Bitcoin Research Hub | BTC information, history and analysis

Bitcoin (BTC) is the world's first cryptocurrency, laying the foundation for the explosive growth of the crypto market. It was conceived in 2007 and officially launched in 2009 by the mysterious figure Satoshi Nakamoto. Bitcoin is ranked number one in the cryptocurrency market. It operates on open-source software and isn't controlled by any organization or individual. This decentralized system allows peer-to-peer transactions without intermediaries, ensuring transparency and security for all transactions. Important milestones for Bitcoin:

1. Bitcoin 2008:

On October 31, 2008, at the peak of the global financial crisis and just six weeks after the famous investment bank Lehman Brothers declared bankruptcy, a person or group using the name "Satoshi Nakamoto" released the Bitcoin Whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" through a cryptographic mailing list. The Whitepaper proposed a new electronic currency system allowing direct online payments between parties without relying on any trusted third parties. Soon after the release, Satoshi implemented the Bitcoin software as open-source code.

2. Bitcoin 2009:

On January 3, 2009, Bitcoin was created when Satoshi Nakamoto mined the genesis block. This first block contained a reference to a headline from "The Times" stating "Chancellor on the Brink of Second Bailout for Banks," understood as a political statement on the global financial system. This event marked the birth of the world's first decentralized digital currency without any ownership.

3. Bitcoin 2010:

In August 2010, a vulnerability in the network was discovered, allowing transactions to exceed the limit. This led to the creation of 184 billion BTC, increasing the total BTC supply at that time by 49,000 times. The developers addressed the issue by updating the Bitcoin software to a new version with a maximum transaction value limit and rectifying the coins created during the incident.In December 2010, Satoshi Nakamoto handed control of the source code repository and the network alert key to Gavin Andresen, a contributing developer. This marked Satoshi's withdrawal from active participation in Bitcoin development, transitioning the project to a more collaborative and decentralized process. The reason for this withdrawal remains unknown, and Satoshi's identity is still undisclosed.

4. Bitcoin 2013:

In March 2013, a software bug in Bitcoin Core v0.8 caused a blockchain split after a miner created a large block (block 225,430). This split led to a reorganization of 24 blocks, affecting over 5,000 transactions. The issue was resolved by miners downgrading to blockchain v0.7.

5. Bitcoin 2017:

In August 2017, the Segregated Witness (SegWit) upgrade changed how data is stored on the Bitcoin blockchain. By separating signature (authentication) data from transaction data, SegWit allowed for more transactions to be stored in each block, increasing network capacity. Additionally, SegWit enabled new transaction types, including the Lightning Network, a Layer 2 scaling solution for offline microtransactions with reduced fees.

6. Bitcoin 2021:

Another soft fork, the Taproot upgrade, was activated on November 14, 2021. Taproot introduced Schnorr signatures to Bitcoin, allowing complex multi-signature wallets to be verified in batches rather than individually. Besides offering a more efficient method for transaction processing, Schnorr signatures enhanced privacy by obscuring the differences between multi-signature and single-signature transactions. The upgrade included three Bitcoin Improvement Proposals (BIP): BIP-340, BIP-341, and BIP-342.

7. Bitcoin 2023:

Combined with SegWit, Taproot's advanced scripting features facilitated the development of inscriptions, a method of embedding arbitrary data, such as images or text, into Bitcoin transaction witness data. Inscriptions can be used for various applications, including digital art, collectibles, tokenized real-world assets, and creating non-fungible tokens (NFTs) when paired with an NFT protocol like Ordinals.The latest release of Bitcoin Core, v26.0, occurred on December 7, 2023.

8. Bitcoin 2024:

Bitcoin block rewards follow the concept of "halving," which has reduced to 6.25 BTC per block. Every 210,000 blocks (approximately every four years), the reward for newly mined BTC halves. The reward will continue to decrease until the maximum supply of 21 million BTC is mined, around 2140. The most recent halving occurred in April 2024 at block 840,000. At that time, the block reward was further reduced to 3.125 BTC.

The advanced Blockchain technology is used to record all Bitcoin transactions in a public ledger, making it easily accessible and verifiable by users. As a result, Bitcoin provides a fast and efficient international payment experience with fees that are almost zero. Bitcoin empowers users with full control over their finances. Unlike traditional banking systems, Bitcoin can be used anonymously, providing privacy to users.

1. Block: Imagine a group of Bitcoin transactions packed into a "block" that's sealed within a certain period. "Miners" use computing power to verify these transactions and receive new Bitcoin as a reward.
2. Bitcoin Unit: Bitcoin can be divided into smaller units. 1 millibitcoin (mBTC) is 1/1,000th of a Bitcoin, and the smallest unit is a satoshi (sat), which is 1/100,000,000th of a Bitcoin.
3. Transaction: A Bitcoin transaction is a simple order like "Person A sends X Bitcoin to Person B."
4. Blockchain: Each transaction is linked to the next like a chain, forming the "blockchain." It’s a public ledger that records every Bitcoin transaction since inception.
5. Mining: "Miners" use powerful computers to solve complex puzzles, verify transactions, and add them to the blockchain. This process is called "mining."
6. Hash Function: Each block is encoded with a unique hash function, ensuring the integrity and security of the blockchain.
7. Blockchain Address: A string of 25-34 characters used to receive Bitcoin. It’s anonymous, helping protect user privacy.
8. Wallet: The place where your Bitcoin is stored. There are two main types of wallets:

• • Full Clients: Store the entire blockchain copy, most secure but requires significant storage.
  • Lightweight Clients: Store a limited version of the blockchain, more mobile but relies on the wallet provider.

Keys: Similar to safe deposit box keys, Bitcoin wallets use two types of keys:

• • Public Key: Encrypts transactions, allowing everyone to verify transactions.
  • Private Key: A secret key to access and spend your Bitcoin.

Bitcoin's value hinges on two main factors working together: its features and its network effect.

1. Bitcoin’s Features and Network Effect: As a network grows, Bitcoin's value increases. Imagine Bitcoin as a telephone network: when only a few people use it, it holds little value. But as the network expands, allowing communication with anyone, the network’s value increases. This also applies to currency networks.
2. Bitcoin’s Network Effect: Historically, people have used various materials as money, from shells to metals, but gold is perhaps the longest-accepted form of currency. Why is that? Gold was chosen for three main reasons: rarity, durability, and divisibility. These attributes made gold a useful medium for storing and trading value. With this utility, gold's network grew over time and became a mainstream currency for centuries. While the US dollar has replaced gold's role in modern society, gold still holds its value, similar to Bitcoin.
3. Why is Bitcoin Often Compared to Gold?

• • Limited Supply: Bitcoin has a capped supply of 21 million coins, making it rarer than other forms of currency like shells or cash.
  • Scarcity: Greater scarcity typically leads to higher value over time. If a currency isn't scarce, its value will diminish over time, leading to reduced purchasing power.
  • Divisibility: Bitcoin can be divided into 100 million parts, making it more flexible for transactions.
  • Durability: A globally distributed network of computers ensures Bitcoin's durability, with no Bitcoin being lost.
  • Additional Advantages: Bitcoin also has advantages over gold, such as portability, mobility, and easy authentication. Gold, in contrast, is difficult to transport, challenging to verify for purity, and incurs high shipping costs.

The Bitcoin network also benefits from the strong network effect of the internet. Despite being newer than gold, the number of Bitcoin owners has surged, while gold owners have remained relatively stable. If Bitcoin's network continues to grow and achieves a market capitalization equivalent to gold, each Bitcoin could be worth around $500,000. Learn more: Bitcoin Price Prediction 2024 - 2030

Due to its decentralized nature, Bitcoin is upgraded through a proposal and community discussion process. Upgrade proposals are called "Bitcoin Improvement Proposals" (BIPs). Anyone can propose a BIP, and the Bitcoin community discusses and decides whether to adopt the BIP. A notable example of a Bitcoin upgrade is SegWit (BIP 141). SegWit was activated in 2017 and improved Bitcoin’s scalability by reducing transaction size. BIPs that change Bitcoin's consensus rules can result in a "fork."

A fork is the duplication and modification of Bitcoin software, creating two separate blockchain chains from one original chain. There are two main types of Bitcoin forks:

1. Soft Fork: A soft fork is a backward-compatible upgrade, allowing old and new nodes to communicate and function together.
2. Hard Fork: A hard fork is a non-backward-compatible upgrade, leading to a split in the network into two separate blockchains. Nodes running the old software cannot interact with nodes running the new software.

Bitcoin Cash (BCH) is the most famous example of a Bitcoin hard fork. BCH was created in 2017 due to disagreements within the Bitcoin community on how to address the scalability issue.

Bitcoin ETF (Exchange Traded Fund) is a fund that tracks the price of Bitcoin. It was officially approved by the SEC (U.S. Securities and Exchange Commission) on the morning of January 11, 2024 (Vietnam time). This historic event marks a significant milestone for Bitcoin. Similar to other ETFs, a Bitcoin ETF allows investors to participate in the Bitcoin market through the traditional stock market without directly owning Bitcoin.

The SEC's approval of 11 Bitcoin ETFs may have positive impacts on Bitcoin's price:

1. Short-term Impact:
   • Increased Demand: The approval of the ETFs will attract new investors to the Bitcoin market, leading to increased demand for Bitcoin.
   • Rising Bitcoin Price: Increased demand will drive up the price of Bitcoin.
2. Long-term Impact:
   • Legitimization of Bitcoin: The SEC's approval of Bitcoin ETFs is a significant step toward legitimizing Bitcoin, leading to broader recognition.
   • Large Investment Inflows: The approval of ETFs will attract large investment inflows into the Bitcoin market, fostering stronger market growth.
   • Bitcoin Price Growth: Significant investment inflows will promote long-term growth in Bitcoin's price.
3. Expert Opinions:

• • Mike McGlone, Senior Strategist at Bloomberg Intelligence: "This is a major step forward for the Bitcoin market."
  • Grayscale Investments: "The SEC’s approval of Bitcoin ETFs will attract more institutional investors to the market."
  • Fundstrat Global Advisors: "Bitcoin's price could reach $100,000 this year."

Bitcoin Halving is a special event that occurs every four years, marking the halving of the reward given to Bitcoin miners after every 210,000 blocks. This mechanism is built into the Bitcoin protocol to maintain the value of the cryptocurrency as a deflationary currency.

History shows that after each Halving, Bitcoin's price often experiences strong growth over a certain period. Historical Halving Milestones:

• 2012 Halving: Bitcoin's price increased tenfold from $12 to $126 within six months.
• 2016 Halving: Bitcoin's price increased by 1.5 times from $654 to $1,000 within seven months.
• 2020 Halving: Bitcoin's price doubled from $8,570 to $18,040 within the same time frame.

Before the 2024 Halving: Bitcoin reached an all-time high (ATH) of $73,961.44 USD. Looking forward, many experts predict that the 2024 Halving will trigger a new price surge for Bitcoin.

1. 2009: The Beginning

• Bitcoin’s price in 2009 was $0.
• Satoshi Nakamoto published the Bitcoin white paper on October 31, 2008.
• The Bitcoin network started operating on January 3, 2009, with the mining of the Genesis Block.
• This event laid the foundation for Bitcoin with an initially negligible price but marked the first step in its development journey.

2. 2011: The First Surge

• Bitcoin's price in 2011 rose from $1 to $30.
• The Electronic Frontier Foundation (EFF) accepted Bitcoin donations for a few months before withdrawing.
• Bitcoin reached a high of $30 on the Mt. Gox exchange.
• Despite dropping below $5 by the end of the year, Bitcoin's growth attracted attention and highlighted its potential in the global financial system.

3. 2013: The Decisive Year

• Bitcoin's price in 2013 rose from $13 to $1,100.
• This was Bitcoin's strongest year for price growth, increasing up to 6,600%.
• Bitcoin saw broader adoption by institutions like EFF.
• The dramatic price increase and media attention made Bitcoin a significant topic in the financial market.

4. 2014 - 2016: The Renaissance

• Bitcoin's price during this period remained stable between $200 and $400.
• Cryptocurrency technology continued to develop, but Bitcoin's price saw no major fluctuations during this time.
• Bitcoin’s second halving in 2016 laid the groundwork for future strong growth.

5. 2017 - 2019: The Second Surge

• Bitcoin's price during this period rose from $1,100 to $20,000.
• Bitcoin reached a historic price in December 2017, increasing twentyfold in less than 12 months.
• This strong growth reflected the public’s increased awareness of cryptocurrency and retail investor interest.

6. 2020: Post-Third Halving

• Bitcoin's price in 2020 rose from around $7,347.49 to nearly $9,100.
• This price increase occurred before and after the May 2020 halving event, with Bitcoin gaining nearly 25% within a few months.
• The cryptocurrency boom and online speculation surged due to the Covid-19 pandemic.

7. 2021: Dramatic Ups and Downs

• Bitcoin reached an all-time high of over $68,500 in November 2021.
• However, Bitcoin faced challenges due to factors like China’s crackdown on mining and regulatory concerns.
• Bitcoin's significant price volatility reflected uncertainty and concern in the investor community.

8. 2022: The Start of Crypto Winter

• Bitcoin’s price declined from January 2022 and fell below $30,000 in May.
• Crypto winter began, characterized by sustained and sometimes sudden losses throughout the crypto market.
• Bitcoin and the crypto market faced difficulties due to the collapse of the FTX exchange and concerns about inflation and rising interest rates.

9. 2023 - 2024: Hopes for Stable Recovery

• Bitcoin started increasing steadily from February 2023, with prices rising to around $23,300.
• This price rise brought hopes of an end to crypto winter and positive signals for the future crypto market.
• At the beginning of 2024, in the first week of January, Bitcoin (BTC) traded at around $43,906, with a market capitalization of approximately $915.81 billion. The recovery and resurgence brought stability between Bitcoin and Ethereum (ETH).
• As of March 14, 2024, Bitcoin’s price reached an all-time high since November 2021, with a market capitalization of $1.23 billion and a total crypto market capitalization of $2.29 trillion ahead of the Bitcoin Halving event.

Here’s a 4-step guide for technical analysis of the Bitcoin market over timeframes using ONUS.

1. Step 1: Preparation
   • Choose the Chart: Use Japanese candlestick charts for 4-hour and 1-day timeframes to ensure a visual and effective tracking of price movements.
   • Select Indicators: Apply popular indicators such as Moving Average (MA), Relative Strength Index (RSI), MACD, and Bollinger Bands for a comprehensive assessment of trends and price volatility.
2. Step 2: Trend Analysis
   • Identify the Current Trend: Distinguish between upward, downward, or sideways trends.
   • Use MA:
     • 50-day MA and 200-day MA: Assess long-term trends, aiding strategic investment decisions.
     • 10-day MA and 20-day MA: Analyze short-term trends, helping investors quickly seize potential trading opportunities.
   • Use RSI:
     • RSI > 70: Indicates overbought conditions, warning of potential bearish reversal.
     • RSI < 30: Shows oversold conditions, suggesting potential bullish reversal.
3. Step 3: Support and Resistance Analysis
   • Identify Support and Resistance Levels: Based on previous highs and lows, use MA and Fibonacci retracement to identify key price areas.
   • Observe Price Reactions:
     • Price rebounds from support: Signals the potential continuation of an uptrend.
     • Price pushed back from resistance: Indicates a possible downward correction.
4. Step 4: Price Prediction

Combine the factors analyzed above to predict near-future price trends. Note that predictions are relative, and the market may change unexpectedly due to various factors. To stay updated with continuous analysis and BTC price predictions, visit the "Bitcoin Price Prediction 2024-2030" page.