Bitcoin is the first decentralized digital monetary network and the largest cryptocurrency by market value.
In October 2008, an anonymous individual or collective using the pseudonym Satoshi Nakamoto introduced it to the world. Since its launch in January 2009, Bitcoin has revolutionized our understanding of money and financial assets.
People use the term Bitcoin to describe both the digital asset (the bitcoin) and the global, shared computer system – the network, called a blockchain – on which it operates. BTC is the abbreviation for the coin.
As a digital asset, bitcoin allows anyone with internet access to send payments directly to others anywhere in the world. By cutting out the “middleman”, usually a traditional bank, the network has transformed our use of money.
Crucially, no single government or bank owns or controls Bitcoin.
It works on a global blockchain that everyone can see. This replaces central authorities with a public record of every transaction. The result is a decentralized financial system that resists censorship, manipulation, and shutdowns. It offers a transparent and open network: Everyone can access it, and no one can change the records.
These unique characteristics give bitcoin distinct advantages that traditional fiat currencies like the dollar or euro cannot match. These include a hard-coded limit and protection from devaluation – key factors in our investment case for Bitcoin.
They are also the drivers behind Bitcoin becoming a renowned store of value. Bitcoin is often called “liquid gold.” This is because it has the rarity of gold and can be traded instantly around the world.
Also noteworthy is Bitcoin’s history of low correlation with traditional stocks over the long run. We believe Bitcoin offers significant diversification benefits and represents a unique long-term opportunity. And that it should be a core holding for any investor seeking growth and protection against inflation and currency devaluation in the future.
It seems we are not alone in this view. In recent years, the investment landscape has shifted as governments and corporations increasingly add bitcoin to their treasuries. These entities view the cryptocurrency as a strategic reserve asset. They use it to safeguard cash reserves from inflation and the decline of traditional currencies.
Demand is also growing because of Bitcoin exchange-traded funds (ETFs) and exchange-traded products (ETPs). At 21shares, we offer the largest suite of cryptocurrency ETPs in the world, making investing in Bitcoin more accessible.
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