namely Elliptic-curve cryptography, Reusable Proof-of-Work and BitGold. It was the first digital token to effectively implement a distributed ledger that economically incentivizes participation. The value of Bitcoin is based on the principal of Digital Scarcity, as the underlying technology caps the maximum supply of tokens at 21M. Until that cap is reached, Bitcoin’s supply is inflationary as the network’s maintainers, also known as miners, are rewarded for validating and confirming transactions with newly minted bitcoins. One bitcoin can be divided into one million fractions, or Satoshis, and the effects of supply deflation can be eased by the token’s high divisibility. Bitcoin is the largest digital token by market capitalization and its user base has grown significantly over the past two years. Although it was initially intended for peer-to-peer transactions, its purpose has changed. As Bitcoin’s popularity increased, so too did transaction fees and confirmation times. For this reason, other digital tokens are preferred for P2P transactions and bitcoin now serves as a store of value or, as some refer to, digital gold. It also serves as a gateway to the digital token economy and the overwhelming majority of digital tokens can be exchanged for bitcoin. Many other popular digital currencies were forked from the Bitcoin protocol, including Dash, Bitcoin Classic, Bitcoin Dark, and, more recently, Bitcoin Cash.