Understanding Bitcoin Simply
Bitcoin is a peer-to-peer electronic cash system aimed at building a decentralized financial system, providing individuals with sovereignty over digital identity and digital currency, as well as a ledger (for detailed information on Bitcoin, please refer to the Bitcoin whitepaper, https://bitcoin.org/bitcoin.pdf).
BTC total supply
Firstly, Bitcoin's positioning is as a currency. Secondly, the Bitcoin network is a blockchain network where miners convert energy into Bitcoin through the network, a process similar to traditional gold mining. This fundamentally differs from other application-focused blockchains in terms of technology choices, economic models, consensus mechanisms, and cultural attributes. For example, features like Proof of Work (PoW), producing one block every 10 minutes, 1MB block size, periodic adjustment of mining difficulty, and Bitcoin production halving every four years are all designed to better serve Bitcoin's positioning as a currency: security, scarcity, and store of value.
BTC market cap
After 15 years of vigorous development, the Bitcoin network has created astonishing wealth. Due to Bitcoin's monetary attributes, the public has realized that in the turbulent real world, Bitcoin's value and utility are increasingly similar to gold. Owning Bitcoin has become the best weapon against the continuous devaluation of fiat currencies in the real world, and continuously holding Bitcoin has become the happiest and most joyful path to wealth in life.
BTC UTXO age distribution
Bitcoin has become so valuable that it has evolved from electronic cash to digital gold. A unique culture of primarily holding Bitcoin has formed in the Bitcoin community, to the extent that the vast majority of Bitcoin holders are unwilling to sell their Bitcoin, treating it as a family heirloom. The current situation is that about 90% of Bitcoin remains in wallets, with data showing that approximately 40% of Bitcoin has not been traded in the past three years. This has led to a severe lack of liquidity for Bitcoin, and apart from its own appreciation, Bitcoin's annual yield is only 0.5%, far lower than Ethereum's 3%.