Graph source: bitbo.io

Bitcoin is a decentralized digital currency that allows peer-to-peer transactions without intermediaries like banks. It operates on a blockchain, a public ledger that records all transactions securely using cryptography. Introduced in 2008 by Satoshi Nakamoto, Bitcoin is designed for secure, transparent, and censorship-resistant value transfer.

Bitcoin transactions are verified by a network of computers (nodes) through a process called mining, where miners solve complex mathematical problems to add transactions to the blockchain. Users send and receive Bitcoin using digital wallets, which store private keys for signing transactions. The network’s consensus ensures security and prevents double-spending.

Bitcoin is pseudonymous, not anonymous. Transactions are recorded on the public blockchain, linked to wallet addresses but not directly to personal identities. Advanced analysis can sometimes trace transactions, so users seeking privacy should use techniques like generating new addresses per transaction.

Need help achieving anonymity? We cannot completely shelter your Bitcoin from the prying eyes of the intelligence services. Nor will we help you evade taxes. But if structured properly, your Bitcoin transactions will leave only infinitesimal footprints. If you have a desire for privacy or want to paint a smaller target for would be thieves, this can be invaluable. Explore your options by scheduling a free 15 minute consultation to discuss your concerns.

Bitcoin’s blockchain is highly secure due to its decentralized nature and proof-of-work consensus, making it resistant to hacks. However, user errors like losing private keys or using insecure wallets can lead to losses. Employ strong security practices, such as two-factor authentication and offline storage, to protect your funds.

The weak link in Bitcoin is you the user and bad habits you may acquire.As your Bitcoin savings grow, make sure these are up to snuff. Schedule a free 15 minute consultation to review that your practices are safe.

Bitcoin carries risks like price volatility, which can lead to significant losses. Security risks include hacks on exchanges or wallets if not properly secured. Regulatory changes may also affect its value or legality. Only invest what you can afford to lose and research thoroughly.

Need help mitigating those risks? Find out how we can help by scheduling a free 15 minute consultation sign upto discuss your concerns.

You don’t need to buy a whole Bitcoin! Just like dollars can be divided into cents, Bitcoin can be divided into 100 million parts called satoshis. You can buy as little as $1 or $5 worth—whatever fits your budget.

Many people start small, buying bits of Bitcoin over time. This strategy is called dollar-cost averaging and is popular with everyday users who want to build savings gradually without trying to time the market.

In short: Yes, you can afford it. Bitcoin is for everyone, not just the wealthy.

You can buy Bitcoin through cryptocurrency exchanges like Coinbase, Binance, or Kraken using fiat currency (e.g., USD, EUR) via bank transfers, credit cards, or other payment methods. Peer-to-peer platforms like TransferXO also allow direct purchases from other users. Always research reputable platforms and consider fees before buying.

Need help acquiring Bitcoin securely? Privately? In the right size of UTXO’s? Find out how we can help by scheduling a free 15 minute consultation to discuss your concerns.

A Bitcoin wallet is a software or hardware tool that stores your private and public keys to send, receive, and manage Bitcoin. Beginners might use software wallets like Coinbase Wallet or Electrum for ease of use. Intermediate users may prefer hardware wallets like Ledger Nano S Plus for enhanced security by storing keys offline.

Need help choosing what’s right for you? Find out how we can help by scheduling a free 15 minute consultation to discuss your concerns.

The Lightning Network is a second-layer protocol built on top of Bitcoin. It enables fast, low-cost transactions by moving small payments off the main blockchain.

It works by creating payment channels between users. Once a channel is open, you can send Bitcoin instantly back and forth without waiting for blockchain confirmations. Only the opening and closing of the channel are recorded on-chain.

For example, if Alice and Bob open a channel, they can send hundreds of micro-payments privately and instantly. Even if Alice wants to pay Charlie (and has no direct channel), the network routes the payment through connected channels automatically—like handing off money through trusted intermediaries.

Because it reduces congestion on the main chain, the Lightning Network helps Bitcoin scale for everyday use—whether it’s buying coffee, tipping online, or sending money globally in seconds.

In short: It makes Bitcoin faster and cheaper for small payments, without sacrificing security.

When you write data to the Bitcoin blockchain (e.g., via a transaction), it is:

• “Written” (i.e., confirmed) when a miner includes it in a block.
• In seconds it gets broadcast across the internet.
• • <1–3 seconds: Transaction reaches the global mempool (pending pool).
  • ~10 minutes (on average): A miner adds it to a new block.
  • ~1 hour (6 confirmations): Considered deeply settled and irreversible.
• The valid chain with the most work is considered the true version of history.
• Nodes discard shorter or invalid chains.

A Satoshi is the smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto. One Bitcoin is equal to 100,000,000 satoshis.

This tiny unit makes Bitcoin highly divisible, so you can send or receive even a fraction of a cent’s worth. It’s especially useful for small payments, tips, or micropayments on the Lightning Network.

Think of a satoshi as the “penny” of Bitcoin—but with a lot more precision.

When you read a Bitcoin transaction to verify it, you’re checking whether it’s included in the blockchain—and specifically, in the longest valid chain. Here’s how the longest chain rule works and why it ensures security:

🧱 What Is the Longest Chain?

In Bitcoin, miners compete to add blocks of transactions by solving a difficult math problem (proof-of-work). The “longest chain” is actually the chain with the most accumulated proof-of-work, not just the highest number of blocks.

• Every new block builds on the previous one.
• The valid chain with the most work is considered the true version of history.
• Nodes discard shorter or invalid chains.

🔍 How Verification Happens

When you verify a transaction:

1. Your Bitcoin node scans the longest valid chain from the most recent block (tip) backward.
2. It checks whether the transaction exists in one of those blocks.
3. It also verifies the transaction’s inputs, digital signatures, and ensures the coins weren’t already spent (prevents double-spending).

🔐 Why This Is Secure

• Decentralization: Thousands of nodes independently enforce the longest-chain rule.
• Economic Cost: Rewriting the chain requires redoing all the proof-of-work—which is prohibitively expensive beyond a few blocks.
• Consensus: All honest nodes will reject chains that deviate from the longest valid path.

Thus, the longest chain ensures a single, agreed-upon ledger—where the deeper a transaction is buried (more confirmations), the more secure it becomes.

Bitcoin’s price fluctuates due to supply and demand dynamics. Its fixed supply of 21 million coins contrasts with varying demand influenced by media coverage, regulatory news, and market sentiment. Halving events, which reduce mining rewards, also impact supply and can drive price changes.

In recent years, Bitcoin has made significant strides toward acceptance by governments and institutions. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, enabling its use for goods, services, and taxes, though a 2024 IMF agreement made business acceptance voluntary. Bhutan has accumulated Bitcoin through hydroelectric mining, holding 8,594 BTC by April 2025. The U.S. government, holding 198,012 BTC from seizures, established a Strategic Bitcoin Reserve in March 2025, treating Bitcoin as a reserve asset to enhance financial strategy. Brazil’s 2025 proposal to eliminate capital gains tax on Bitcoin and discussions for a strategic reserve signal growing Latin American interest.

Institutionally, Bitcoin exchange-traded funds (ETFs) approved by the U.S. SEC in January 2024 have attracted billions from firms like BlackRock, driving mainstream adoption. Corporations like MicroStrategy (423,650 BTC) and Tesla (9,720 BTC) have integrated Bitcoin into their treasuries, viewing it as a hedge against inflation. Thailand’s 2025 decision to eliminate tax on Bitcoin held over five years further boosts adoption. Despite regulatory challenges and volatility concerns, Bitcoin’s capped supply and security continue to draw institutional and governmental interest, positioning it as a potential global reserve asset.

We believe Bitcoin will come to underpin the entire global financial system, replacing the current role of the dollar. Why? It is a finite instrument, whose supply and ownership cannot be falsified by any entity or organization. It cannot be artificially printed, like the current dollar standard. It is a neutral yardstick for the global economy similar to the role of Gold. Unlike Gold, it can be instantly assayed, tracked and transferred.

For a fun, cogent 5 minute video on why the role of the dollar may be coming to an end, we invite you to listen to Principles for Dealing with the Changing World Order made Ray Dalio, former CEO of the world’s leading hedge funds.

We do not think Bitcoin will end banking, but it will coopt and dramatically alter banking services. Already giant banks like J.P. Morgan and hedge funds like Blackrock are rushing to establish their foothold, after having fought off Bitcoin’s rise for years.

Already, you can finance a home with Bitcoin as the security. Or you can earn interest on your Bitcoin without being forced to sell it.

In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, enabling its use for goods, services, and taxes, though a 2024 IMF agreement made business acceptance voluntary. Bhutan has accumulated Bitcoin through hydroelectric mining, holding 8,594 BTC by April 2025. The U.S. government, holding 198,012 BTC from seizures, established a Strategic Bitcoin Reserve in March 2025, treating Bitcoin as a reserve asset to enhance financial strategy. Brazil’s 2025 proposal to eliminate capital gains tax on Bitcoin and discussions for a strategic reserve signal growing Latin American interest.

Wish to explore financing a mortgage using Bitcoin? Find out how we can help by scheduling a free 15 minute consultation to discuss your situation.

Not only can you use Bitcoin for payments, but you definitely should . Like yesterday! Bitcoin is accepted by a growing number of merchants and services worldwide. It is held by over 300 million consumers worldwide, accessible on every country on the planet. By setting up Bitcoin merchant services, you’ll grow your business reach and hugely lower your transaction costs.

Imagine receiving money for under 1 penny instead of those 3 percent credit card fees? Imagine paying your vendors for under a penny and in under 2 seconds. Imagine sending a large foreign currency transaction in minutes instead of days, and at a small fraction of the cost. Imagine never having to deal with credit card chargebacks on your sales!

Initial set up is a bit tricky, but once you’ve done so, you will never want to go back to the old ways of transacting.

Need help setting up a merchant account? Or a vendor payments service? Schedule a free 15 minute consultation to discuss your concerns.

Yes, you can use Bitcoin as collateral to borrow cash or stablecoins without selling your Bitcoin. This is called a crypto-backed loan, and it allows you to access liquidity while still keeping exposure to Bitcoin’s long-term upside.

To do this, you deposit your Bitcoin with a trusted lending platform or smart contract. In return, you receive a loan—often up to 50–70% of the value of your Bitcoin, depending on volatility and lender terms.

If the price of Bitcoin drops significantly, you may need to add more collateral or risk liquidation. But if the price rises, you keep the gains while using borrowed funds for spending, investing, or bridging financial gaps.

In short: Using Bitcoin as collateral can be a smart way to unlock its value without triggering taxes or selling your holdings—but it comes with risk and should be used wisely.

Several services let you borrow cash or stablecoins using your Bitcoin as collateral. Here’s a simple comparison to help you choose:

Platform	Loan Type	Loan-to-Value (LTV)	Repayment Currency	Custody	Key Features
Unchained	BTC-backed loan	~40–50%	USD	Multi-sig (you hold 1 of 3 keys)	High security, U.S. based, partial self-custody
Ledn	BTC-backed loan	Up to 50%	USDC or USD	Custodial	Quick approval, lower minimums
DeFi (e.g., Sovryn, Aave on BTC sidechains)	Smart contract loans	Varies	BTC, stablecoins	Non-custodial	No KYC, higher technical learning curve

Tip: Always research platform reputation, interest rates, fees, and whether you retain control of your Bitcoin keys before borrowing.

New vendors are constantly emerging, as Bitcoin usage explodes. Contact us for the latest updates and recommendations.
Schedule a free 15 minute consultation to discuss your concerns.

Yes! Several crypto-powered cards let you spend Bitcoin (and other coins) at millions of merchants worldwide—just like a regular credit or debit card. Many offer high cashback rewards, no bank approval, and instant crypto-to-fiat conversion.

While traditional cards give you 1–2% cashback (if you’re lucky), crypto cards can offer up to 8% back, often in tokens you actually use or hold.

Perks include:

• Global acceptance (Visa or Mastercard)
• Real-time crypto conversion
• No need for credit checks or bank approval

Top Crypto Cards to Consider:

Card	Best For	Key Benefits	Notes
Binance Card (Visa)	Heavy Crypto Spenders	Spend 100+ cryptos, up to 8% cashback in $BNB	No annual fee, but $BNB rewards carry volatility
Coinbase Card	Beginner-Friendly Access	Spend $USDC with no fees, 4% back in $BTC or $XLM	Available in 40+ countries; includes tax tracking
Ledger Card (Mastercard)	Self-Custody Advocates	Non-custodial, spend $BTC, $ETH, $ADA, 2% back in $LST	Security-first, limited regional availability
Bybit Card	Mobile-First Global Users	Spend $BTC, $ETH, $USDT, 5% cashback in $USDT	Supports ATM withdrawals and strong mobile UX
Trustee Plus Card	Secure Simplicity	Real-time wallet sync, 4% cashback	No staking needed, hardware-grade security

In short: Crypto cards are your bridge between the Bitcoin world and real-world spending—fast, flexible, and rewarding.

New vendors are constantly emerging, as Bitcoin usage explodes. Contact us for the latest updates and recommendations.
Schedule a free 15 minute consultation to discuss your concerns.

🔍 On-Chain Transaction Volume (2024–2025)

Daily transactions: ~290,000
Average transaction value: ~$80,000 (skewed by large institutional transfers)
Estimated daily volume: ~$20–25 billion

⚡ Lightning Network Activity (Estimate)

Note: Lightning Network activity is off-chain and mostly private, so only approximations are possible.

Current LN Metrics (2025):
Capacity: ~5,800 BTC (~$400M)
Public channels: ~50,000
Nodes: ~17,000

Assumptions:
Daily LN payments: 1–3 million
Average LN transaction value: $5–$50
Estimated daily LN volume: $10M–$100M

🎯 Combined Daily Volume Estimate (2025)

Category	Daily Volume
On-chain	$20–25 billion
Lightning Network	$10–100 million
Total	~$20.1–25.1 billion

⚖️ Summary

While the Lightning Network currently accounts for less than 1% of total dollar volume, it likely exceeds on-chain in terms of number of transactions, especially for micro-payments, merchant adoption, gaming, and remittances. Its share is expected to grow rapidly as scalability and adoption improve.

Yes—Bitcoin is taxable in most jurisdictions, including the U.S., where it’s classified as property, not currency. You aren’t taxed when buying Bitcoin, but tax is triggered when you sell, trade, spend, or earn it. Each action may result in capital gains or losses, calculated by subtracting your purchase price (cost basis) from the sale or disposal price.

If you earn Bitcoin through work, mining, or business, it’s taxed as ordinary income at its fair market value when received.

Spending Bitcoin—even on small items—is also a taxable event, which creates a tracking burden for users. Some lawmakers are proposing de minimis exemptions to ease this.

Tax rules differ by country. For instance, Germany offers tax-free gains if held over a year, while El Salvador treats Bitcoin as legal tender and may not tax it at all.

In all cases, accurate record-keeping is essential, and every transaction should be reported to remain compliant.

Expecting a big Bitcoin capital gains? Wanting to safely allocate Bitcoin to multiple heirs? Need to incorporate Bitcoin into your corporate balance sheet? Each situation is unique.

If you have a complicated corporate, estate or capital gains issue to address, please sign up for a free 15 minute consultation to discuss your concerns. If appropriate, we will then schedule a followup meeting with the best professional, in the US or abroad. Those services typically cost $200 per hour (subject to change). Not making the call could cost you thousands in unnecessary taxes.

Mining is the process where miners use specialized computers to solve cryptographic puzzles, validating transactions and adding them to the blockchain. Miners are rewarded with newly created Bitcoin. Mining is resource-intensive, so beginners typically join mining pools or opt to buy Bitcoin instead.

Want to get started mining today? Find out how we can help by scheduling a free 15 minute consultation to discuss your concerns.

A UTXO (Unspent Transaction Output) is a fundamental concept in Bitcoin representing the amount of Bitcoin that remains unspent from a previous transaction and available for use as input in a new transaction.

Each Bitcoin transaction consumes existing UTXOs and creates new ones, ensuring the blockchain tracks all unspent funds. For example, if you receive 1 BTC and spend 0.3 BTC, the remaining 0.7 BTC becomes a new UTXO, often with change returned to a new address.

Paying attention to UTXOs is crucial when transacting in Bitcoin for several reasons:

Transaction Efficiency: Combining multiple small UTXOs into one transaction can reduce fees and speed up confirmation, as Bitcoin miners prioritize transactions with higher fee rates per byte.

Privacy: Using a single UTXO per transaction and generating new addresses for change enhances privacy by minimizing address reuse, making it harder to trace spending patterns.

Avoiding Over-Spending: Tracking UTXOs ensures you don’t attempt to spend more than what’s available, preventing transaction failures.

Dust Management: Small UTXOs (e.g., “dust” below 546 satoshis) can become uneconomical to spend due to fees, so consolidating them is important to maintain usable funds.

In 2025, with Bitcoin’s network handling increased transaction volumes and fees averaging around 20-30 satoshis/byte, managing UTXOs effectively optimizes costs and security, especially for frequent users or wallet developers.

Need help with your UTXO management to reduce costs? Find out how we can help by scheduling a free 15 minute consultation to discuss your concerns.