The Big Whale

Bitcoin

What is Bitcoin?

Bitcoin is a decentralised digital currency, created in 2009, which enables peer-to-peer exchanges without intermediaries. It is based on a public blockchain, secured by a global network of nodes and miners. The supply of bitcoins is limited to 21 million, making it a rare and non-inflationary asset. Bitcoin functions as an alternative monetary system, resistant to censorship and traditional monetary policies. It is used as a means of payment, a store of value and an investment asset.

How does Bitcoin work?

Bitcoin is based on a network of nodes (participating computers) that validate and record transactions in blocks. These blocks are then added to a chain of blocks (the blockchain), so that each transaction is verified and secured. Bitcoin uses a consensus mechanism called Proof-of-Work (PoW), where miners solve complex cryptographic calculations to validate blocks. This process secures the network against fraud and manipulation. Each transaction is then verified by all network participants.

Who controls Bitcoin?

No central body or government controls Bitcoin. It is a decentralised network where the system is managed by the users, developers and miners who maintain the blockchain. The absence of centralised control is one of the cornerstones of Bitcoin's philosophy, allowing each user to have an identical and verifiable copy of the blockchain. Changes to Bitcoin's source code or protocols require the agreement of the majority of the community.

Why is Bitcoin called "digital gold"?

Bitcoin is often compared to gold because of its programmed scarcity (cap of 21 million bitcoins) and its ability to serve as a store of value. Like gold, Bitcoin is seen as a hedge against inflation and a safe haven in times of economic uncertainty. It is also seen as a form of protection against the inflationary monetary policies of central banks.

How do I buy Bitcoin?

To buy Bitcoin, there are several options:

Exchange platforms: Use platforms such as Binance, Coinbase, Kraken, or Bitstamp. These services allow you to convert traditional currencies (such as the euro or the dollar) into Bitcoin.
Bitcoin ATMs: These terminals allow you to buy Bitcoins in cash or by bank card.
Peer-to-peer transactions: You can buy directly from other users via platforms like LocalBitcoins.

To store your Bitcoins, you can choose between digital wallets (software wallets) or physical wallets (hardware wallets) that give you direct control over your private keys.

What is Bitcoin mining?

Bitcoin mining is the process by which transactions are validated and added to the blockchain. Miners use powerful computers to solve complex cryptographic problems (hash calculations) in order to validate a block of transactions. In return, miners receive rewards in the form of new Bitcoins. This validation process helps to secure the network and maintain its integrity. Bitcoin mining relies on the Proof-of-Work (PoW) consensus mechanism, which is energy-intensive, but essential for the security of the blockchain.

What is the ecological impact of Bitcoin mining?

Bitcoin mining consumes a significant amount of energy, due to the nature of the Proof-of-Work mechanism. By 2025, around 60% of mining is powered by renewable energy sources, although reliance on fossil fuels in some regions remains an issue. The ecological debate surrounding Bitcoin is therefore still very much alive, with growing calls for a transition to more sustainable practices. Some miners are turning to sites using abundant renewable energy (such as hydroelectricity in Iceland) to reduce the carbon footprint.

How many bitcoins will exist in total?

Bitcoin supply is limited to 21 million units, a feature built into the network's source code. This cap is intended to mimic the scarcity of precious metals such as gold and prevent inflation. Around 18.8 million Bitcoins have already been mined, and the last Bitcoins will be mined by 2140, making Bitcoin a potential long-term store of value.

How do I buy Bitcoin?

To buy Bitcoin, there are several options:

Exchange platforms: Use platforms such as Binance, Coinbase, Kraken, or Bitstamp. These services allow you to convert traditional currencies (such as the euro or the dollar) into Bitcoin.
Bitcoin ATMs: These terminals allow you to buy Bitcoins in cash or by bank card.
Peer-to-peer transactions: You can buy directly from other users via platforms like LocalBitcoins.

To store your Bitcoins, you can choose between digital wallets (software wallets) or physical wallets (hardware wallets) that give you direct control over your private keys.

How to invest in a crypto ETF for BTC and ETH?

Investing in a crypto ETF generally requires the following steps:

Choose an authorised broker: Many online brokers offer access to the traditional stock markets where these ETFs are listed.
Analyse the offering: Compare fees, liquidity, replication strategy and historical performance.
Put in a buy order: As with any listed security, simply buy units of the ETF via the trading platform.
Regular monitoring: Given the volatile nature of the underlying assets, it is important to regularly monitor market and regulatory developments.

What are the advantages of investing in a BTC/ETH ETF?

Advantages include:

Simplified diversification: A single instrument that reflects the performance of the entire crypto market for Bitcoin or Ethereum.
Liquidity: ETFs trade on the exchange like equities, allowing rapid entry and exit from the market.
Transparency: Regular information on the composition of the fund and its performance.
Accessibility: Allows you to invest in crypto-currencies without having to directly manage a wallet or deal with security issues.