What is Bitcoin (BTC)? How to buy and sell Bitcoin?
Bitcoin offers secure peer-to-peer (P2P) transactions and is considered the world's first cryptocurrency. Bitcoin, whose fundamentals were explained in an email published in 2008, became operational in 2009. As a decentralized cryptocurrency, Bitcoin enables transactions without the need for a bank or regulatory agency. Bitcoin transactions are processed through the blockchain, and the cryptocurrency is also considered a precursor to the blockchain. In this concept, the blockchain is distributed across the entire network using the distributed ledger model, ensuring that a bank or government agency cannot track the transactions. Although digital currencies such as DigiCash, B-Money, and Bit-Gold were introduced before Bitcoin, Bitcoin has gained global acceptance within a few years due to its decentralized and fast nature.
What is Bitcoin (BTC)?
Bitcoin was developed by an anonymous person named Satoshi Nakamoto and is a cryptocurrency with a peak supply of 21 million. Bitcoin is the forerunner to many different coins as the precursor to the cryptocurrency system. Cryptocurrencies other than Bitcoin are referred to as altcoins. Bitcoin has a limited supply but can be purchased at decimal value. 1 Bitcoin is equal to 100 million satoshis. Although the value of Bitcoin, abbreviated as BTC, was about $0.01 after its inception, it reached $20,000 in 2017 and $69,000 in 2021. The Bitcoin network, which has seen $ 7 trillion in assets transferred since 2009, is important to individual investors and businesses. Large companies such as MicroStrategy and Tesla hold Bitcoin in their financial investments.
When was Bitcoin released?
Bitcoin was introduced in 2009 with open source software and is based on a concept where transactions are performed with cryptography. Bitcoin's development process dates back to 2008. Although the identity of Bitcoin's founder is not known, the 2008 U.S. banking crisis is cited as the reason for the development of cryptocurrency at that time. BTC offered a decentralized and trust-based alternative financial system that did not require intermediaries during the bankruptcy. Bitcoin software, released in 2009, was later updated. The technical nature of Bitcoin has a limited supply, and a halving process takes place every four years. In this process, mining rewards are halved. The last Bitcoin production is expected in the year 2140.
Who is the founder of Bitcoin?
Although the person who introduced the Bitcoin system and developed the database is Satoshi Nakamoto, his identity is unknown. Various theories about whom Satoshi Nakamoto is have survived to this day. Based on the origin of his name, it is claimed that Nakamoto is a person born in 1975 and living in Japan. However, due to the English language used in the Bitcoin whitepaper, Nakamoto is also believed to be a computer scientist living in the United States or Europe. Nakamoto, who developed Bitcoin in 2010, is estimated to own 1 million BTC. Nick Szabo, Dorian Nakamoto, and Hal Finney are among the names believed to be Nakamoto. The possibility that Satoshi Nakamoto is a group is also discussed, and it is also suspected that it is a software developer or group specializing in cryptography.
To which country does the Bitcoin belong?
As a decentralized currency, Bitcoin is not under the control of a bank or government. The distributed ledger system in Bitcoin's network structure makes cryptocurrency secure and usable anywhere there is the internet. Bitcoin can only be created through mining, and the miners who perform Bitcoin's cryptographic operations are located in countries around the world. Therefore, there is no answer to which country Bitcoin originated from. Bitcoin, a database on the blockchain, is considered one of the most secure networks.
What does Bitcoin do?
In its basic definition, Bitcoin, a digital currency, is used as a store of value and a means of payment. People who store or send Bitcoins on the network using Bitcoin's distributed ledger-based blockchain. On the Bitcoin network, which has a secure network structure, an amount of money cannot be used twice. Strong cryptographic computations are required for a transfer to be completed successfully. Instead of official intermediaries, these transactions are carried out by miners who earn Bitcoin in return. The people making the transfer and the miners acting as intermediaries are anonymous in the database. The first use of Bitcoin took place in 2013 when a Bitcoin owner sent 10,000 Bitcoins for two pizza orders on internet platforms. The value of 10,000 Bitcoins was about $25, and the day the pizza was ordered is celebrated as Bitcoin Pizza Day.
Advantages and disadvantages of the Bitcoin
Bitcoin, the pioneer of the concept of cryptocurrency, has sparked a financial revolution in the world with its innovations. In Bitcoin, whose scope is expanding daily, the blockchain consists of a pure append structure. This makes Bitcoin secure, uncensorable, and unblockable. The advantages of cryptocurrency can be expressed as follows:
- It is a good investment vehicle due to its limited supply and the increasing difficulty of production.
- It can be used in any place where there is the internet.
- It allows financial transactions without being tied to a regulatory authority.
- Transfers are fast, anonymous, and inexpensive.
- It is possible to buy Bitcoin in minimal amounts because it is divisible by eight decimal places.
- It has gained acceptance over the years and was first accepted as an official currency by Ecuador.
Bitcoin, which can be traded in USD or TRY on exchanges, is a network where deposits and withdrawals are fast. However, despite its decentralized nature, the Bitcoin exchange rate was very volatile in the early years. Among Bitcoin's drawbacks is that it can be used for illegal transactions due to its untraceability, but nowadays, Bitcoin is legal in many countries, and exchanges operate within the law. As regulation progresses, the illegal use of Bitcoin is decreasing.
How is Bitcoin produced?
Bitcoin mining is the only way to generate Bitcoin. Under the system explained by Satoshi Nakamoto in his white paper, miners are paid upon completion of each block, creating a distributed, secure network structure. Today, powerful computer hardware is needed to create Bitcoin. Powerful cryptographic operations are performed in Bitcoin mining farms, which house graphics cards that form the basis of the network. Although Bitcoin mining has come under criticism for its high energy consumption worldwide, Bitcoin has a smaller carbon footprint than many other industries. The systems used by Bitcoin miners are called rigs. Today, the U.S. is among the leading countries in bitcoin mining. However, Bitcoin mining is also common in countries with low electricity prices, such as Kazakhstan, because Bitcoin production requires significant energy.
How to Buy a Bitcoin?
To buy bitcoin, it is necessary to open an account with cryptocurrency exchanges in Turkey. Cryptocurrency can be stored in the wallet at exchanges, where cryptocurrency and fiat money can be deposited, and transactions can be carried out with wells. On the exchange, where graphs are used to analyze prices, the market value of Bitcoin can be tracked and analyzed. It is possible to make a profit on the declines and increased trading. The concept of hodl, i.e., holding bitcoin for an extended period without transactions, is well-known in the cryptocurrency ecosystem. When buying bitcoin, the balance in the wallet can be transferred to physical units such as cold wallets or sent to other users' accounts. All transactions on the Bitcoin network are anonymous and not subject to the control of any structure.
How to sell a Bitcoin?
Using the Bitcoin address, anyone on the network can buy and sell their amount of BTC at any time. Bitcoin can be sold at a certain level above the limit price, or the current sell offers with a market order. With its price chart rising for the last 12 years, Bitcoin has become one of the most important crypto-money assets on exchanges that can be traded above the Turkish lira rate. With the average price in Bitcoin purchases incurring the acquisition cost, account holders can sell Bitcoin in the market for the amount they want. Being the cryptocurrency with the highest market value, liquidity in Bitcoin transactions is high.
Bitcoin, the most valuable cryptocurrency, is trading at $47,500 on March 30, 2022, and has a market capitalization of $900 billion. With its historic high of $69,000 in 2021, Bitcoin was valued at $0.1 in 2009 when it was first traded. Bitcoin's thousand-fold rise over the years has made cryptocurrency popular worldwide and led to questions about what Bitcoin means, cryptocurrency, and blockchain being discussed worldwide. The current supply value can be used to calculate the price and market value of Bitcoin. Of the 21 million Bitcoins, there are currently about 19 million on the market. Bitcoins $100k means that the market value of BTC is $1.9 trillion.
For Bitcoin and other cryptocurrencies, exchanges are the most common options for payment transactions or storage for investment purposes. Bitcoin can be purchased through CEX (centralized exchanges) and DeFi (decentralized exchanges), either through a direct purchase or swap model. It is possible to store Bitcoin in physical hardware instead of exchanging with a cold wallet. Cold wallets with a special password can be connected to a computer via a USB connection, and the balance in the wallet can be used, and payments can be made. The risk of using a cold wallet is that it is almost impossible to access the balance in the wallet in case of a possible loss of the password and the key.