Bitcoin, not ‘crypto’: why we only explain Bitcoin

On a crypto exchange, Bitcoin often sits in a long list next to hundreds of other names. Yet it differs fundamentally from most of them: in how it launched, in having no issuer and in its monetary policy.

‘Crypto’ is an umbrella term

‘Crypto’ covers things that have little in common, technically or economically:

• Bitcoin: a monetary system with no issuer and a fixed cap.
• Platform tokens such as ether: fuel for networks on which programs (‘smart contracts’) run.
• Company-linked tokens: a company holds a large share of the units or steers development.
• StablecoinsGlossaryStablecoinA crypto-asset whose value is meant to be pegged to a currency such as the US dollar or the euro. Unlike bitcoin, a stablecoin has an issuer – its value depends on the issuer keeping its reserves and remaining solvent.In the glossary →×: track a fixed value, usually the US dollar, and are generally issued by a company.
• Other tokens, from in-game currencies to joke coins.

All crypto assets other than Bitcoin are also called altcoinsGlossaryAltcoinA collective term for all crypto-assets other than bitcoin. They differ greatly in purpose, technology and distribution of power – many have an issuer or were pre-allocated to founders and companies.On the learning path: Stage 6 · Step 2 – Spotting scams →In the glossary →×. The term is neutral.

‘Bitcoin’ in the name doesn’t mean Bitcoin. Spin-offs such as Bitcoin Cash are separate currencies. Tokens that replicate Bitcoin on another blockchain, and securities that only track the price, are not real BTC in your wallet. More in Forks & controversies and Bitcoin ETPs in your securities account.

How Bitcoin started

On 31 October 2008, Satoshi NakamotoGlossarySatoshi NakamotoPseudonym of the person or group who invented Bitcoin. Satoshi published the whitepaper in 2008, launched the network in 2009 and withdrew in 2011. Who is behind the name remains unknown to this day.In the glossary →× published the Bitcoin whitepaper.^[1] The first block, the genesis blockGlossaryGenesis blockThe very first block of the Bitcoin blockchain, created on 3 January 2009. It contains a newspaper headline about bank bailouts – and its reward of 50 BTC can never be spent, for technical reasons.In the glossary →×, is dated 3 January 2009.^[2] On 8 January 2009, Satoshi announced the software publicly, with source code and the rule “Total circulation will be 21,000,000 coins” – distributed to whoever creates blocks.^[3]

Three features set Bitcoin apart from many later projects:

1. No presale: no units were sold to investors before the launch.^[3]
2. No units created in advance (‘pre-mine’) for a company: since the first block, new bitcoin have only been created through mining, under the same rules for everyone.^[4]
3. No issuer: no company or foundation can issue new bitcoin or manage the supply.

The downside: early participants could mine a lot of bitcoin with little computing power, Satoshi included. Based on patterns in early blocks, security researcher Sergio Lerner estimated in 2013 that Satoshi had mined around 1 million BTC and not moved them up to that point.^[5] That is an estimate, not proof – but a legitimate point in the debate about distribution.

Bitcoin, ether and XRP compared

Sources: Bitcoin Core, Ethereum Foundation, ethereum.org, xrpl.org.^{[4],[6],[7],[9],[10]}

Presales and allocations are a legitimate way to fund development. But they mean that certain groups hold large shares from the outset.

With Bitcoin, 3.125 BTC are currently created per block – less than 1% of the existing supply per year. With Ethereum, validators receive new ether while part of the fees is burned, so the supply can rise or fall; there is no fixed cap.^[4],[8] More on the issuance schedule in The halving & the 21 million.

Who enforces the rules

With Bitcoin, miners find new blocks using proof of workGlossaryProof of workThe method by which miners prove that they have done real computing work for a new block. It lets the network agree on the valid chain without a central authority, and makes rewriting old blocks extremely expensive.On the learning path: Stage 1 · Step 3 – How does Bitcoin work? →In the glossary →×. But every nodeGlossaryNodeA computer that runs Bitcoin software and exchanges transactions and blocks with other nodes. Together, the nodes form the Bitcoin network; full nodes check every rule themselves.On the learning path: Stage 1 · Step 3 – How does Bitcoin work? →In the glossary →× checks for itself whether a block follows the rules. Coin Dance counts more than 25,000 publicly reachable Bitcoin nodes; unreachable ones are not included (as of September 2026).^[11]

This decentralisationGlossaryDecentralisationBitcoin has no headquarters that could change the rules, freeze accounts or print more money. Instead, tens of thousands of independent nodes around the world check for themselves that all the rules are followed.On the learning path: Stage 2 · Step 3 – Criticism & risks →In the glossary →× is why no one can simply change the cap. Anyone who wants different rules needs broad voluntary support – otherwise a separate chain is created, in other words a new currency. Details in Nodes & decentralisation.

Fair counter-arguments

• Different goals, different yardsticks. Ethereum aims above all to be a platform for applications, not primarily money.
• Energy. By switching to proof of stake in September 2022, Ethereum cut its electricity consumption by more than 99.98%, according to ethereum.org (an estimate by the CCRI institute).^[7],[12] Bitcoin deliberately sticks with proof of work; more in Energy & the environment.
• Fewer features. Bitcoin is deliberately limited in what it can be programmed to do. That’s why many applications such as stablecoins run on other networks.
• Bitcoin isn’t perfect either. Early distribution, concentration among large mining pools and fierce disputes over its direction are part of the picture. More in Criticism & risks.

Five questions you can ask of any crypto asset

Bitcoin has to answer the same questions.

1. Who got how much upfront?

   Was there a presale, a pre-mine or fixed shares for the team, investors or a foundation? How large are those shares today?
2. Is there an issuer?

   Can a company or foundation issue new units, freeze balances or decide on development alone?
3. How is monetary policy set?

   Is there a fixed cap? Who can change the issuance schedule, and how hard is that?
4. Who checks the rules?

   How many independent participants run the software? Can you check the rules yourself with your own hardware?
5. What happens without the team?

   Does the network keep running if the founders disappear? With Bitcoin, exactly that happened: Satoshi hasn’t appeared in public for many years, and the network keeps running (see The history of Bitcoin).

A note on the exchanges we present

If you buy through an exchangeTermExchange (crypto exchange)A trading platform where buyers and sellers trade bitcoin with each other via an order book.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary →AdLicensed providers with a paid linkProviders from our comparisonKrakenExchange · MiCA (Central Bank of Ireland)Visit Kraken* (paid link, opens in a new window)BitvavoExchange · MiCA (AFM, Netherlands)Visit Bitvavo* (paid link, opens in a new window)CoinbaseExchange · MiCA (CSSF, Luxembourg)Visit Coinbase* (paid link, opens in a new window)All 7 compared – including non-partners →*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.× with many crypto assets:

• Look for the ticker BTC – not BCH (Bitcoin Cash), no replicated tokens, no products that only track the price.
• Don’t get distracted. Home screens often show the day’s top gainers, promotions or leveraged trading. If that isn’t part of your plan, ignore it.
• Check withdrawals. You should be able to transfer your bitcoin to your own walletGlossaryWallet (Bitcoin wallet)Software or a device that manages your private keys, generates receiving addresses and signs transactions. The bitcoin itself isn’t in the wallet but on the blockchain – the wallet holds the access to it.On the learning path: Stage 5 · Step 2 – Setting up your first wallet →In the glossary →×. What else matters is covered in Choosing the right provider.

What’s next?