top of page
Explore Crypto Terms & Definitions
Loan To Value Ratio (LTV)
A term used to describe the relationship between the size of a loan and the value of the collateral required to obtain it. LTVs are generally below 100% because to minimise risk the lender requires the value of collateral to be greater than the money being borrowed.
Mainnet
A completely developed, launched and functioning blockchain network. In contrast to a Testnet that is working prototype of a blockchain used to test its function.
Market Capitalisation (MCAP)
The number of coins in circulation multiplied by the current price.
Market Sentiment
An assessment of the prevailing attitude towards a financial market, such as cryptocurrency, from investors. The feeling or tone of a market that is revealed by news, trading activity and price movement.
Medium of Exchange
One of the three main characteristics of money - along with Store of Value & Unit of Account. A Medium of Exchange is any item that is widely accepted in exchange for goods or services at an agreed rate.
Merkle Root
The hash of all the individual transaction hashes contained in a block that is included in the block’s header and links to the previous and next block. Enables a simple way to validate and secure transactions within a blockchain. Read our What Is A Blockchain article to learn more.
Metaverse
A virtual world where users can interact, create, and trade digital content, including digital assets using cryptocurrencies.
Microbitcoin (uBTC)
One millionth of a bitcoin or 0.000001. Read more in our guide on Sending & Receiving Crypto.
Millibitcoin (mBTC)
One thousandth of a bitcoin or 0.001. Read more in our guide on Sending & Receiving Crypto.
Mining Pool
A means of participating in a mining operation as a passive investor to share in any profits, in relation to investment, allowing the miner to diversify their risk.
Long
A trade that benefits from an increase in price e.g long position. The expectation that prices will rise “To be long bitcoin”.
Margin Trading
Trading cryptocurrency with Margin, funds borrowed from a Broker or Exchange at a given ratio (Leverage) which can amplify both profits and losses.
Market Order
Executing a trade at whatever price the Market offers at that specific point.
Maximum Supply
The total amount of a cryptocurrency that will ever exist according to its issuance structure. Bitcoin, for example, has a fixed maximum supply of 21 million bitcoin, expected to be reached around 2140. New bitcoin are created through the Mining process, currently 6.25 BTC every 10minutes.
Mempool
Collection of valid transactions waiting to be confirmed by a miner. As bitcoin is decentralised each node creates an instance of the mempool.
Merkle Tree
Hierarchical structure of hashed blocks - resembling a tree - used within the Bitcoin blockchain given the efficiency of checking transaction integrity.
Metcalfe's Law
Describes the value of a network as the square of the amount of nodes connected to the network. For example if a network has 10 nodes, then its value is 10x10 = 100. Metcalfe's Law is used to mathematically describe network effects.
Microtasking
A way of earning cryptocurrency by completing small and often repetitive tasks.
Mining
The name given to the process by which new cryptocurrency is issued. Miners use specific computer hardware - mining rigs - to run arbitrary hashing algorithms (SHA-256 for Bitcoin) with the aim of finding a specific output (like a lottery) which allows the Miner to add new transactions - grouped into a block - to the existing blockchain. In return, successful miners earn a mining reward. This process is known as proof-of-work, as it requires computing power to be committed. The cost of performing the work ensures only valid transactions are added to the blockchain and secures the bitcoin network in proportion to the total computing power of all active miners.
Mining Rig
Computer hardware designed for the sole purpose of efficiently mining bitcoin.
bottom of page