2025 Spring Bitcoin Summary Document

Bitcoin

The world’s first decentralized digital currency, designed to operate without banks or governments, powered by blockchain technology.

Blockchain Technology

A public ledger that records every Bitcoin transaction securely and transparently.

Decentralization

The absence of a central authority, allowing peer-to-peer transactions without the need for banks.

Mining

The process by which powerful computers solve complex mathematical problems to validate transactions and create new Bitcoins.

Bitcoin Cash (BCH)

A hard fork of Bitcoin created when the Bitcoin network split in 2017.

Pseudonymous

Transactions that provide some privacy by not openly revealing users' identities, but are still traceable.

Volatility

The tendency of Bitcoin’s price to fluctuate significantly in short periods.

Proof of Work

A consensus mechanism used by Bitcoin requiring miners to perform complex calculations to validate transactions.

Lightning Network

A proposed solution to reduce transaction costs and increase the speed of Bitcoin transactions.

Speculative Mania

A phenomenon where investors buy assets based primarily on hype and expectation of rising prices rather than intrinsic value.

Digital Gold

A term used to describe Bitcoin due to its fixed supply and perceived value as a hedge against inflation.

Asset Bubble

A market condition characterized by rapid increases in asset prices followed by sharp declines.

Silk Road

An online black market that highlighted the use of Bitcoin for illegal transactions.

Decentralized Finance (DeFi)

Financial services using smart contracts on blockchains to eliminate intermediaries.

Cryptocurrency Exchange

A platform for buying, selling, and trading cryptocurrencies, often subject to regulatory scrutiny.

Regulatory Challenges

Difficulties faced in managing and enforcing laws related to cryptocurrencies, due to their decentralized nature.