Definition
Government-issued currency that is not backed by a physical commodity (e.g., US Dollar, Euro). Bitcoin is often compared to fiat as an alternative monetary system.
Related Terms
Fee
A small payment included with a Bitcoin transaction to incentivize miners to include it in a block. Fees vary based on network demand and transaction size.
Full Node
A computer that runs the Bitcoin software and maintains a complete copy of the blockchain. Nodes independently verify all transactions and blocks.
DYOR
"Do Your Own Research." A common reminder in the Bitcoin community encouraging individuals to independently verify information before making decisions.
Halving
An event that occurs roughly every four years, cutting the Bitcoin block reward in half. This reduces the rate at which new Bitcoin is created, reinforcing scarcity.
Difficulty Adjustment
An automatic recalibration of Bitcoin's mining difficulty that occurs every 2,016 blocks (roughly two weeks). Ensures blocks are mined approximately every 10 minutes.