Bitcoin (BTC)

What is Bitcoin?

If you are familiar with digital currencies, you will definitely not need the answer to this question and you know that the story of digital currencies begins with Bitcoin; But if you have just become familiar with this field, there are definitely countless things such as what is Bitcoin in simple language or what is Satoshi and who is Satoshi Nakamoto and what is the support of Bitcoin and what is the form of Bitcoin production and what is the meaning of Bitcoin mining or the use of Bit What is a coin and how can it be defined; It is ready for you. In the rest of this article, we will answer all these questions in the simplest possible language, and you can Evaluate Bitcoin for investment or even fun! So from all these questions you get to to the question of where to start to buy Bitcoin.

What is Bitcoin in simple words

In the simplest definition, it can be said that Bitcoin is a digital currency, or in a more correct definition, a decentralized cryptocurrency that was created in 2009; But what is a cryptocurrency or digital currency? Cryptocurrency refers to currencies that have been developed due to the knowledge of cryptography, and Bitcoin is one of them. Cryptocurrencies are governed by a decentralized system. What is a decentralized system? A decentralized financial system is a system that is not managed by any central authority. You can learn more about what Bitcoin is and how it works.

What is Bitcoin? The world's first cryptocurrency

As we said, Bitcoin is a decentralized cryptocurrency. The abbreviation of Bitcoin in transactions is BTC.

Bitcoin is a currency. So it can be used to buy, sell and store value. The Bitcoin system is not in any way monopolized by a single person or entity. There is no one at the top of Bitcoin management and does not control it; So how do things stay under control? Bitcoin technology provides the security of this system with the help of miners. In fact, Bitcoin does not need any manager to guide and lead in its technology, and anyone can make its decision. To better understand all these concepts, we will review them one by one.

Who is the creator of Bitcoin?

Satoshi Nakamoto is the creator or in other words the inventor of Bitcoin. Satoshi Nakamoto has an anonymous identity and no one knows if he is even a person or a group. The identity of the creator of Bitcoin has not yet been revealed. The only information available about the inventor of Bitcoin is that in 2009 he published the idea of Bitcoin in the form of a white paper (a kind of statement in digital currencies) and in 2010 the story of Bitcoin began. He said goodbye to the Bitcoin network a year after Bitcoin came to life and has not been heard from since then.

Applications of Bitcoin

Buying and selling: You can use Bitcoin to buy from many stores in the world. You can easily choose the Bitcoin option for payment.

Money transfer: Bitcoin can be used to transfer money around the world. You can easily send bitcoins to anyone anywhere in the world without any restrictions.

Store of value: Bitcoin is more similar than paper money (fiat currency); It looks like gold. Bitcoin is finite just like gold. There will only be 21 million bitcoins in the world and no more. If you follow the Bitcoin price chart to date, you will understand how Bitcoin acts as a store of value and is much safer and cheaper to hold than gold, and easier to sell.

How to using Bitcoin as a payment method?

Bitcoin can be accepted as a payment method for purchasing products or providing services. Small and large businesses can easily accept Bitcoin as one of the payment methods by just using a QR code, or an internet business by adding a Bitcoin payment gateway along with other payment methods such as credit cards, Pay Pal etc. can easily accept bitcoin.

 El Salvador was the first country to officially accept Bitcoin as legal tender and legal tender in June 2021.

Overview of Bitcoin features

  1. Decentralization
  2. Being transparent
  3. Limited supply and increase in value
  4. Being safe and not being able to cheat
  5. Being anonymous
  6. Being fast
  7. Irrevocable
What is the Bitcoin network?

The Bitcoin system consists of a collection of computers. These computers are called “nodes” or “miners”. All these computers run the Bitcoin software code and store and maintain its blockchain.

Blockchain means a chain of blocks and it works exactly the same way. In the blockchain, there is a set of blocks with unique data that are connected to each other with the help of a hash. Transactions are part of the data in each block. All computers running the blockchain have the same list of blocks and transactions. In addition, they simultaneously observe new blocks and new transactions. No one can cheat such a system.

In order for a hacker to damage the Bitcoin blockchain mechanism; It should take over 51% of the computing power of the Bitcoin network. As of mid-November 2021, the Bitcoin network has about 13,768 full nodes, and this number is constantly increasing. Due to this issue, the implementation of such an attack seems completely unlikely due to its very high cost.

Even if such an attack occurs; Bitcoin miners are likely to fork a new blockchain, rendering the hacker’s attempt futile. In case of such an attack, the branching of the network starts right from the place where the malicious person caused the manipulation and sabotage of the network data. Therefore, from such a hypothetical point onwards, all miners enter the new blockchain and confirm network transactions there. New blocks are formed in the new path; So-called branching happens. The malicious person remains only in the previous blockchain network and can practically do nothing.

What is a bitcoin wallet?

A Bitcoin wallet can be a physical or digital wallet that facilitates Bitcoin transactions and allows users to track the coins they own.

Although the term “wallet” may be a bit misleading in such a mechanism because the decentralized nature of Bitcoin means that Bitcoin can never be stored in a wallet. The reality is that Bitcoin is distributed across a blockchain. Using the word wallet to explain such a concept is bringing the language of blockchain closer to the language of users. Of course, the use of the word wallet is understandable because we don’t want to overcomplicate things and try to use terms that are closer to the real world of users.

What is peer-to-peer (P2P) technology?

Bitcoin is one of the first cryptocurrencies to use peer-to-peer (P2P) technology to facilitate instant payments. We need miners to make such payments possible. Miners are independent individuals and companies that own the computing power of the network. They are responsible for processing transactions on the blockchain and are rewarded for doing so. This reward consists of new bitcoins released into the network and fees paid by users within the network for making transactions.

Perhaps miners can be considered as a decentralized authority that protects the validity of the Bitcoin network; considered new bitcoins are provided to miners at a fixed rate but periodically and decreasing. In total, only 21 million bitcoins can be mined. As of November 2021, more than 18.875 million Bitcoins have been mined and less than 2.125 million Bitcoins remain to be mined.

As such, Bitcoin and other cryptocurrencies operate in a different way than fiat currencies. In a centralized banking system, currency is printed at a rate that is proportional to the growth of the economy. The reason for this is to maintain price stability. But in a decentralized system, like Bitcoin, the release rate is determined ahead of time and based on an algorithm.

What is bitcoin mining?

Bitcoin mining is the process by which new bitcoins are released or, so to speak, added to the number of circulating bitcoins. In general, in the process of mining, a series of computational puzzles are solved and finally, this process leads to the construction of a new block. Solving puzzles and solving complex computational problems happens so that finally the result of this process leads to the discovery of a new block. Finally, this new block is added to the block of chains or blockchain.

The Bitcoin mining process causes transaction records to be added and confirmed across the network. Miners are rewarded with some bitcoins for their work. This reward is halved every 210,000 blocks or approximately every four years, which is called halving. In 2009, the block reward was 50 bitcoins for every new block discovered by miners, but on May 11, 2020, after the third halving in the Bitcoin network, the same amount of reward was reduced to 6.25 bitcoins for discovering a new block. has been found

Different hardware can be used to mine Bitcoin. However, some of them are more rewarding. Certain computer chips, called ASICs, as well as certain graphics cards (GPUs) can achieve higher rewards. These sophisticated mining processors are known as “mining rigs”. The higher their computing power, the more rewards are obtained from these devices.

What is the actual number of bitcoins?

The number of bitcoins will be a maximum of 21 million units and probably the last bitcoin unit that will be mined; It will happen near the year 2140. As of November 2021, more than 18.85 million units (approximately 90% of the total supply) of these bitcoins have been mined. In addition, researchers believe that about 20% of this number has been lost due to forgetting the private key and has practically gone out of circulation, that is, 5 million units of Bitcoin are out of reach and about 10 million units are in hard wallets. They have been stored or held for a very long time. About 3 million units of Bitcoin are circulating in exchanges.

A bitcoin can be divided into eight decimal places (100 millionth of a bitcoin) and its smallest unit is called “Satoshi”. This number of decimals may be changed, if necessary, as well as the acceptance of miners and Bitcoin network operators through collective wisdom, and may even exceed this number of decimals.

Where to start to buy bitcoin?

Are you interested in buying Bitcoin and investing in this digital currency? Great! You are still among the limited number of people in the world who have shown interest in this digital currency. However, this is not the end of the road. If you want to know where to start buying Bitcoin; The first step for you is more research. You must consider all aspects and make sure of all issues. If you know technical analysis, you can get good help from it in this way; however, it is better to research more about blockchain and digital currencies. After knowing all aspects including market fluctuations, you decided to buy Bitcoin; Make sure you don’t invest your life’s worth in this digital currency. Now that you have decided on these things, you can easily start buying bitcoins.

Digital currency exchanges are the best and easiest option to enter the digital currency market and buy bitcoins, provided they are trusted. You can easily register at Fibitex and start investing in Bitcoin. Just deposit the desired amount to your Fibitex account and buy at the researched price. Avoid depositing large sums at the very beginning. Do some shopping and research. Soon you will become a professional trader.

Final word; The future of investing in Bitcoin

Bitcoin can even be the currency of the future world. Of course, most of the aspects of Bitcoin investment have been paid attention to by people, and it should be seen how Bitcoin will open its place in economic discussions with the passage of time. You can use digital currency exchanges like Fibitex to buy bitcoins and it will only take you a few minutes. The future can be very different from the present, but its footprints can always be traced in the present.