What is Bitcoin? It’s a digital currency that was introduced by Satoshi Nakamoto in 2008. It does not have any center. It’s is not under the control of an official institution, organization or any person. It’s completely digital and is valid in the virtual environment, but it is a kind of digital currency that can be bought and sold in the currencies of the countries, and can be transferred without the need for any third party services and brokerage houses. The symbol of Bitcoin, which is introduced as an alternative to the dollar and euro in global markets, is ฿ and its abbreviation is BTC.
Bitcoin is the first example of a new technology known as cryptocurrency.
How is Bitcoin Produced?
To produce Bitcoin, you need to mine. You can produce Bitcoin, the crypto currency, by mining. However, with today’s conditions, it is very difficult and costly to mine Bitcoin with the computers you have. Instead, by producing altcoins, which are cryptocurrencies such as Bitcoin, you can convert these other crypto currencies into Bitcoin. To do mining (production) you first need a good graphics card and a computer. You can also mine with the CPU, the processor. However, in today’s conditions, this is very costly and can put you in loss instead of profit. You can do high amounts of excavation, ie mining, with computers with AMD Graphics cards.
What does Bitcoin do for me?
With Bitcoin, you can shop online or convert the coins you produce to dollar and currencies of various countries on various crypto currency exchange sites, namely exchanges. Again, you can include Bitcoin in your business life by trading your products with Bitcoin.
Bitcoin; What is / What is not? What are its advantages?
- It is a digital currency. There is no concrete equivalent. (Gold, Silver etc.)
- Is a network interaction.
- It can be transferred from any point with internet to any point with internet.
- It has no broker. The expenses are very low as there are no middlemen. Only miners who approve the transfer are paid very small amounts.
- Is written in open source code and is open to everyone. The owner of the system is everyone who uses it.
- It’s used in all countries and no one can interfere with your offline account. In this respect, it can be said that it is safer than Swiss banks.
- Is generated by a free program called a miner.
- There’s a certain limit to the amount of BTC to be produced. A maximum of 21 million BTC will be produced in total.
- In order to control the production speed and inflation, the “difficulty level” increases day by day within the framework of certain protocols.
- Every user has a digital / virtual wallet. Bitcoins are held and stored in these wallets.
- Your Bitcoin transfers are signed with a unique signature and are sequentially verified by miners by checking their accuracy and uniqueness.
- You don’t pay any extra to sell products with Bitcoin.
- It can be converted to many currencies such as BTC, USD, EURO. (Sites and exchanges that do this charge commission.)
- You can also make mobile payments with the Qr code.
- BTC exchanges do not stop on weekends or holidays, they are always up and running.
How is its value determined?
The most important factor determining the value of Bitcoin is the supply-demand and the size of its usage area. Factors such as the fact that it can be produced in a limited number, the increasing supply-demand and finally the growing area of use cause the exchange rate of Bitcoin to increase or decrease.
A distributed database called Blockchain technology is used for Bitcoin production. For Bitcoin, an open source software was developed using Blockchain, and this allowed software enthusiasts to produce BTC with their own means. Using this method, the work of producing Bitcoin is called Bitcoin Mining, ie “mining”.
After the production of BTCand its awareness began to increase, many more cryptocurrency series started to be produced by using both Blockchain and developing their own Blockchain technologies. Over time, cryptocurrency exchanges have emerged, showing exchange rates, transaction volumes, and market values of Bitcoin, altcoins and other cryptocurrencies. Today, there are over 2000 coins (cryptocurrency) that are traded on cryptocurrency exchanges.
There are sites that only list the values of cryptocurrencies, as well as coin exchanges where you can buy and sell any coin that serves like an exchange office, that is, you can trade and exchange (exchange) between the coins you want.
What are the features of Bitcoin?
- It is an alternative payment method to banking systems,
- It is independent and unaffected by the country’s economies, politics and inflation,
- You can transfer without the need for any broker,
- Costs are much lower than known transfer methods,
- In businesses that accept BTC, you can pay with BTC quickly,
- You can earn instant profits by trading because the exchange rate increase-decrease differences are much higher than any currency unit,
- It can also be used as a long-term investment tool.
The biggest known mistake!
You can buy as many Bitcoins as you want;
There is a known misconception about buying BTC, I cannot buy BTC without money until the value of BTC (the value of BTC at the time of writing this article was around $ 10,000, so the calculation in the rest of the article was over $ 10,000). Contrary to this information, you can buy any amount of Bitcoin you want, either for 100 TL or for 1,000 TL. The reason for this is that a Bitcoin consists of 100 million Satoshi. In this case, since 1Satoshi is worth 0.00000001 BTC = 0.0001 Dollars, you can buy and sell BTC as much as you want.
Stay tuned to SinceCoin to learn more about Bitcoin and cryptocurrencies.