Bitcoin is a decentralized digital currency, also known as a cryptocurrency, that was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Unlike traditional currencies, Bitcoin operates without a central bank or single administrator, and it is not backed by any government.
Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. This technology ensures that transactions are secure and irreversible, making Bitcoin a popular choice for online purchases and transfers.
Bitcoin has a limited supply of 21 million coins, which is expected to be reached by 2140. Its value is determined by supply and demand, and it is subject to significant volatility. Bitcoin can be stored in digital wallets and can be used to purchase goods and services from merchants that accept it as a form of payment.
Bitcoin has also gained attention as an investment, with some investors buying and holding it as a long-term asset. However, its price fluctuations can make it a risky investment, and it is important for investors to carefully consider the risks before investing in Bitcoin.
Bitcoin dominance refers to the percentage of total cryptocurrency market capitalization that is accounted for by Bitcoin. It is a measure of Bitcoin's market share relative to other cryptocurrencies.
For example, if the total market capitalization of all cryptocurrencies is $100 billion and Bitcoin's market capitalization is $60 billion, then Bitcoin dominance would be 60%.
Bitcoin dominance has been highly variable over time. At its peak in December 2017, Bitcoin dominance was over 85%. However, as other cryptocurrencies such as Ethereum, Ripple, and Litecoin have gained popularity and market share, Bitcoin dominance has declined to around 40-50% in recent years.
Bitcoin dominance can be an important metric for investors and traders to track, as it can provide insights into the relative strength and popularity of Bitcoin versus other cryptocurrencies. However, it is important to note that market capitalization alone may not be the only factor to consider when evaluating the value and potential of different cryptocurrencies.
