Bitcoin Terms: A Comprehensive Glossary
Using clear definitions and helpful examples, we've put together a helpful list of key terminology related to Bitcoin.
B
Bitcoin Carnivore
Bitcoin Carnivores are a small group of Bitcoiners that eat only meat.
Bitcoin Dominance
Bitcoin dominance is what percent of the total crypto market Bitcoin takes up.
Bitcoin Holders
A Bitcoin holder is anyone who owns Bitcoin, whether a small fraction or a large sum, and can range from individual retail investors to large institutions.
Bitcoin Liquidity
Bitcoin liquidity refers to the ease with which Bitcoin can be bought or sold in the market without significantly affecting its price.
C
Confirmations
In Bitcoin, a confirmation means a transaction has been added to a block.
D
Difficulty
Bitcoin mining difficultyis a measure of how hard it is to mine a new block on the Bitcoin network, adjusting roughly every two weeks to keep block production steady.
Don't Trust, Verify
Instead of Trusting someone who said they sent you crypto, you can Verify whether or not the transaction was completed.
F
Fear & Greed Index
Attempts to measure the mood of the crypto market.
H
Hash Ribbons
Tracks two moving averages of Bitcoin's hash rate to show when miners are feeling pressure.
L
LTH Supply
Long-Term Holder (LTH) Supply refers to the total amount of Bitcoin held by investors who have retained their assets for over 155 days, indicating a reduced likelihood of selling in the short term.
M
Mining Hardware (ASIC)
ASICs are specialized computers designed for mining bitcoin.
Mayer Multiple
The Mayer Multiple compares Bitcoin's current price to its 200-day moving average.
Mining Pool
Groups of cooperating miners that agree to share Bitcoin block rewards.
MVRV-z Score
The MVRV-z Score is a tool that compares Bitcoin's current price to the average price at which it was last traded, helping to spot if the market might be overvalued or undervalued.
N
NGU (Number Go Up)
NGU (Number Go Up) refers to a fundamental characteristic of Bitcoin: that the price is almost always trending up.
NUPL
NUPL, or Net Unrealized Profit/Loss, is like taking Bitcoin's temperature.
NVT (Network Value to Transactions)
Network Value to Transactions (NVT) measures Bitcoin's market value against its daily transaction volume.
O
Open Interest
Open interest in Bitcoin trading is a measure of how many active futures contracts are still open, indicating the number of participants in the market and providing insight into market momentum.
P
Pi Cycle Top
An indicator that tracks two Bitcoin moving averages.
Power Law
Model that suggests Bitcoin's price isn't random chaos, but follows a predictable pattern.
Puell Multiple
The Puell Multiple is a Bitcoin-specific indicator that compares daily miner revenue to its historical 365-day average, offering insights into market cycles and miner profitability.
R
RBF (Replace by Fee)
RBF stands for replace by fee, which involes creating a new transaction to replace an old one.
Realized Price
The average price tag on all bitcoins in circulation.
S
Sharpe Ratio
The Sharpe ratio is a financial metric that measures the risk-adjusted return of an investment by comparing its performance to the risk-free rate and the volatility of its returns.
SOPR
SOPR stands for spent output profit ration, an on-chain indicator.
Stacking Sats
Stacking Sats means accumulating small units of Bitcoin, known as satoshis.
STH MVRV
Compares the current market value of Bitcoin held by short-term holders (less than 155 days) to the price they originally paid, indicating whether they are in profit or loss.
T
Transaction Time
Transaction time in Bitcoin refers to the amount of time until a transaction is confirmed.
U
UTXO
A UTXO (Unspent Transaction Output) is a Bitcoin system that tracks unspent Bitcoin from transactions to ensure secure ownership transfers.
V
Virgin Bitcoin
Virgin Bitcoins are bitcoins that have never been spent. This means they are purchased directly from miners who mined the bitcoin directly.
W
Whale
A Bitcoin whale is an individual or organization that holds 1,000 BTC or more, capable of influencing market prices with their large trades due to the significant size of their holdings.