Bitcoin (BTC)
Definition
The first and largest cryptocurrency by market cap, created in 2009 by pseudonymous developer Satoshi Nakamoto as a peer-to-peer electronic cash system with a fixed supply of 21 million coins.
Bitcoin is the original cryptocurrency and remains the dominant digital asset by market capitalization. Launched in January 2009 following the publication of Satoshi Nakamoto's whitepaper, Bitcoin introduced the concept of decentralized digital money secured by proof-of-work consensus without requiring trust in any central authority.
Bitcoin's key properties include a fixed supply of 21 million coins (creating digital scarcity), a predictable emission schedule through halvings, a fully open and transparent ledger, and censorship-resistant transactions that can be sent anywhere in the world without intermediaries.
Bitcoin has evolved from a niche experiment to a globally recognized asset class. Major milestones include exceeding $1 trillion market cap, adoption as legal tender in El Salvador, approval of spot Bitcoin ETFs in the US in 2024, and growing adoption by institutions, corporations, and sovereign wealth funds.
For portfolio tracking, Bitcoin presents unique considerations. It trades 24/7 across hundreds of exchanges with slight price variations. It can be held on exchanges, in hardware wallets, or in software wallets. Cost basis tracking requires consolidating data from all these sources, especially for early holders who may have acquired Bitcoin across many platforms.
Bitcoin's narrative has shifted over time from "digital cash" to "digital gold" — a store of value and inflation hedge. Its fixed supply contrasts with fiat currencies that can be printed without limit, attracting investors seeking an alternative to traditional monetary systems.
Where this appears in Clarity
Clarity automatically tracks and calculates these concepts across your connected accounts.
Related Terms
Frequently Asked Questions
How is Bitcoin different from other cryptocurrencies?
Bitcoin has the longest track record, largest market cap, most decentralized network, and strongest brand recognition. It uses proof-of-work rather than proof-of-stake, has a fixed supply of 21 million coins, and is primarily viewed as a store of value rather than a platform for applications.
How do I track Bitcoin across multiple wallets?
Portfolio tracking tools like Clarity let you connect multiple exchanges and wallet addresses to see your total Bitcoin holdings in one place. This includes exchange accounts via API, hardware wallet addresses via blockchain tracking, and manual entries for offline holdings.