A weekly newsletter decoding crypto, blockchain and the entire ecosystem.
By Rohas Nagpal
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A person/group holding a large amount of bitcoin is called a whale.
Ashdraking is the complete loss of a crypto investor's capital as a result of shorting bitcoin.
In January 2012, bitcoin made its television debut on “The Good Wife”.
Bitcoin’s market cap surpassed US $1 trillion for the first time ever on 19 February 2021.
Before we dive deeper, let's check out the latest news from the crypto universe.
The US Securities and Exchange Commission has threatened to sue crypto exchange Coinbase over its proposed stablecoin lending program.
The Alonzo update of the Cardano network has gone live. This enables smart contracts to be created and deployed on the network's mainnet.
Ukraine has made cryptocurrency legal within the country and has allowed crypto exchanges to officially operate in the country.
1. What is Bitcoin (BTC)?
Bitcoin is the world's first and largest cryptocurrency. The word "blockchain" is derived from its whitepaper.
Bitcoin earned a lot of notoriety primarily because of its use by members of the now shut-down Silk Road - an illegal online marketplace that facilitated the sale of drugs worth hundreds of millions of dollars, guns, stolen financial information, counterfeit documents and more. All Silk Road transactions were conducted exclusively in bitcoin.
The first Bitcoin real-world transaction took place on 22nd May 2010 and involved 10,000 bitcoins being exchanged for $25 worth of pizza.
Bitcoin was hacked in August 2010 when some hackers exploited a vulnerability and generated billions of bitcoins which were sent to two addresses on the network. The vulnerability was fixed, the transaction was erased from the transaction log and the Bitcoin network was forked to an updated version.
Bitcoin isn't 100% anonymous. All its transactions are recorded on its publicly available Blockchain.
Bitcoin’s total supply is limited by its software to 21 million. New coins are issued as rewards to "miners". On launch, the reward was 50 bitcoins per block: this number gets halved with every 210,000 new blocks mined — which takes around 4 years. As of 2021, the block reward is 6.25 bitcoins.
Bitcoin has not been pre-mined, meaning that no coins have been distributed between the founders before Bitcoin became available to the public.
On 7 September 2021, El Salvador became the world’s first country to recognize Bitcoin as legal tender
Consensus mechanism: Proof of Work
As of 14 September, its core metrics are:
All-time high (7 September 2021)
All-time high (Apr 14, 2021)
All-time low (Jul 05, 2013)
Circulating Supply is the number of coins / tokens in public hands.
Total Supply is the number of coins / tokens created minus the number burned.
Maximum Supply is the maximum amount of this crypto that can ever exist
Marketcap & Volume metrics:
Fully Diluted Market Cap:
Volume / market cap ratio:
Market cap = Current Price x Circulating Supply
Fully Diluted Market Cap is the market cap if the maximum supply was in circulation
Volume (24h) is the fiat value of this crypto traded over the last 24 hours
Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos
Volume / market cap ratio = 24h Volume / Marketcap
Velocity = 24h Volume / Circulating Supply
Vladimir Club Cost is the cost of owning 1% of 1% (0.01%) of an asset's "eventual" supply
Last 30 days
Last 90 days
Last 1 year
Last 3 years
Volatility measures the annualized standard deviation of daily returns
Sharpe Ratio measures the excess return for a given level of risk