Business,Operations,Guide,Module 1.1
Module 1.2
Bitcoin - Cryptocurrency Basics
Bitcoin (BTC) was the first cryptocurrency and blockchain, introduced in 2009. Bitcoin pioneered the concept of digital scarcity: its supply is algorithmically capped at 21 million BTC. Because of this fixed, limited supply and its durability as a store of value, Bitcoin is often referred to as “digital gold. ” In other words, much like gold, Bitcoin is scarce and cannot be inflated by any central bank – no one can “print” more Bitcoins beyond the cap. This scarcity property is a key reason why Bitcoin is seen as a hedge against inflation and has accrued value over time. In fact, Bitcoin’s fixed supply means it cannot be devalued by arbitrary monetary expansion, which is why it is often compared to gold in the context of storing wealth.
From an operations perspective, it’s important to understand why Bitcoin and similar cryptocurrencies exist and are valued. Bitcoin was created as a decentralized alternative to fiat money (government-issued currency). It operates without the need for any central authority (like a central bank). Transactions are validated by a network of miners and recorded on the blockchain ledger, making them censorship-resistant and transparent. The value of Bitcoin, like any currency or commodity, comes from the market’s collective trust and demand – which in Bitcoin’s case is bolstered by its provable scarcity and the security of its network.
Legacy analogy: Consider the historical gold standard, where paper money was backed by gold in vaults. Bitcoin essentially acts as a digital form of gold – scarce and mined (through computational work rather than physical digging). However, unlike gold, Bitcoin is purely digital and can be transferred globally in minutes without relying on banks. There is no physical asset backing Bitcoin; its value derives from those intrinsic properties and the trust users place in the system’s security and scarcity.
Why Bittrees cares about Bitcoin: As a forward-looking organization, Bittrees, Inc recognizes Bitcoin’s role as a foundational asset in the crypto ecosystem. We view Bitcoin as a reserve asset – a form of collateral and “hard money” for the digital age. Our long-term strategy involves accumulating and holding Bitcoin (analogous to holding gold in a treasury) because it can provide future buying power and stability. In short, accumulating “digital gold” is seen as a prudent measure for financial health and the continued resilience of the organization.