Bitcoin — the first and largest cryptocurrency
Key facts
| Attribute | Value |
|---|---|
| Created | January 3, 2009 |
| Creator | Satoshi Nakamoto (pseudonym) |
| Max supply | 21,000,000 BTC |
| Mined so far | ~20M BTC (>95%) |
| Block time | ~10 minutes |
| Consensus | Proof of Work (solving cryptographic puzzles) |
| Purpose | Store of value, P2P money |
Why "digital gold"?
Bitcoin shares similar properties with gold:
| Gold | Bitcoin |
|---|---|
| Limited supply | Limited (21M) |
| Expensive to mine | Expensive to mine |
| Global | Global |
| Inflation hedge | Inflation hedge |
| Hard to counterfeit | Practically impossible to counterfeit |
| Hard to fake | Cryptographically secured |
The difference: Bitcoin is easy to send around the world. Gold isn't.
Halving — why it matters
Every 4 years, the miner reward is cut in half:
| Era | Years | Block reward | Total BTC created per day |
|---|---|---|---|
| 1 | 2009–2012 | 50 BTC | 7,200 |
| 2 | 2012–2016 | 25 BTC | 3,600 |
| 3 | 2016–2020 | 12.5 BTC | 1,800 |
| 4 | 2020–2024 | 6.25 BTC | 900 |
| 5 | 2024–2028 | 3.125 BTC | 450 |
The halving effect
After each halving, BTC's price has historically risen for 1–2 years, driven by the drop in new supply — a pattern that has now repeated 4 times.
A historical pattern isn't a guarantee of the future. Think of it as a tool: you spot a repeating pattern → you ask "what's driving it?" Here the answer is simple — shrinking new supply against steady demand. That question is what lets you judge any market headline for yourself.
The Bitcoin network vs other networks
Every network is a separate world
Bitcoin is its own blockchain — separate from EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson →, SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson →, Cardano. That gives you one clear rule you'll quickly master:
- BTC only lives on the Bitcoin network (addresses start with
bc1...) - BTC is only sent to a Bitcoin address — it will never arrive at an ETH/SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → address
- Bridges move value between networks — we handle their risks later (module 2), but in our strategy we hold BTC without them altogether
Bitcoin network characteristics
- Slow: ~10 min per block, 7 transactions per second
- Secure: the largest hash rate (computing power securing the network) in all of crypto
- Fee: ~$0.50–2 per transaction (depends on demand — can be higher during peak periods)
- Simple: sending ONLY, no DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → (without Layer 2Layer 2A second layer built on top of a base blockchain. Arbitrum and Optimism offer cheaper Ethereum transactions.Read the lesson →)
Layer 2 solutions
For faster and cheaper transactions:
- Lightning Network (a fast payment layer built on top of Bitcoin) — micropayments, instant, and <$0.01
- Liquid Network — a Bitcoin sidechain
- We don't use these layers in our strategy
How to acquire BTC
Via a CEX (centralized exchange — simplest)
1. Open a Nexo, Kraken, or Coinbase account
2. Complete KYC (identity verification — passport/ID photo)
3. Deposit euros via SEPA (1-2 business days) or by card
4. Click "Buy BTC"
5. Fee: 0.1-1.5%
Via a DEX (decentralized exchange — more complex, but no middleman)
In the SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → ecosystem you can buy wBTC (wrapped BTC):
- Send SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → from NexoNexoA centralized exchange (CEX) for buying crypto with euros. Custodial — the exchange holds the keys. to Jupiter WalletJupiter WalletThe main Solana wallet used in this course. Holds SOL, USDC and SPL tokens, with a built-in swap feature. MetaMask is used for the Ethereum side.
- SwapSwapExchanging one token for another. E.g. SOL to USDC via Jupiter. SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → → wBTC via Jupiter
- Important distinction: this isn't real BTC, it's a token representing BTC on the SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → network
Our recommendation: beginners should buy real BTC through NexoNexoA centralized exchange (CEX) for buying crypto with euros. Custodial — the exchange holds the keys. and hold it there, or move it to a dedicated Bitcoin wallet (e.g. a hardware wallet). Jupiter WalletJupiter WalletThe main Solana wallet used in this course. Holds SOL, USDC and SPL tokens, with a built-in swap feature. MetaMask is used for the Ethereum side. only works on the SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → network — it doesn't hold real BTC.
Address formats
Bitcoin has several address types:
| Format | Example | Usage |
|---|---|---|
| Legacy (P2PKH) | 1A1zP1eP5... | Old, more expensive |
| Script (P2SH) | 3J98t1WpEZ... | Multi-sig, medium |
| SegWit (Bech32) | bc1qxy2kg... | New, cheapest ✅ |
| Taproot (Bech32m) | bc1pxy2kg... | Newest, privacy |
All formats work — you can send BTC to any of them. But fees and features differ.
Where to hold Bitcoin?
Holding BTC in our strategy
Jupiter Wallet only works on the SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → network, MetaMask only on EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson →. Neither of them holds real Bitcoin.
Hold Bitcoin in one of these places:
- Nexo (exchange) — simplest for beginners
- Hardware wallet (Ledger, Trezor) — safest for large amounts
- Dedicated Bitcoin wallet (e.g. Sparrow, BlueWallet)
Our active DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → strategy runs on SolanaSolanaA fast blockchain (under 1s, gas under $0.01). Home to the Kamino, Orca and Meteora ecosystem.Read the lesson → (Jupiter WalletJupiter WalletThe main Solana wallet used in this course. Holds SOL, USDC and SPL tokens, with a built-in swap feature. MetaMask is used for the Ethereum side.) and EthereumEthereumA blockchain with smart contracts. We use Aave (lending) and Uniswap (LP) on it.Read the lesson → (MetaMaskMetaMaskAn Ethereum/EVM wallet. Used with Aave, Uniswap and Arbitrum.), while BTC is held separately as a "store of value."
What you control when holding Bitcoin
Five things you control yourself — each has a simple fix:
- Mixing up networks → send BTC only to a
bc1...address; test with $5 the first time, not $5,000 - Seed phrase (your secret recovery phrase) → write it on paper, not on a screen — it's your key, and only yours
- Phishing → check the URL (jup.ag, not jup-wallet.app); type it into the address bar yourself, don't click through links
- Custody → hold real BTC on NexoNexoA centralized exchange (CEX) for buying crypto with euros. Custodial — the exchange holds the keys. or in a dedicated Bitcoin wallet, not in wrapped tokens
- Taxes → in Lithuania, BTC profit is taxed at 15% GPMGPMGPM — Lithuanian personal income tax; 15% on realised crypto gains. (personal income tax); set up your record-keeping in advance (CoinTracking, Koinly)
You'll learn to check each of these in a few seconds. These aren't dangers to fear — they're the wheel you're holding.
Once these five things become habit, you can confidently move any amount of BTC — not because "nothing can go wrong," but because you control every lever yourself.
Summary
- BTC = store of value, not an everyday currency
- Limited supply (21M) → long-term deflation
- HalvingHalvingA roughly every-4-years event that cuts Bitcoin's mining reward in half.Read the lesson → every 4 years reduces new BTC supply
- A separate network — can't be mixed with SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →/ETH
- BTC is held separately — NexoNexoA centralized exchange (CEX) for buying crypto with euros. Custodial — the exchange holds the keys., a hardware wallet, or a dedicated Bitcoin wallet
- In our strategy, BTC is held as a "store of value," not for active DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson →
In this lesson you read that there will never be more than 21 million BTC. Check that against real data — takes about 5 minutes, nothing to buy.
This is learning, not investing — use only small amounts you treat as tuition.
You just checked Bitcoin's supply and block reward straight from the network and compared them with the halving table — now you read network data yourself, not through headlines.