📖 Bitcoin Glossary

A digital currency with no central bank or government control, invented in 2009. There will only ever be 21 million bitcoin in existence.

The smallest unit of bitcoin. One bitcoin = 100,000,000 satoshis. Named after Bitcoin's mysterious creator, Satoshi Nakamoto.

A chain of blocks, each containing a list of transactions. Every block is linked to the previous one, making it impossible to change history without everyone noticing.

The process of using powerful computers to solve complex maths puzzles. Miners who solve the puzzle first add the next block and earn new bitcoin as a reward.

A secret password (a very long number) that gives you access to your bitcoin. NEVER share this with anyone. Lose it, lose your bitcoin.

Like your email address for bitcoin. You can share this with others so they can send you bitcoin. It's safe to share publicly.

An app or device that stores your private keys and lets you send/receive bitcoin. A wallet doesn't actually "hold" bitcoin — it holds the keys that prove ownership.

A computer running the Bitcoin software. Nodes store a full copy of the blockchain and verify transactions. Anyone can run one!

Every ~4 years, the reward miners receive for adding a block is cut in half. This makes bitcoin increasingly scarce over time. The last bitcoin will be mined around 2140.

A second layer built on top of Bitcoin that allows instant, tiny payments for almost zero fees. Think of it like Bitcoin's "fast lane."

Government-issued money like dollars, pounds, or euros. Unlike bitcoin, governments can print unlimited amounts, which reduces its value over time (inflation).

A model created by Plan B that measures how scarce an asset is by comparing its existing supply to how much new supply is created each year. Bitcoin has a very high S2F ratio.

12 or 24 words that can recover your entire Bitcoin wallet. Write these down, store them safely offline, and NEVER share them with anyone.

Sending bitcoin directly from one person to another without a bank or middleman in between. Like handing cash to someone, but digitally, anywhere in the world.