Bitcoin is a digital currency created in electronic environment and also available in electronic environment. It is not under the control of any institution, organization or person since it is not centralized. Bitcoins are not currency denominated in dollars or euros. It is created by people who use computers that can solve math problems, and by increasing work places.
Bitcoin is the first example of a developing technology, also known as Crypto Para.
Bitcoin’s Normal Currency
Bitcoin can be used to get something from electronic media. In this sense, the Turkish Lira, which can also be used in digital environment, is a currency that we can qualify as Dollar or Euro. But the most important feature of Bitcoin is that it is not the center that distinguishes it from the currencies we know. No institution controls the Bitcoin network. This is relieving some people. Because, it means that a big bank can not get into this money.
Who created Bitcoin?
A software developer named Satoshi Nakamoto has introduced the idea of Bitcoin, an electronic payment system based on mathematical evidence. The idea is to create a currency that can be transferred virtually instantaneously in electronic form, at a very low transaction cost, which is not tied to any central authority.
Nobody. This currency is not physically produced by a central bank that does not account for anyone, and puts its own rules. Because central banks can easily reduce the value of money by printing extra money to cover the national debt. Instead, Bitcoin is digitally created by a human community that everyone can join.
Bitcoins are excavated using the processing power of the distributed network. This is called mining. At the same time, this network effectively handles money transactions made in virtual currency, making Bitcoin its own payment network.
Can unlimited Bitcoin be produced?
No. Bitcoin protocol – algorithms that enable Bitcoin to work – only 21 million bitcoins can be created by miners. But these Bitcoins can be divided into smaller pieces. The smallest amount that can be divided is a hundred millionth of a Bitcoin, which is called “Satoshi”, the name of the founder of Bitcoin.
What is the basis of Bitcoin?
The base of traditional currencies is gold or silver. Theoretically you know that if you go to a bank and give $ 1 you can buy gold (of course it does not work in practice). But Bitcoin’s base is not gold, it’s mathematics.
Worldwide, people are using software that follows a mathematical formula to produce Bitcoin. Anyone who asks for this mathematical form can easily be reached and controlled.
The software is also an open source at the same time. So anyone who wants to check “can you do things that the system needs to do?”
What are the features?
Bitcoin network can not be controlled by a single central authority. Every machine that produces bitcoins (boilers) and transfers forms part of this network and the machines work together. So theoretically, a central authority can not deal with the monetary policy of this network and cause a meltdown – or, as the European Central Bank does in Cyprus at the beginning of 2013, it can not get the customers’ money for their heads. Even if a part of the system is offline for any reason, the flow of money continues.
Conventional banks do all kinds of things for you to open a bank account only. It is a very challenging business, equipped with a bureaucracy to open a trades account. However, you can create a Bitcoin account in seconds without paying any questions without answering any questions.
Users can open multiple Bitcoin accounts, and these accounts are not dependent on any other name, adress, or other information that reveals the identity.
Bitcoin keeps details of all transactions made in the system in a kind of account book called Blockchain. Everything is stored in the blockhouse. Also, if you have an open Bitcoin account, you can see how much bitcoin is stored on that account. They just do not know that the account belongs to you.
But in return there are things that people can apply to make their accounts more concealed:
Do not use the same bitcoin account permanently
Do not transfer Bitcoin in a single account
Minor transaction fees
During international transfers, your bank may charge you ₺ for a fee. Bitcoin does not charge a fee like this.
You can send money to whatever you want, and when the Bitcoin network approves the transfer process, your money is delivered to the destination within a few minutes.
If you send a bitcoin to someone and the recipient does not return it to you, you can not get it back. It’s gone forever.