Bitcoin is a digital currency that is published as an open source code in the cryptocurrency category. Bitcoin is a currency that we can spend on our daily purchases and online environments, such as the TL, Dollar, Euro that we use. The characteristic that distinguishes bitcoin from other currencies is that monetary authorities and their governments do not have a dominance over Bitcoin. Because Bitcoin is manufactured in control of the Bitcoin network, not under the control of governments.
Bitcoin was published in 2009 as “protocol” by an individual nicknamed Satoshi Nakamoto. According to this protocol, Bitcoins are an independent currency based on the Peer-to-Peer data sharing network (Peer-to-Peer), which cannot be controlled by a central authority, with a very low transaction fee.
As of February 2015, more than 100,000 traders and sellers have accepted bitcoin as payment. According to research conducted by the University of Cambridge in 2017, between 2.95 and 5.8 million unique users use cryptocurrency wallets.
To better understand Bitcoin, we can sort the properties of Bitcoin as follows::
Bitcoin is an independent currency. Since the production of bitcoins does not take place under the control of monetary authorities and governments as mentioned above, these authorities have no control over Bitcoin. So it would be right to characterize Bitcoin as an independent currency.
It provides Bitcoin users with anonymity in their transactions. Because Bitcoin accounts are encrypted and can be opened more than once, transactions are made anonymously. When opening Bitcoin accounts, you just need to give yourself an email address and a name.
Transactions on the Bitcoin network can be scrutinized by anyone. In a data center called The Block Chain, all transactions over Bitcoin are kept on record. All transactions that take place between Bitcoin accounts are first registered by this network and then the transaction is completed. Users have the luxury of seeing how much transactions are made from which account. But because the accounts are encrypted, they never know who they belong to.
Bitcoin account setup is fairly simple. You can open your Bitcoin accounts at no cost, no questions asked, nor do you charge a fee on your transactions. Because bitcoins are sent via a data-sharing network between contacts, you don’t have to pay a transaction fee to any brokerage.
The money transfers you make in bitcoin happen very quickly. Money transfers with any broker or bank can be delayed by many obstacles. (Working hours etc.) But because Bitcoin is based on interpersonal data sharing, money transfers can be carried out very quickly at any time of day.
There are no transaction cancellations in Bitcoin. Once you transfer money with Bitcoin, that transaction cannot be cancelled. The only way to get the money back is if the buyer makes a money transfer to you again. This seems to be a solution to the problem of “chargeback” in the banks.
Bitcoin Mining (Bitcoin Mining)
Mining is the process of adding trading records to Bitcoin’s accounting of past transactions. The log of past transactions is called blockchain. The blockchain is used to confirm the operations to the remaining network. Bitcoin nodes use the blockchain to separate legitimate bitcoin transactions with attempts to Re-spend money already spent elsewhere.
Mining is deliberately designed to be heavily sourced and difficult, so that the number of blocks found by miners every day remains constant. Individual blocks must contain a work document that can be considered valid.
The main goal of bitcoin mining is to ensure that bitcoin nodes have access to a safe, coercive consensus. Mining is also the mechanism used to incorporate bitcoins into the system: miners are paid a transaction fee and a “relief allowance” of newly created coins. Both serve the purpose of disseminating new coins in a distributed way, as well as encouraging people to provide security for the system.
How much is Bitcoin (BTC)?
By 2013, the bitcoin market was able to be active almost exclusively in the United States. Bitcoin has been touted as a “balloon” by some commentators after the market value of Bitcoin approached $ 1 billion. At the beginning of April 2013, the price per bitcoin dropped from $ 266 to $ 50 and then to $ 100. Within two weeks, starting at the end of June 2013, the price had steadily declined and dropped to $ 70. Bitcoin/usd, which subsequently began to recover, rose to 140 on October 1. On October 2, Silk Road was seized by the FBI. After that incident, the value of bitcoin quickly declined to $ 110. Bitcoin, which managed to recover itself afterwards, managed to surpass US $ 100 on November 28, 2013.
Bitcoin, which rose to a record high in 2017, more than doubled its value in the second quarter of 2017, rising from$1200 to$2500. Bitcoin is still the most valuable cryptocurrency.