Topic: Bitcoin related words in simple terms - page 2. (Read 362 times)

Good post mate, might help people here who needs to know more about these words in general. Glad you being a Newbie still helping out users on the forum.
I like the posts with the formatting like you used bold and kept using a same structure for all the words in the list. +1 Merit for you.

This is not what Market Cap is. Total amount of Bitcoins in circulation is called Circulating Supply. Market cap is the total amount of money which is invested in Bitcoin.

I have learnt the meaning of some abbreviations I see on the forum, thank you. I agree with most but I think you made a mistake adding token as a word directly related to bitcoins.

Token is a word linked more and used generally to refer to some kind of digital asset that needs to exist on an existing blockchain. Bitcoins are not tokens because it has its own blockchain, so token should not be among the listed words related to bitcoins.

Good job OP and i believe you would have engage more of your time in making this compilation up for the beginners to learn even though this aspect had been discussed severally, I've come across a thread that gives the whole alphabetical order meaning with bitcoin terminologies, i know you made a good research to have compiled this up and am sure that not all the bitcoin grammatical words are expressed within this content, but maybe the only few you could remember or conversant with, you can make use of the search button in case of some other time to avoid repetition.

If you had searched around the forum using the search button. You would have realized that there are so many similar topics posted about the same thing in the past. You wouldn't have even wasted your effort.

A few threads

1. https://bitcointalksearch.org/topic/terminology-126798
2. https://bitcointalksearch.org/topic/crypto-terms-for-newbies-3321001
3. https://bitcointalksearch.org/topic/glossary-of-crypto-terms-for-newbies-2905959
4. https://bitcointalksearch.org/topic/glossary-of-terms-in-the-world-of-cryptocurrency-3296370

I believe some other threads already exist but it’s never a bad idea to drop this type of threads since it will help newbies to learn some terms that might help them in their learning journey here in their forum, I’d also suggest you look for similar threads that lacks what you wrote here and add the link at the button of your thread so that newbies can still visit there after going through your own.

One last important thing, I hope you did not copy anything from the internet and display here as your own. I believe you have stayed here long enough to know that plagiarism of any type is not tolerated here in the forum so if you did copy do well to reference it to avoid any issue.

Below is my compilation of a series of words frequently used in Bitcoin discussions and a breakdown of Their meanings for persons who are new in the crypto space and are eager to venture the crypto space.It will also be useful for newbies who often mis- interpret  some synonymous words relating to Bitcoin and crypto.


1. Bitcoin (BTC) -This is one of the first virtual currency which was developed by an anonymous entity  referred to as SATOSHI NAKAMOTO. It is not controlled by any government or private organization. It aims anonymity. It's often also referred to as digital gold.
2. Cryptocurrency - This is a digital based currency (like a form of virtual money).It uses crypto graphy( a form of computer based algorithm encryption) for it's security. it's sometimes referred to as digital currency.
3. Blockchain - Blockchains are decentralized. It is a leger where transactions or blocks which have been validated by miners are recorded. These recorded transactions cannot be altered retroactively once recorded except by altering the subsequent blocks of the block chain.
4. Wallet - These can be in the form of either hard ware or soft ware. they are used to hodl and transact crypto currencies eg Bitcoin. Hardware wallet are less prone to hacks than soft ware wallets.( avoid storing Bitcoins in exchanges!!).
5. Satoshi - This has a value of 0.00000001 Bitcoins it is the smallest unit of bitcoin. it was named after the entity who founded Bitcoin.
6. Mining - This is done by Bitcoin miners. it is a two way job generate new Bitcoins by solving complex algorithms and validating blocks.these blocks are created by the transactions carried out on the Bitcoin network. ( Block chain charges deducted when transacting with Bitcoins are used as rewards for the miners when they validate transactions).
7. Halving - This occurs usually during a space of four years. It is a period when the amount of Bitcoin available in circulation is halved  therefore causing scarcity which leads to increase in price.
8. HODL - This is a term unique to Bitcoin it is used to describe storing Bitcoins or allowing Bitcoin to remain in your wallet without spending.
9. Altcoin - Other types of crypto currencies are classified as altcoins.bitcoin is a crypto currency but is not an altcoin
10. Exchange - This is a platform where Bitcoin transactions can be carried out.consider it as a market place for crypto currencies.
11. FOMO - this simply means fear of missing out.it is used to describe the phobia of being left out while others profit from Bitcoin.
12. FUD - this means Fear, Uncertainty, and Doubt, in full.it describes fear of loss in the crypto space it usually occurs when the crypto market seems uncertain.
13. ATH - means All-Time High.It is the highest price ever reached by Bitcoin.the current ATH is about $63k
14. Bear Market -this is market during fall in the price of Bitcoin. Consider it partially as a period of losses.
15. Bull Market - During this period the market is characterized by rising prices.which promotes profit for hodlers. :
16. Wallet Address - this is a  unique alphanumeric code used to send and receive Bitcoin. Consider it as an account number or routing number just like you have with your bank account.
17. Private Key - A secret key that allows access to a particular Bitcoin address.this is  like a series of characters used to access Bitcoin holdings.
18. Public Key - This is a cryptographic key used to receive Bitcoin.
19. Hash -This is a fixed alphanumeric string which is generated from transactions carried out on the Bitcoin network. It is stored as data for a transaction.
20. Confirmation - This is a process carried out by miners in verifying a Bitcoin transaction . Confirmation is done through multiple blocks on the blockchain.
21. Decentralization - This term is used to  describe the fact that Bitcoin is not controlled by a central entity .therefore a Bitcoin hodler has full control over his Bitcoin assets
22. Fiat Currency - this is a term used to describe our regular money or traditional currency which is issued by the government.
23. Peer-to-Peer (P2P) - This can also be considered as person to person transaction.it simply means transactions between two parties without an intermediary
24. Wallet Backup - This is a copy of your wallet's private keys or seed phrase for recovery and Access to Bitcoin hodlings of a particular address.
25. ICO - this is known as initial coin offering .it is a method of fund generation for new crypto currencies.
26. Pump and Dump - This is usually a profit scheme to inflate the price of a cryptocurrency and then sell off quickly.it is most common with altcoins.
27. Whale -this is used to describe an individual or entity that hodls a large amount of Bitcoin.
28. Hard Fork - This is an important change in the Bitcoin protocol which is incompatible.
29. Soft Fork - in simple  words , soft fork is a change in the Bitcoin protocol .It is however a backward compatible change in the Bitcoin protocol
30. Lightning Network - this uses a layer 2 scaling protocol to increase efficiency of Bitcoin transactions.The lightning network serves as a form of faster  and cheaper Bitcoin transactions.
31. Fungibility - This is the term used to describe interchangeability of Bitcoin.this holds due to the fact that all Bitcoins are of equal value.
32. Token - this is a digital based asset which created on a particular blockchain. It represents asset ownership or utility.
33. Wallet Encryption - This is carried out to further secure ones Bitcoin wallet especially for entities with large amounts of Bitcoin hodlings.
34. Multisignature - this is sometimes referred to as multisig .it is a wallet that requires the use of different private keys to authorize a transaction.
35. Paper Wallet -this is a physical thing e.g paper which carry you wallet details such as wallet address and private keys.this can be regarded as a form of offline backup.
36. Smart Contract - these are self executing contracts .they contain a series of agreement and terms in their code.
37. Address QR Code - this is a scannable digital code  like a series of dot in regular pattern.They represent a Bitcoin wallet address.when decoded by a scanner it produces the characters of the Bitcoin address.
38. Node - this is  computer that is capable of validating and relaying Bitcoin transactions.
39. Hash Rate -this is  the  power of computation of the Bitcoin network.
40. Cryptography - this the collection of secure communication used in the design of Bitcoin.
41. 2FA - this means Two-Factor Authentication in full.It is an additional layer of security for your wallet.
42. Market Cap - This is the total amount of Bitcoins available in circulation.
43.WIF - this means Wallet Import Format in full. It is standard method of encoding private keys.
44. Public Ledger - this is the easily accessible Leger of all transactions on the Bitcoin network.
45. Ticker Symbol - This is a form of shorthand code used to represent Bitcoin on exchanges.
46. KYC -this in full means Know Your Customer .It is a form verification process on some exchanges and rarely in custodial wallets . Bitcoin investors are advised to avoid KYC as much as possible because it prevents anonymity of a Bitcoin investor.
47.P2PKH - this means Pay-to-Public-Key-Hash in full .it is  a common Bitcoin transaction script.
48. P2SH -  This means Pay-to-Script-Hash it is also another form of Bitcoin transaction script.
49. Ransomware - these are  software that are likely to cause harm. They demand Bitcoin as payment to unlock certain files.
50. Regulation - this include the series of rules , regulations and policies put in place by the government over the use of Bitcoin in a particular region of country.

Good luck mate don't  forget to keep your keys safe😁