What is Bitcoin and how does it work?

The history of Bitcoin

Bitcoin was officially launched on January 3, 2009, by an unknown person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin (BTC, standing for "bit", a unit of information and "coin") is the first and most popular cryptocurrency in the world. Being the world's first decentralized cryptocurrency, Bitcoin has transformed the way we perceive and use money.

A cryptocurrency is an asset that is not issued by the Central Bank or other monetary regulators of a country. The issue and accounting of cryptocurrencies is carried out using a decentralized system of algorithms.

Cryptocurrencies, including Bitcoin, operate based on blockchain, a technology for encrypting and storing data distributed over a variety of computers connected to a common network. The blockchain is a database that reflects all the performed operations. Learn more about blockchain bridges and how to move your crypto assets from one blockchain to another here.

In October 2008, Satoshi Nakamoto published an article in which he justified the idea of using blockchain technology to create a decentralized and independent payment system with a limited supply of assets - Bitcoin.

Nakamoto noted that the development of Bitcoin began in 2007 and ended in 2009. As already mentioned on January 3, 2009, the first block was generated and the first 50 Bitcoins were released.

The first Bitcoin transfer operation also took place in January 2009: Satoshi Nakamoto sent 10 Bitcoins to American programmer Hal Finney.
The first exchange of Bitcoins for real currency took place in September 2009.
The first exchange for goods happened in May 2010: American programmer Laszlo Hanyecz paid 10,000 BTC for two pizzas.

What is Bitcoin?

So, what is Bitcoin? It is a decentralized digital currency - a virtual asset for making online payments, investments, and storing savings.

The distinctive characteristics of Bitcoin include:

Decentralization. Cryptocurrency does not depend on any government or bank. The issue and recording of transactions take place on the blockchain network, a system designed to encrypt and store data distributed across various computers (PCs) connected to a common network.
Transparency. Thanks to this transparency, transactions are traceable and you can think of the blockchain as a kind of open database full of Bitcoin transactions. Although the identity of the wallet owners is hidden, all Bitcoin transfers between addresses are visible on the network.
Bitcoin’s limited supply. The maximum supply of Bitcoins is limited to 21 million to ensure scarcity and prevent inflation.

How does Bitcoin differ from real money and other cryptocurrencies?

Bitcoin Addresses

Each Bitcoin network user is assigned a unique identifier or private key - a sequence of 26-36 characters consisting of numbers and letters. These addresses are used to receive and send coins, and transactions associated with a specific wallet can be tracked through a blockchain browser.

3 formats of Bitcoin addresses are characterized by high security and protection against typos (Bech32), reduced transaction fees (P2SH, Bech32), or backward compatibility with old Bitcoin software (Legacy).

Commissions

Commissions on the network do not depend on the amount of the transaction but are determined by the level of competition in mining. Higher fees (for example, 20-50 Satoshi per byte) allow you to speed up transaction processing for almost instant currency receipt.

Transaction time

Transferring Bitcoins between wallets can take from 10 minutes to several hours. A larger number of confirmations from miners (at least 2, optimally 6) ensures the irreversibility of transactions. Each transaction is public and can be studied using blockchain browsers, tools for analyzing transactions on the Bitcoin network.

How to store and use Bitcoin

To store Bitcoins, as well as other cryptocurrencies, and perform transactions with them, crypto wallets are used - special software (or hardware). Access control to the cryptocurrency is carried out using the blockchain platform. To confirm the right to manage funds, you must have special keys - public and private.

The public key is the wallet address. This is a set of characters that a person can send to other people.
The private key can be compared with the password or PIN code of the card.
The private key allows you to gain full control over the wallet and the cryptocurrency that is stored on it. It should never be communicated to other people.

Crypto wallets come in two types: hot (provide online storage) and cold (provide offline storage of cryptocurrencies).

You can transfer Bitcoins using the recipient's Bitcoin wallet number. After a certain time (usually about 10 minutes), the operation will be completed. Information about the operation will be available to all users, but in an impersonal form: they will see only the wallet numbers and the transfer amount.

What kind of Bitcoin wallets are there and how to choose them

Before you start using Bitcoin, you need to decide exactly where you will transfer the funds you receive and where to store them. Each user must create a special wallet for digital currency. Bitcoin wallets can be divided into several types:

Software wallets. They are installed on a computer or mobile phone in the form of applications. Software wallets provide full control of the owner over the money, provided that the cryptographic keys are securely stored.
Online wallets. Here, user funds are stored on remote servers. Such wallets are quite easy to use, but there is a risk of hacking or account blocking.
Hardware wallets. Those are special devices with a high level of protection that are connected via a USB port. They are convenient for long-term investments of large amounts.
Paper wallets. The keys are stored in printed form. They guarantee the anonymity of the user and eliminate the risk of hacker attacks. They are reliable under the condition of safe physical storage.

Software wallets and online wallets from trusted creators will be an ideal choice for a novice investor.

Instructions for creating a Bitcoin wallet

1. Select a cryptocurrency wallet. It is better to focus on popular options like Exodus, Atomic or Coinomi as they are easy to use.

2. Download and install the wallet app on your computer or smartphone. For online wallets, all you need is to register.

3. Create a strong password, following the recommendations in the program. It is also possible to set up two-factor authentication for increased security.

4. Save and securely archive the secret phrases and keys provided by the wallet. You will not be able to restore access to your account without them.

Tips for storing Bitcoins

Use only proven services with positive reviews and a high-reliability rating.
Be sure to enable two-factor authentication where available.
Do not store all funds in online wallets, transfer large amounts to hardware cold offline media.
Distribute coins between multiple wallets for different purposes and to increase security.
Regularly update the software of crypto wallets and operating systems on your devices to close some software vulnerabilities.
Use hardware wallets if possible. They provide enhanced protection of private keys and personal data.

Price history of Bitcoin and how new Bitcoins appear on the market?

The initial price of Bitcoin in October 2009 was $ 0.0008, in 2011 the exchange rate rose to $ 1. On September 1, 2023, 1 BTC could be bought or sold for $25,979. The cost of one Bitcoin coin on the cryptocurrency market on June 25, 2024, is $ 50,865.

Fiat money can be backed by another currency, gold, or other assets. Bitcoin, like other cryptocurrencies (with the exception of stablecoins), has no collateral. Nevertheless, the value of Bitcoin is maintained due to the limited number of "coins" in circulation, and the difficulty of issuing new and active investments in this cryptocurrency of fiat funds.

As we already know Bitcoin has a limited issue: the total number of "coins" cannot exceed 21 million. The release of new Bitcoins is due to a special process – mining. During this process, a new block of operations appears in the blockchain, and virtual coins are issued.

The issuance and accounting of cryptocurrencies are carried out using a decentralized system of algorithms. Decentralization means that information is stored simultaneously on all network devices, and there is no single data management center. To maintain the integrity and stability of the network, it is necessary to have many participants.

Each cryptocurrency uses its cryptographic encryption algorithm. At the same time, for the safe operation of the blockchain, the release process is controlled using consensus-building algorithms. The two most popular consensus algorithms are Proof-of-Work, or PoW, and Proof-of-stake, or PoS. The PoW algorithm requires cryptocurrency miners to solve complex mathematical problems to verify and record transactions in the blockchain. The PoS algorithm assumes that users store cryptocurrency and thereby ensure the operation of the blockchain.

Bitcoin works based on the Proof of Work (PoW) algorithm. The cryptocurrency miner, who was the first to achieve the solution of the task, gets the opportunity to write a block with operations to the blockchain. For this, he receives a reward from the system in the form of new "coins", as well as a commission for transactions that he recorded in the blockchain.

How to mine Bitcoin

As a result of cryptocurrency mining, a new block of transactions appears in the blockchain and virtual coins are issued. The issue of cryptocurrency requires certain computing power and significant energy costs, since in its process a cryptographic problem is solved on the network.

There are three main ways to mine cryptocurrency:

1. The cloud mining. That is the easiest way. Cloud mining requires a certain amount of computing power on a remote server. (The higher this figure, the more powerful the equipment for issuing cryptocurrencies). At the same time, fraudulent projects can function under the cloud method.

2. Solo mining. With the solo release of cryptocurrency, the cryptocurrency miner carries out the entire process of mining cryptocurrency independently, as well as independently buys, assembles, and configures the necessary equipment. Currently, the algorithms for issuing cryptocurrencies are becoming more complicated, and more and more powerful equipment is needed to solve the problem, so now few people are engaged in this method of mining, and most prefer team interaction - mining cryptocurrencies in a pool.

3. Pool mining. This method allows you to combine the capacities of a large number of equipment and, as a result, find solutions to problems faster. A pool is a server for collective mining, which sends tasks with simpler conditions to team members.

Types of farms for cryptocurrency mining

A cryptocurrency creation farm is a group of devices combined into one system that is capable of performing calculations for cryptocurrency mining. In a broad sense, such a farm can be called any mechanism for extracting digital currency.

Professional cryptocurrency miners use special equipment- rigs and farms to create cryptocurrencies instead of an ordinary computer. A mining rig is a device consisting of several pieces of computer equipment (video cards, motherboard, power supply, etc.) used for mining cryptocurrency. Several mining rigs are combined into a farm.

Among professional cryptocurrency miners, it is customary to distinguish three main types of farms:

Type 1: Mining on video cards (GPU). To mine cryptocurrency, as a rule, you need several video cards, at least 4-5. The advantage of such farms is that video adapters are easily reconfigured for cryptocurrency creation algorithms, while they are covered by the manufacturer's warranty, which reduces costs. This type of farm has almost exhausted itself for Bitcoin mining but is used for mining other cryptocurrencies.
Type 2: FPGA modules. FPGA modules ("field-programmable gate array") are programmable devices designed specifically for cryptocurrency mining. Such modules can be manually adjusted to perform a specific task. The performance of FPGA modules is almost the same as that of video adapters, but they do not need to be cooled.
Type 3: ASIC Mining. In such farms, special chips are used to solve problems, not video adapters. ASIC chips ("application-specific integrated circuit") are designed specifically for mining cryptocurrency so that the farm consumes less electricity and its productivity increases.

You do not need to assemble such farms yourself, but their disadvantage is regular overheating, which requires equipment to cool the chips. Another disadvantage is the high noise level, which makes it problematic to use such farms in domestic conditions.

Alternative ways of mining cryptocurrencies

Among the alternative ways of mining cryptocurrencies are:

Hard drive mining. There are blockchain projects that allow you to use a computer hard drive (HDD) for mining cryptocurrency. With this method of extraction, free space on the hard disk is used. To create a cryptocurrency, you need a computer with a large hard disk (several TB) and special software.
Computer processor. There are also algorithms that allow you to use a computer's central processor to mine cryptocurrencies.
Browser-based mining. You can mine some cryptocurrencies through a browser. The browser-based release uses the computing power of website visitors through a scripting language. This allows cryptocurrency miners to significantly reduce the cost of equipment and electricity. However with this method of mining, there is a risk of encountering scammers or hackers.
Network node content. In some blockchain algorithms, the main nodes of the network with special powers are required to ensure the operation of the system. In fact, the content of the network nodes is not cryptocurrency mining, but an accompanying service, a way of investing in cryptocurrency.

Risks and problems associated with Bitcoin mining

When mining Bitcoin and other cryptocurrencies, it is important to keep in mind the risks of this activity. The main ones are as follows:

High volatility. In this case, it is worth waiting for the moment when the cryptocurrency starts to grow again.
High cost of electricity. The mining process is usually extremely energy-intensive, and large energy bills can significantly reduce income.
The risk of encountering fraudulent projects and scammers. Read about the most common crypto scams and how to identify them in this article.
Cryptocurrencies are not fully regulated. At the same time, they are highly dependent on stock market movements. There is always a risk of regulatory pressure or a significant drop against the background of a sagging financial market.
The probability of equipment failure and a potentially long payback period. It is also worth laying additional reserves for unforeseen situations, for example, equipment breakdowns.

The use of a huge amount of electricity when issuing cryptocurrencies negatively affects the environment, so in the future, cryptocurrency miners will switch to "green" energy sources.

The Bitcoin halving

BTC is mined by miners - they provide the cryptocurrency network with the necessary computing power to process transactions. As a reward, miners receive Bitcoins - this is how the issue takes place.

Many blockchain networks have a halving procedure. Halving is the process of reducing the rate of generation of new units of cryptocurrency, which entails a decrease in the amount of remuneration for the extracted block. The main goal of halving is to curb cryptocurrency inflation by reducing the issue of new coins.

Every 210 thousand mined blocks (approximately once every 4 years), halving takes place in the BTC network - reducing the rate of emission and payments to miners by exactly two times. After the 4th halving in 2024, the reward is reduced to 3.125 BTC.

19.3+ million Bitcoins have already been mined, while statistics indicate a constant increase in the number of crypto users. Halving at the same time reduces the number of coins available on the market. High demand and lack of supply are pushing the BTC rate up.

In the algorithm of the Bitcoin network, halving is provided every four years, every 210 thousand blocks -until the end of the issue of this cryptocurrency (presumably in 2140). The first halving took place on the Bitcoin network on November 28, 2012. The reward for the found block decreased from the initial 50 BTC to 25 BTC.

Halving, as a rule, stimulates the growth of the price of cryptocurrencies, for example, in a few months after the first halving, the Bitcoin exchange rate increased from $ 12 to $ 1 thousand. After the second halving (July 9, 2016), the exchange rate jumped from $ 670 to $ 20,000 in a few months. After the third halving (May 11, 2020), the value of Bitcoin increased from $ 8,700 to $63,500 (April 2021).

The fourth, halving of Bitcoin was in April 20th, 2024, after which the reward for the extracted block will be reduced to 3,125 BTC. Bitcoin price forecasts for this year are mostly positive. Standard Chartered Bank believes that by the end of 2024, Bitcoin will be worth $ 150,000. There are also those who are not sure that Bitcoin will continue to grow, but they do not name price benchmarks. Find out more about what to expect from the fourth Bitcoin halving in our article.

The advantages and disadvantages of Bitcoin

Bitcoin has several advantages and disadvantages.

Advantages:

Security and anonymity.
All information about transactions is publicly available, while the data of the sender and recipient are classified.
Open source and reliable.
The source code of Bitcoin is publicly available, which is protected at the same time.
Low entry threshold for investments.

To invest in Bitcoin, it is not necessary to buy it in its entirety, you can purchase satoshi (SATS), into which BTC is divided (1 BTC is equal to 100 million SATS). The minimum transaction level can be set by the exchange and the exchanger.

Disadvantages:

Low speed of network operation and operations.
The speed of transactions is not enough for Bitcoin to replace fiat money. The problem is partially solved by the Lightning Network add-on.
The absence of an official issuer.
Regulators cannot make certain claims or demands against the issuer, as the market is unregulated.
Strong exchange rate variability.
Bitcoin is a market instrument that is subject to strong volatility.
The risk of market manipulation by large market makers.
Those who issue and mine Bitcoin can influence the exchange rate in various ways.

Where to buy and sell Bitcoin

That is possible to buy or sell Bitcoin in one of three ways.

1. On the crypto exchange. The investor needs to choose an exchange platform and register on it. You can store the purchased cryptocurrency both on the exchange itself and in a separate wallet.

2. On the exchange platform. There are special services that allow an investor to buy and sell Bitcoin, but they need to be chosen with caution, using trusted sources of information.

3. With the help of a direct transaction. The investor can directly negotiate with the bitcoin holder about the purchase of "coins". However, such transactions should be approached with even greater caution than using exchange platforms, since fraudulent projects are common on the market.

How to send and receive Bitcoin

Sending a BTC is similar to a transaction between bank accounts. When transferring, the transaction is reflected in 3 records:

Login is the address of the sender of the funds.
Quantity - the number of Bitcoins transferred from one user to another.
Output is the recipient's ID.

Transactions become part of the public registry on the blockchain after it is verified by miners in accordance with the consensus rules. This is part of the Bitcoin protocol. The network is available 24/7, and transactions are processed every 10 minutes.

The ID identifies the source of the payment. The wallet software generates it automatically when the user registers. To send coins, you additionally need a password or a private key. They are strictly confidential and cannot be shared.

To receive coins, the user must copy the address of his wallet and transfer it to the sender. If you need to transfer BTC, then you must specify the ID of the party to which the coins are transferred inside the account.

There are 3 formats used for Bitcoin identifiers that start with different numbers and symbols:

P2PKH. Always starts with 1. For example, 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2.
P2SH. The first digit is a number. An example is 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy.
Bech32. This identifier has bc1 characters at the beginning. An example is bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq.

How to transfer Bitcoins to another wallet

Operations for sending coins do not cause difficulties and take a little time. To transfer Bitcoin from one wallet to another, follow these steps:

1. Open the application.

2. Go to the "Send" page.

3. Copy and paste the address to which the BTC transfer should be made. You can scan the QR code if such a feature is available.

4. Enter the transfer amount.

5. Verify and then confirm the transaction.

Users are given the opportunity to speed up the transfer. To do this, select the "Priority commission" option.

How to pay with Bitcoin

Bitcoins can be used to pay for more and more goods and services of various companies: from purchases in online stores and subscriptions to various services to travel, tickets to sports events and ordering in cafes. Crypto payments are secure, anonymous and reliable, and are not subject to sanctions restrictions.

Cryptocurrencies are increasingly being used to make transactions, and it is Bitcoin payments that are currently one of the most common methods of crypto payment. More than 65% of script users owned Bitcoin in 2022. According to experts, the cryptocurrency payments market will continue to grow and reach $3788 billion by 2031.

Payment for goods with Bitcoins is profitable and convenient for both sides of the transaction for several reasons:

High level of fraud protection. Payment in cryptocurrency involves the use of blockchain technology, within which the payment cannot be canceled, changed or forged.
Anonymity. The decentralization of Bitcoin ensures the confidentiality of both parties – the leakage of personal data is impossible.
The ability to conduct international transactions even under sanctions. Decentralization implies a lack of control by banks and government organizations.
Low commission. Its size depends on the "weight" of the transaction, not its amount or the location of the parties to the transaction. This makes crypto payments in most cases more profitable than fiat transactions - especially for international transfers.
Accessibility. Bitcoin remains the most popular cryptocurrency, the payment of which is available to customers of a wide range of companies.

Cryptocurrency can be used to pay for the following categories:

Entertainment/educational Internet platforms and video games. For example, payment via bitcoin is available to users of the Twitch streaming service and customers of the Xbox store.
E-commerce services. Bitcoin is accepted by such large eCommerce platforms as WordPress and Shopify.
Shopping in online and offline stores. Bitcoin payment is available to customers of such giants as Tesla and Microsoft. A number of brands also accept cryptocurrency: Balenciaga, Gucci, as well as the online store Home Depot.
Food and drinks. From fast food to coffee: Bitcoin payments are available to visitors of Burger King, KFC, Starbucks. You can also purchase Coca-Cola products in specialized vending machines for cryptocurrency. There are also cafes that accept payments only in cryptocurrency - for example, Czech Bitcoin Coffee.
Travel. You can use cryptocurrency to pay for everything for a trip: from tickets and hotels to tours and entertainment programs. Bitcoin owners have access to services such as Bitcoin. Travel, airBaltic, CheapAir and Surf Air.
Event tickets. For example, at the Dallas Mavericks games, payment using bitcoin can be used not only to buy tickets, but also to purchase various goods at the stadium.
Personal transport. From electric cars to airplanes and yachts: Bitcoin is accepted by companies such as Denison Yachting, SkyCraft and the online store Alza, which offers customers Tesla electric vehicles.
Real estate. This payment method is available to clients of companies such as Fäm Properties (China), Gafisa (Brazil), Status Property, Gold Ahiskali, Ataberk Estate (Turkey).

Impact on the Financial World

Cryptocurrencies are starting to play an increasingly important role in the traditional economy. First, they provide new opportunities for financial transactions and payments, especially in the context of global transactions.

Traditional banking systems can be slow and expensive when transferring between different countries, while cryptocurrencies allow you to send money around the world quickly and cheaply. In addition, cryptocurrencies open the door to financial inclusion.

Millions of people around the world do not have access to traditional banking services, but can use cryptocurrencies to store and transfer funds. This allows them to participate in the global economy and gain access to financial opportunities that were previously unavailable.

With the growing popularity of cryptocurrencies, the need for legal regulation is also increasing. Governments and regulators around the world are closely monitoring these new assets to protect the interests of investors and prevent illegal activities. Developing effective regulation is a difficult task, as it is necessary to balance innovation and security.

As for forecasts for the future, cryptocurrencies continue to develop and change the global economy. Their application will expand in various industries such as finance, technology, healthcare and others. Perhaps we will also see the emergence of digital versions of government currencies that will coexist with cryptocurrencies.

Cryptocurrencies are an integral part of the modern economy, and their role and influence continue to grow. They provide new opportunities for financial transactions, promote financial inclusion, and change the traditional economy. See more information about the crypto trading strategies explained for beginners here.

Bitcoin ETF

ETF is an abbreviation of the exchange-traded fund. A company buys one or more assets into a fund and allows investors to earn on exchange rate changes. To do this, they buy shares of the fund.

A Bitcoin ETF is an exchange-traded fund that includes only BTC. By buying shares of such a fund, investors can earn on the growth of the cryptocurrency exchange rate. Here is the article about what are Bitcoin ETFs and why they matter.

ETFs are traded on exchanges – buying and selling them is very similar to investing in stocks, but there are differences. If a stock is always a security of one company, then an ETF may consist of a basket of assets. And an exchange-traded fund allows you to bypass direct investments since the investor invests not in an asset, but in an ETF.

To purchase an ETF share, you need a brokerage account. Opening conditions may vary from country to country. It is usually enough to provide the broker with an identity document. After that, all that remains is to find the ticker (short designation of the investment instrument) in the list and specify the share to buy.

Why the Bitcoin ETF has become the focus of attention

Cryptocurrency is not legal everywhere. Companies that would like to invest part of their budget in digital assets and earn money cannot do this simply because it is illegal.

In countries where cryptocurrency is legal, there is another problem – a conservative investment strategy. For example, in any public organization (an organization whose shares are traded on the stock exchange), all investment decisions are most often made by the Board of Directors. And if it does not consist of millennials (the main target audience of the crypto industry), the probability of buying cryptocurrencies with free money is close to zero.

Cryptocurrency-based ETFs solve both problems:

A stock-traded fund is a completely legal product. Even if the ETF consists of cryptocurrencies, formally the investor invests money not in coins, but in the fund itself, which does not contradict the law.
Investing in ETFs is common for large companies. Therefore, cryptocurrency-based funds traded on the stock exchange can be an excellent solution for corporations with conservative investment strategies.

In the context of Bitcoin, ETFs allow investors to monitor the movement of its price without having the cryptocurrency itself in their hands. Instead of dealing with cryptocurrency exchanges and wallets on their own, an investor can buy Bitcoin ETF shares through regular brokerage accounts. It is expected that it is the convenience of access that can bridge the gap between the traditional financial and cryptocurrency markets.

In January 2024, the U.S. Securities and Exchange Commission (SEC) finally approved all 11 applications to launch spot bitcoin ETFs. The crypto community has been waiting for this for 13 years. Until January 2024, there were only Bitcoin futures ETFs on the American market. They were launched in 2021. Bitcoin futures ETFs are needed to speculate on asset price forecasts. To do this, investors enter into a contract to buy/sell cryptocurrencies at a predetermined price on a certain date and time. If you make a mistake with the forecast, you will have to close the deal at a loss.

Spot Bitcoin ETFs are needed so that investors can earn on the growth of cryptocurrencies without direct purchase. Instead, they buy shares of an exchange-traded fund (ETF), which is linked to the exchange rate of the underlying asset - BTC. So, investors do not need to think about the security of storing cryptocurrencies, and large corporations and funds can legally earn on crypto.

The United States is the largest economy in the world, so the launch of cryptocurrency ETFs in America attracts the attention of investors from all countries. The instruments appeared on three American exchanges — NYSE Arca, Cboe BZX, and Nasdaq. Here is the full list:

1. NYSE Arca: Grayscale Bitcoin Trust (GXT), Bitwise Bitcoin ETC (BITS), Hash ex Bitcoin ETF (DEFI).

2. Cboe BZX: PARK 21Shares Bitcoin ETC (RC), Invesco Galaxy Bitcoin ETC (BT CO), Vanek Bitcoin Trust (HOST), WisdomTree Bitcoin Fund (BTCW), Fidelity Wise Origin Bitcoin Fund (FBTC), Franklin Bitcoin ETF (EZBC).

3. Nasdaq: iShares Bitcoin Trust (IBIT), Valkyrie Bitcoin Fund (BR).

On the first day after the launch of spot Bitcoin ETFs, trading volume reached $4.6 billion. For comparison, the trading volume of the first Bitcoin futures ETF in the United States on the first day amounted to $20 million (230 times less).

The spot Bitcoin ETF has been one of the most hotly anticipated instruments in the US. However, it is too early to draw any conclusions and get upset - the Bitcoin spot ETF market is only gaining momentum.

Many analysts give a positive Bitcoin forecast for 2024. If their assumptions are correct, then buying Bitcoin today can bring good income this year.

The Future of Bitcoin

The importance of Bitcoin in the cryptocurrency market will remain in the future, experts say. Bitcoin will continue to play the role of a tool for storing funds. Other popular cryptocurrencies are mainly used for other tasks: Ethereum is more like a blockchain ecosystem for various decentralized applications and smart contracts, and a number of other altcoins are insufficiently decentralized.

Conclusion

Now you know a lot about Bitcoin if not everything. And most importantly, you understand the principles of its operation and what is the value of this decentralized digital currency of the new generation. This opens up a lot of new opportunities that just didn't exist only a few years ago.