Is cryptocurrency the same as Bitcoin?
Cryptocurrency is the broad category, while Bitcoin is one cryptocurrency. Bitcoin launched in 2009 and uses its own blockchain and proof-of-work mining.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
On this page
- Bitcoin uses proof-of-work mining and has a fixed supply cap.
- Altcoins may use proof of stake or other consensus methods.
- The IRS treats cryptocurrency as property for tax purposes.
- Some tokens may be securities under US law.
- Bitcoin mining uses large amounts of electricity.
Bitcoin appeared in 2009 after the 2008 white paper by Satoshi Nakamoto. Its Bitcoin (BTC) coin page shows live price and market data, and the Bitcoin blockchain page tracks the network. For the origin story, see first cryptocurrency guide.
Is Bitcoin the same as cryptocurrency?
Cryptocurrency is a broad category of digital money that uses cryptography. Bitcoin is one member of that category, and it was the first one. Wei Dai described the idea in 1998, and Bitcoin became the first working implementation in 2009. Many people know Bitcoin best, but the two terms are not synonyms.
How do altcoins differ from Bitcoin?
Altcoins are cryptocurrencies other than Bitcoin. They can serve different purposes, such as smart contracts, privacy or stable value. Some run on their own blockchains, while others are tokens issued on an existing network. Supply and mining models also differ. Bitcoin has a fixed supply cap and uses proof-of-work mining. Other coins may use proof of stake or have changing supply.
How US law treats Bitcoin and altcoins
US tax law treats cryptocurrency as property, so selling or spending it can create a taxable event. The same property rule generally applies to Bitcoin and other coins, but other rules can differ. The SEC may treat some tokens as securities if they are sold as investment contracts. In March 2013, FinCEN classified American bitcoin miners who sell their bitcoins as money services businesses.
Bitcoin Cash, created in August 2017, is one example of a fork with its own rules. Regulation also depends on the activity. Exchanges usually must register with FinCEN and follow state money transmission rules.
Bitcoin price todayLive price, charts and market data live in our Coins section.Frequently asked questions
No. Many other cryptocurrencies exist, often called altcoins. They can have different features and supply rules.
No. A blockchain is a public ledger that records transactions. Cryptocurrency is the digital money that can use a blockchain.
Yes, on exchanges or peer to peer, a bitcoin can be traded for other cryptocurrencies. The rate depends on the market at that moment.
Rules can differ because of how a coin is sold, how it reaches consensus, or whether regulators treat it as a security or property. Bitcoin's long history and mining model also shape its treatment.
