Origin Dictionary / OD-035

Bitcoin

Nobody can promise you Bitcoin's price. That includes Bitcoin.

01Dictionary Meaning

Bitcoin is a digital asset and payment network whose participants verify transactions against shared protocol rules without a central issuer.

02What People Think

"A limited supply means the price has to rise."

03What’s Underneath

Bitcoin's rules constrain issuance. They do not create a buyer at any particular price.

People use it for different reasons, including transfers, long-term holding and speculation. Demand can change while the supply rules remain the same.

The network and the services around it are also different layers. Holding bitcoin through an intermediary introduces that intermediary's access and custody arrangements. Directly controlling keys introduces different responsibilities. A decentralized network does not make every way of buying or holding its asset identical.

04The Game

Which part of the proposition depends on protocol rules, which depends on demand, and which depends on the service you use?

05One Line

Scarcity limits supply. It does not sign a purchase order.

Related terms

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Crypto Investor Consciousness

Separate the network from the market around it.

References 2
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