Bitcoin, according to Jack Dorsey, is not part of the broader “crypto” category. Dorsey believes Bitcoin should be considered money due to its distinct rules and history. El Salvador was the first country to adopt Bitcoin as legal tender on June 9, 2021.

Bitcoin’s issuance follows a fixed schedule, with a total supply cap of 21 million BTC. The recent halving reduced the block reward from 6.25 BTC to 3.125 BTC. Changes to Bitcoin’s issuance require social consensus among users, offering predictability for investors. Ethereum, on the other hand, adjusts supply dynamically based on network activity.

Bitcoin secures itself through proof-of-work (PoW), while many networks, like Ethereum, use proof-of-stake (PoS). Bitcoin’s focus on security and stability contrasts with PoS networks’ emphasis on upgrades and throughput. Bitcoin experienced a bug in 2010 that briefly created 184 billion BTC before a 53-block reorganization corrected the issue.

Bitcoin evolves slowly, with upgrades undergoing thorough public discussion. The Taproot upgrade used a lengthy signalling mechanism in 2021, showcasing Bitcoin’s deliberate pace. Ethereum, in contrast, introduces changes rapidly through the EIP process. A significant portion of Bitcoin may be permanently lost, according to Chainalysis estimates.

Bitcoin’s base layer focuses on payments, with the Lightning Network facilitating instant, low-fee transactions offchain. Ethereum supports rich, stateful contracts on its base layer, enabling DeFi, NFTs, and onchain games. Bitcoin experiments at the edges while maintaining a stable base layer. Institutions treat Bitcoin differently, with ETFs and options providing traditional exposure to the asset.

US regulators approved rule changes allowing exchanges to list and trade Bitcoin ETPs in 2024. This decision brought Bitcoin to mainstream venues, catering to brokerages, RIAs, and pension funds. Market infrastructure expanded with the approval of options on spot Bitcoin ETFs and index options tied to a basket of those funds. Bitcoin is treated differently from the broader crypto market by institutions, signaling a separate market bucket.

Read more at CoinTelegraph: What Truly Sets It Apart Today