what is BTC

What Is Bitcoin?

Bitcoin is a blockchain-based digital currency that operates in a decentralized manner, independent of banks or any single company. Transactions are broadcast over a peer-to-peer (P2P) network, and the system uses Proof of Work (PoW) consensus to prevent tampering and double-spending. The total supply of Bitcoin is capped at 21 million coins.

Bitcoin’s value proposition centers on scarcity (fixed supply cap), censorship resistance (no centralized control), transparent settlement (publicly verifiable transactions), and global accessibility (anyone can participate). Ownership and transfers rely on a private key/public key system: the private key proves ownership, while the public key and address are used to receive funds.

What Are Bitcoin’s (BTC) Current Price, Market Cap, and Circulating Supply?

As of 2026-01-09 (according to provided market data), Bitcoin’s key metrics are as follows:

Click to view the BTC/USDT price

• Latest Price: $90,990.40 USD
• Circulating Supply: 19,973,353 BTC; Total Supply: 19,973,400 BTC; Max Supply: 21,000,000 BTC. Circulating supply is the amount currently available for trading, total supply is the number already issued, and max supply is the fixed upper limit.
• Circulating Market Cap: $1,817,387,655,360 USD; Fully Diluted Market Cap: $1,817,387,655,360 USD. Market cap = price × circulating supply; fully diluted market cap = price × max supply, reflecting valuation if all tokens were issued.
• Market Dominance: 55.82%, indicating Bitcoin’s leading position in the crypto market.

Click to view top cryptocurrency market dominance

• Price Change: 1 hour -0.15%, 24 hours 0.56%, 7 days 2.28%, 30 days -1.88%. Short-term volatility is common; always consider long-term trends and your risk tolerance.
• 24h Trading Volume: $934,364,527.853 USD, indicating recent liquidity and trading activity.

Who Created Bitcoin (BTC) and When?

Bitcoin was introduced in 2008 by an individual or group using the pseudonym Satoshi Nakamoto and launched in 2009 with the creation of the “genesis block.” In its early days, the community maintained the code and protocol via forums, eventually evolving into a global ecosystem of open-source developers and miners.

Key milestones include: the first real-world purchase (the famed “pizza transaction”), periodic “halvings” (every ~four years, block rewards are halved to control issuance rate), rapid global hashrate growth, and node expansion. These events have shaped Bitcoin’s narrative of scarcity and security.

How Does Bitcoin (BTC) Work?

Bitcoin records transactions on a blockchain: transactions are bundled into blocks, with a new block generated roughly every 10 minutes. Miners compete for block validation rights using Proof of Work (PoW), performing extensive computations to find a hash that meets network difficulty—ensuring network security and immutability.

Key terms explained:

• Block: A unit containing grouped transactions, linked in chronological order to form a chain.
• Difficulty & Hashrate: Difficulty determines how hard it is to find a new block; hashrate is the total network computational power. Both adjust dynamically to ensure stable block times.
• Transaction Fee: Paid by senders to incentivize miners for including transactions in blocks. Fees rise during network congestion.
• Private Key/Public Key/Address: The private key controls assets; the public key is derived from the private key; the address receives funds. Losing your private key means losing access to your assets.
• Confirmations: The number of blocks that follow a given block. More confirmations mean a transaction is harder to reverse.

What Can You Do With Bitcoin (BTC)?

Main use cases for Bitcoin include:

• Store of Value: Due to its fixed supply and global accessibility, some investors consider Bitcoin “digital gold.”
• Cross-border Transfers: Enables global transfers without traditional intermediaries—useful where legacy channels are limited.
• Payment Settlement: Accepted by some merchants and platforms as a means of payment, though usage varies by region due to price volatility and transaction fees.
• Financial Tools: Used as collateral or to participate in yield strategies within some crypto-financial products—always assess platform and compliance risks.

What Are the Major Risks and Regulatory Considerations for Bitcoin (BTC)?

Key risks and compliance points include:

• Price Volatility: Significant short-term price swings—assess your risk tolerance and position management.
• Regulation & Taxation: Regulations and tax requirements differ by country or region; these may impact trading, custody, or reporting obligations.
• Account & Exchange Risk: If storing assets on an exchange, prioritize account security (strong passwords, two-factor authentication) and platform safety.
• Private Key Management: Loss or compromise of your private key results in permanent loss of assets. Always back up your seed phrase securely.
• Network & Fees: Network congestion can cause delayed confirmations and higher fees.
• Scams & Phishing: Beware of fake websites, customer support scams, or airdrop traps—always verify domain names and signature details.

What Is the Long-term Value of Bitcoin (BTC)?

Long-term value is often discussed across three dimensions:

• Scarcity & Issuance Rules: A fixed cap of 21 million BTC and the halving mechanism slow issuance over time, reinforcing scarcity.

Click to view the latest BTC price

• Security & Censorship Resistance: PoW combined with global hashrate and distributed nodes provide robust security and resistance to centralized control.
• Network Effects & Recognition: High market dominance and broad holder base offer liquidity and recognition advantages; financial and payment applications further strengthen network effects.

None of these guarantee returns—realized value depends on technology development, regulatory landscape, and market adoption.

How Can I Buy and Safely Store Bitcoin (BTC) on Gate?

Step 1: Register for a Gate account and complete identity verification. Prepare valid ID documents and follow KYC instructions to comply with platform and local regulations.

Step 2: Deposit or buy with fiat. On Gate’s buy crypto page, you can purchase BTC directly with fiat currency or buy stablecoins like USDT first and then convert to BTC—pay attention to exchange rates and fees.

Step 3: Choose a spot trading pair and place an order. On the trading page, search for “BTC” and select spot pairs like BTC/USDT. Set a limit or market order, confirm quantity and price, then submit.

Step 4: Enable account security settings. Turn on two-factor authentication (2FA), withdrawal whitelist, and anti-phishing codes to minimize account theft risks.

Step 5: Choose your custody method. For short-term trading, you may keep BTC in your Gate account wallet (custodial). For long-term holding, withdraw to a self-custody wallet:

• Hot wallet: Connected to the internet for convenient transfers—ensure device and software security.
• Cold wallet: Stores private keys offline for higher security—ideal for long-term storage. When withdrawing, select a Bitcoin mainnet address (starting with bc1 or 1/3), double-check both address and fees.

Step 6: Back up & manage risk. Write down your seed phrase offline and store it in multiple secure locations—avoid photos or cloud storage; regularly check account security; test withdrawals with small amounts; beware fake support staff or phishing links.

How Does Bitcoin (BTC) Differ From Ethereum (ETH)?

The two have different purposes and technical approaches:

• Purpose & Functionality: Bitcoin focuses on store of value and decentralized money; Ethereum is designed for smart contracts and decentralized application platforms.
• Consensus Mechanism: Bitcoin uses PoW; Ethereum has transitioned to Proof of Stake (PoS), securing the network through staking.
• Supply Rules: Bitcoin has a fixed cap of 21 million; Ethereum has no fixed cap but introduced a “burn” mechanism—net issuance depends on network activity.
• Contract Capabilities & Ecosystem: Ethereum natively supports complex smart contracts with a large DApp ecosystem; Bitcoin’s contract capabilities are more limited but can be expanded via additional protocols or tools.
• Scalability Solutions: Bitcoin typically leverages Layer 2 networks (like Lightning Network) for efficient micro-payments; Ethereum widely adopts rollups and other Layer 2 solutions for scaling throughput.

The two are complementary—Bitcoin is more conservative as digital currency/store of value, while Ethereum excels in programmability and application layers. Your choice depends on your intended use case and risk preference.

Summary on Bitcoin (BTC)

Bitcoin secures transactions through decentralization and Proof of Work, enforces scarcity via its fixed supply cap and halving mechanism, and forms a globally verifiable value network. Market data shows strong dominance and liquidity but highlights the importance of managing short-term volatility and regulatory changes. Practically, you can purchase and store BTC step-by-step on Gate—prioritize account security and private key management. For long-term perspective, evaluate potential value based on issuance rules, security model, and network effects; always approach allocation with ongoing learning and risk controls in mind.

FAQ

Is BTC the Same as Bitcoin?

Yes—BTC is the ticker symbol for Bitcoin. “BTC” stands for “Bitcoin” and is universally recognized as its token code. Whether on exchanges, wallets, or blockchain explorers, BTC refers to Bitcoin—just as USD represents the US dollar in traditional finance.

How Much Is One BTC Worth in USD or RMB?

BTC’s price fluctuates constantly; there’s no fixed exchange rate. You can check real-time USD or RMB prices for BTC on platforms like Gate—usually displayed on each token’s detail page. Before making any trading decisions, compare prices across multiple platforms to ensure you have the latest data. Since prices are driven by market supply and demand, use price alerts to stay updated on major moves.

Why Is BTC Called Digital Gold?

BTC is considered “digital gold” primarily because of its scarcity and store-of-value characteristics. With its total supply capped at 21 million coins—never to be increased—it mirrors gold’s finite nature on Earth. Its decentralized design outside any single nation’s control makes it an attractive option for investors seeking to hedge risk or preserve wealth.

How Should Beginners Safely Buy and Store BTC?

Purchase BTC through reputable exchanges like Gate after completing identity verification. For storage: short-term holdings can be kept in your exchange account; long-term holdings are best transferred to cold wallets (hardware or self-custody wallets) for added security. Never share your private key or seed phrase with anyone—this is crucial for protecting your assets.

Do You Have to Pay Taxes on Holding BTC?

Tax requirements vary by country and region—this does not constitute investment advice; consult local tax professionals for guidance. Generally, gains from appreciation or trading BTC may trigger tax obligations. It’s advisable to keep detailed records of all transactions for future tax filings.

Glossary of Key Bitcoin (BTC) Terms

• Proof of Work (PoW): A consensus mechanism where miners solve complex mathematical problems to validate transactions and create new blocks.
• Blockchain: A distributed ledger made up of cryptographically linked blocks that record all transaction history.
• Mining: The process where miners compete using computational resources to validate blocks of transactions and earn BTC rewards.
• Hash Value: A fixed-length string generated by cryptographic algorithms to uniquely identify block data.
• Wallet: A tool used to store and manage BTC private keys for sending and receiving Bitcoin.
• Halving Event: A scheduled event every 210,000 blocks where miners’ BTC rewards are cut in half.

Bitcoin (BTC) Resources & Further Reading

• Official Website / Whitepaper:

  • https://bitcoin.org/
  • https://bitcoin.org/bitcoin.pdf
  • https://developer.bitcoin.org/

• Development / Documentation:

  • https://github.com/bitcoin/bitcoin
  • https://developer.bitcoin.org/reference/
  • https://en.bitcoin.it/wiki/Main_Page

• Authoritative Media / Research:

  • https://www.coindesk.com/
  • https://www.theblock.co/
  • https://messari.io/