The Editors of Encyclopedia Bitcoinica

Question

What Is the Cantillon Effect?

The Cantillon Effect is an economic concept about how the increase in the money supply results in a change in relative prices. It's named after Richard Cantillon, an economist from the 18th century. The Cantillon Effect is all about how new money affects those who get it first

Question

What Is a Bitcoin Whale?

A Bitcoin whale is a term from the traditional finance world. It's used to describe super-rich people or groups within the Bitcoin ecosystem. These whales hold a lot of Bitcoins, usually enough to influence market trends. When talking about a Bitcoin whale, we typically mean someone or a

Question

What Is a Hash Function?

A hash function is a key concept in computer science and cryptography, used in many areas, including the operation of cryptocurrencies like Bitcoin. In its most basic sense, a hash function is a type of math function. It takes an input, or message, and gives you back a fixed-size string

Question

What Is a Public Key?

A public key is a crucial part of Bitcoin and other cryptographic systems. They use something called public-key cryptography. This might sound tricky, but it's simply a specific type of security system, also known as asymmetric cryptography. This is when you have two keys, a private one and

Question

What Is a Bitcoin Maximalist?

A Bitcoin Maximalist is someone who believes that Bitcoin is the best, or even the only, good solution among all digital forms of money. They think Bitcoin should become the dominant currency used all over the world. Bitcoin Maximalists don't just think about Bitcoin as a new form

Question

What Is a Merkle Tree?

A Merkle Tree is named after Ralph Merkle, who created it. It's a fundamental concept in computer science. Merkle Trees are especially useful in Bitcoin and other types of digital money, known as cryptocurrencies. First, let's understand what a hash function is. Imagine it as a

Question

What Is a Bitcoin ATM?

A Bitcoin ATM, also known as a Bitcoin kiosk, is an automatic teller machine where you can buy and sometimes sell Bitcoin and other digital currencies. It's like an ATM, but you get Bitcoin instead of cash. This type of ATM connects to a Bitcoin marketplace called a

Question

What Is a Bitcoin Miner?

A Bitcoin miner is a person or a group of people who use special computers and software to solve complex math problems. This process is known as Bitcoin mining. The goal is to keep the Bitcoin network safe and validate new transactions. The math problems they solve are called cryptographic

Question

What Is a Channel in the Bitcoin Lightning Network?

A channel in the Bitcoin Lightning Network is like a private payment road that two people can use to send money back and forth. The Lightning Network is a special system designed to improve how Bitcoin works. It adds an extra level, also known as a second layer, to the

Question

What Is a Bitcoin Wallet?

A Bitcoin wallet is a digital application or hardware device that allows people to store, send, and receive Bitcoin. Bitcoin is a decentralized digital currency, a type of internet money that no one controls. To understand this better, let's compare a Bitcoin wallet to a regular wallet. Just

Question

Are Bitcoin Transactions Instant?

Bitcoin has been praised for its potential to disrupt traditional money systems. This is because it's decentralized and doesn't rely on banks or governments. Bitcoin transactions also can be sent across borders quickly. However, whether these transactions are instant is a bit more complicated. Let'

Question

What Is a P2PKH Address?

A P2PKH address, short for Pay-to-Public-Key-Hash, is a type of Bitcoin address that originated in the early days of Bitcoin, when the protocol was first developed by its creator, Satoshi Nakamoto. A P2PKH address always starts with the number 1 and is followed by a unique string of alphanumeric characters.

Question

What Is a Bitcoin Address?

A Bitcoin address is like a digital mailbox in the world of Bitcoin. It is a unique identifier allowing users to send and receive Bitcoin. When someone wants to send you Bitcoin, they need your Bitcoin address to complete the transaction. These addresses come in three formats, each with a

Question

What Is a Bitcoin Node?

A Bitcoin node is a crucial component of the Bitcoin network that helps keep it secure, functional, and decentralized. In simple terms, a Bitcoin node is a computer running the Bitcoin software and participating in the network. There are two main types of nodes: full nodes and lightweight nodes. Full

Question

Are Bitcoin Transactions Reversible?

No, Bitcoin transactions are not reversible. This is a fundamental feature of Bitcoin and its underlying technology, the blockchain. Let's simplify this to understand why. Bitcoin works on a system that doesn't rely on a central authority, like banks. This is called a decentralized peer-to-peer network.

Person

Vitalik Buterin

Vitalik Buterin, a Russian-Canadian programmer and writer, is best known as the co-founder and leading developer of Ethereum, a decentralized platform for smart contracts and applications. His work has played a significant role in shaping the cryptocurrency and blockchain industry. Early Life and Background: Vitalik Buterin was born in Kolomna,

Person Featured

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonymous creator of Bitcoin, the first and most widely known cryptocurrency. Nakamoto's true identity remains unknown, and the name is believed to be a pseudonym for an individual or group. In 2008, Satoshi published the Bitcoin whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System,

Person

Michael J. Saylor

Michael J. Saylor is an American entrepreneur, author, and prominent Bitcoin advocate. He is the executive chairman and co-founder of MicroStrategy, a leading business intelligence and data analytics company. Saylor has played a pivotal role in promoting the adoption of Bitcoin as a digital asset and a store of value,

Book

Mastering Bitcoin: Programming the Open Blockchain

Mastering Bitcoin: Programming the Open Blockchain is a comprehensive guide to understanding and working with Bitcoin technology. Authored by Andreas M. Antonopoulos, a well-known Bitcoin expert, the book aims to educate developers, entrepreneurs, and anyone with a basic understanding of programming about the inner workings of the Bitcoin protocol and

Book

The Bitcoin Standard: The Decentralized Alternative to Central Banking

The Bitcoin Standard: The Decentralized Alternative to Central Banking is an influential book by economist Saifedean Ammous. It explores the history of money, the importance of a sound monetary system, and the potential of Bitcoin to serve as a decentralized alternative to central banks. The book's target audience

Question

When Is the Next Bitcoin Halving?

The next Bitcoin halving event is expected to occur around May 4, 2024, when the Bitcoin blockchain reaches 840,000 blocks. This significant event follows a four-year cycle, and the most recent halving occurred on May 11, 2020, at 09:23:43 UTC. It’s important to remember that the

Question

When Was the Third Bitcoin Halving?

The third Bitcoin halving occurred on May 11, 2020, at 09:23:43 UTC. This event transpired when the network reached its 630,000th block, the first block to have the new mining reward of 6.25 bitcoins per block, down from the previous block's reward of 12.

Question

When Was the Second Bitcoin Halving?

The second Bitcoin halving occurred on July 9, 2016, at 06:46:13 UTC. This pivotal event reduced the mining rewards for a Bitcoin block by half, going from 25 Bitcoins per block to 12.5 Bitcoins. The last block with the old reward of 25 Bitcoins was block number

Question

When Was the First Bitcoin Halving?

The first Bitcoin halving event occurred on November 28, 2012, at 04:24:38 UTC. At this exact moment, the mining reward for adding new blocks to the Bitcoin blockchain was reduced by half. Before the halving, miners received 50 Bitcoins per block. The last block with this reward was

Question

Are Bitcoin Transactions Anonymous?

When people say Bitcoin transactions are completely anonymous, they're not exactly right. You see, Bitcoin isn't anonymous; it's pseudonymous. So, what does pseudonymous mean? When you make a Bitcoin wallet, you get a unique wallet address. This address is like your online name in