Considered the decentralized revolution of the financial world today, Bitcoin is not just a digital currency for many people. It is also a philosophical and technological revolution for a large community. So, what is Bitcoin?
Bitcoin is basically a digital currency that can be bought, sold and transferred without the need for third-party services such as a brokerage firm and bank. It is abbreviated as BTC and is denoted by the symbol ฿. It works on a distributed ledger known as the blockchain.
“What is Bitcoin?” Now that we have briefly summarized the question, we can now examine this technology, mention its features and take a look at its details. Let’s take a closer look at this initiative that has taken the world by storm.
To Whom Does Bitcoin Belong?
Bitcoin, Satoshi It was created by a person or group with the pseudonym Nakamoto. “When did Bitcoin come out?” When looked at, the calendar points to the year 2018. Satoshi Nakamoto published Bitcoin’s first whitepaper and a year later released the first Bitcoin software. “What is Bitcoin?” Although there are many answers to the question, Satoshi, the founder of this cryptocurrency Nakamoto’s identity remains unclear. Since he prefers to remain secret, this information seems to remain secret unless he is revealed.
Satoshi This cryptocurrency, created and developed by Nakamoto, is actively used around the world and is adopted by many people today.
What are the Features of Bitcoin?
Below are Bitcoin’s unique structure and the most important features that make it so popular.
- Being Digital: Bitcoin is a completely digital asset and has no physical counterpart.
- Decentralization: One of the basic principles of Bitcoin since its emergence has been that it should not be centralized. It is designed as a network that includes every user, without being affiliated with any institution or person. This means that control is not vested in a single organization, ensuring the distributed nature of the Bitcoin network.
- Transparent: All Bitcoin transactions occur via the blockchain. If the wallet has been used openly, the account balance can be accessed after careful examination, but the user information of the account cannot be accessed.
- Fast: Peer, one of the most innovative structures of Bitcoin compared to the current order to Thanks to peer -to-peer transfer, transactions in Bitcoin are completed very quickly. Therefore, money transfer transactions can be made anywhere in the world within minutes. Network density is one of the main factors on transfer time.
- Cannot be changed: Since data is kept in multiple locations in the Bitcoin network, information is not lost if a single network is damaged or cyber-attacked. In this way, data or operations cannot be changed. For example: Bitcoin sent to an address cannot be retrieved unless the other party consents to sending it back.
- Limited Supply: The total supply of Bitcoin is limited to 21 million. This reduces the risk of inflation and can help preserve Bitcoin’s value.
- Secure: Thanks to Bitcoin’s distributed structure, every person or computer that can access the network using the internet is like a center. Bitcoin transactions are secured by resorting to complex mathematical algorithms. This means that transactions are almost completely secure and unalterable. For any cyber attack to be successful, at least 51% of the entire system must be taken under control.
- Transaction Fee: Due to the transparency and distributed structure of the transactions, Bitcoin is peer-to-peer. to peer, that is, value, data, etc. from person to person. makes the transfer possible. Thus, transaction fees are also small. Of course, transaction fees may vary depending on the density on the network.
What is Bitcoin Working Logic?
Behind the working logic of Bitcoin is that it operates on a distributed network with the participation of many people. Understanding how Bitcoin works, “What is Bitcoin?” It is just as important to understand the problem. Its operation is based on a system of recording of a ledger called ‘blockchain’. This logic can be brought together under several headings as follows.
- Blocks and Block Chain: Bitcoin transactions are collected into groups of data called blocks. Blocks are mathematically solved and created through the process defined as Bitcoin mining. These blocks are connected to each other sequentially and a blockchain is created.
- Mining and Security: Miners are in a complexity race when creating transaction blocks. The complexity resolved for the block creation process creates a control mechanism for transaction security in the network. Miners ensure the security of the network by validating transactions and adding blocks to the chain.
- Distributed Network and Validation: The Bitcoin network consists of thousands of computers located around the world. Each participant keeps a copy of the blockchain and is involved in confirming new transactions. In this way, transactions are verified and occur securely without the need for a central authority.
- Cryptography: Bitcoin transactions are encrypted and verified by resorting to cryptographic algorithms. Every user has a wallet, and transactions with these wallets are signed and verified through private and public keys. In this way, the security and accuracy of transactions are ensured.
How to Earn Bitcoin?
There are various methods of earning Bitcoin. The most important of these is its use as an investment tool.
Bitcoin trading can be done via cryptocurrency trading platforms. With each profitable transaction, the amount of Bitcoin owned will increase. This “How to earn Bitcoin?” is one of the first answers to the question.
Bitcoin, like fiat currencies, can also be used as a means of payment for purchases. Payments for product or service sales can be requested via Bitcoin. Bitcoins can be earned by quickly transferring the requested Bitcoins to the owned wallet via the blockchain.
Another method is Bitcoin mining. “How is Bitcoin produced?” just below. Bitcoin can be earned as a result of applying the processes we mentioned in the title.
How is Bitcoin Produced, What is Bitcoin Mining?
Bitcoin production is not tied to any center. Considering this, there is no such thing as printing in a mint like nominal currencies. BTC production is done through the mining system. So, what is Bitcoin mining?
Bitcoins are mined using the processing power on the distributed system. People who produce, or earn, Bitcoin are called miners. Powerful computer systems are needed for mining. The reason for this is to solve mathematical problems that a normal person cannot do. Miners receive rewards as a result of the blocks they create. Bitcoin supply is ensured by releasing the rewards received by miners. This process is important to ensure transaction security and regulate the entry of new Bitcoins into circulation.
Bitcoin mining is the process of executing and confirming transactions necessary for the operation of the Bitcoin network. Bitcoin miner; It is involved in the process of validating transactions, creating blocks and updating the blockchain.
Each Bitcoin transaction is a transaction that must be confirmed by many different nodes on the network, and these transactions are confirmed by miners by solving a mathematical problem. The miner is rewarded by being the first to find the correct answer, and this reward is given as a certain amount of BTC for newly formed blocks.
This process ensures the secure operation of the Bitcoin network and makes it possible to make all transactions on the network completely transparent and understandable. Bitcoin mining, also defined as Bitcoin mining, can also affect Bitcoin prices and the supply-demand balance in the market.
Bitcoin mining has become a more difficult process over time and requires more and more labor and energy. Therefore, today Bitcoin mining is usually done by professional miners and mining at home is very difficult or not possible. The costs and risks involved in mining Bitcoin must be taken into account.
Bitcoin mining briefly covers the following steps.
- Transaction Verification
Miners verify transactions that occur on the Bitcoin network. Each transaction creates a block to be added to the blockchain.
- Block Creation
Miners create a new block by combining the transactions they verify. Raw transactions are added to this block to be added to the blockchain.
- Solving the Complexity Problem
Miners work to solve a complexity problem in the created block. Solving this problem is a process called Proof of Work and requires miners to expend energy and computing power.
- Approval of the Block
Once the complexity problem is solved, a miner broadcasts the created block to the network. Other miners verify this block and add it to the blockchain.
- Receiving Rewards
When a new block is added to the blockchain, the miner receives a reward. Currently the reward for each block is an amount of BTC known as the ‘block reward’. Bitcoin rewards are halved every four years as a result of a development called Bitcoin halving. These rewards are currently 6.25 BTC per block. In 2024, it will decrease to 3,125 BTC.
This process preserves the distributed nature of Bitcoin and ensures the security of the network.
How Does Bitcoin Gain Value?
BTC’s appreciation sometimes depends on one factor, sometimes it depends on the combination of several factors. Some of these factors are as follows.
- Supply and Demand: Bitcoin’s supply is capped at 21 million BTC. Increasing demand may also increase the price. Demand varies depending on how interested investors, individuals, and institutions are in Bitcoin.
- Adoption Rate: Both Bitcoin’s usage areas and adoption rate affect its value. Especially when large companies, payment systems and financial institutions begin to accept Bitcoin, it is likely to increase its value.
- Regulations and Government Policies: How governments and regulatory bodies approach Bitcoin is important. A positive environment can increase investors’ confidence, which can positively support the price.
- Media and Public Perception: Positive news about Bitcoin reflected in the media and positive public perception can positively affect the price. Opposite developments may pave the way for price declines.
- Technological Progress and Security: Factors such as the security, usability and scalability of Bitcoin’s protocol and infrastructure can strengthen investors’ confidence and therefore positively affect its value.
- Alternative Investment Instruments: The performance of other financial asset classes may affect the value of Bitcoin. For example, a decline in investment instruments that are seen as safe havens may increase the demand for Bitcoin.
The combination of these factors determines the value of Bitcoin. For this reason, the price may vary.
What is Bitcoin Bull Season?
Refers to a period in which the price of BTC increases significantly and the market is generally in an upward trend. Bull seasons are periods of time when investors’ demand for Bitcoin often increases.
During these periods, multiple factors may come together and cause price increases. These may include factors such as the increased interest of institutional investors in Bitcoin, large companies and financial institutions investing in Bitcoin, media coverage of Bitcoin, expansionary monetary policies of central banks and general economic uncertainties.
Bull seasons can often present profitable opportunities for investors. However, the nature of the market involves risks. Sudden price fluctuations and corrections may occur during these periods. Therefore, investors should be careful and manage their investments appropriately.
What is Bitcoin Bear Season?
Bitcoin bear season refers to the period of time when the price of Bitcoin tends to decline over a certain period.
During this period, Bitcoin investors may panic and sell as prices fall. These sales lower the price even further and the cycle continues. So far, it has been seen that this period is temporary and the market has been witnessed to recover many times.
During bear season periods, Bitcoin investors should be careful and remember that prices may drop temporarily, although they generally have long-term investment strategies. Additionally, those considering investing during the bear season should know more about the markets and understand the risks well.
Bitcoin Price by Years
BTC price varies considerably from year to year. It has experienced great rises as well as great declines from the very beginning until now. When we look at the general view so far, it is that it continues its upward trend by breaking new records at regular intervals. You can briefly examine the performance of Bitcoin over the years in the table below.
| Year | BTC/USD Price Range (Lowest – Highest) |
| 2009 | $ 0 – 0.09 |
| 2010 | $0 – 0.40 |
| 2011 | $ 0.29 – 32 |
| 2012 | $4 – 16 |
| 2013 | $13 – 1,163 |
| 2014 | $310 – 936 |
| 2015 | $172 – 465 |
| 2016 | $351 – 981 |
| 2017 | $784 – 19,892 |
| 2018 | $3,217 – 18,343 |
| 2019 | $3,401 – 13,017 |
| 2020 | $3,850 – 29,096 |
| 2021 | $29,796 – 68,789 |
| 2022 | $18,490 – 47,835 |
| 2023 | $16,493 – 44,727 |
How to Open a Bitcoin Account?
Another name for a Bitcoin account is known as a Bitcoin address. In fact, this is the commonly used expression. There is more than one way to open a Bitcoin account. One of the easiest ways is to use cryptocurrency exchanges such as ICRYPEX. Thanks to cryptocurrency exchanges, a Bitcoin address can be created and transfers and buying and selling transactions can be made through this address.
Apart from cryptocurrency exchanges, a cryptocurrency wallet can be used to provide this transaction. Hot wallets can be installed on smartphones as applications or used via the web browser. When you want to use your BTC account physically, hardware wallets can be preferred. These devices, which are in USB format, are also known as ‘cold wallets’. The reason why it is called a cold wallet is that it serves offline.
Opening a Bitcoin account can be done by evaluating all these options.
How to Buy Bitcoin?
“What is Bitcoin?” This is one of the most researched topics by those who wonder. So, how to buy Bitcoin? One of the easiest ways to do this is to become a member of a cryptocurrency exchange. Determination of Bitcoin value is achieved by supply-demand balance. This supply-demand balance occurs thanks to cryptocurrency exchanges.
Where to Buy Bitcoin?
To buy Bitcoin, first After ICRYPEX membership registration is created, money can be sent to the user account at ICRYPEX through contracted banks. Afterwards, Bitcoin buying and selling transactions can be started.
Where to Keep Bitcoin?
There are several methods investors can choose to hold or store Bitcoin. These methods are as follows.
- Centralized cryptocurrency exchanges
- Digital wallets. It is also known as hot wallet.
- Physical wallets. It is also known as cold wallet.
Each type of wallet has its own advantages and security features. Therefore, needs and security requirements should be evaluated before making a choice.
