What is Bitcoin?

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What is Bitcoin?

Uipblog | Different Approach, Different Sharing
Published in > Crypto Money · 9 January 2022
Bitcoin is a digital currency. There is no invoice or tangible money to be printed in Bitcoin. The institution (bank) that controls this does not have an authority. Owners are anonymous; Instead of using names, tax IDs, or social security numbers, Bitcoin connects buyers and sellers through encryption keys. Rather, Bitcoin is generated by powerful computers connected to the internet.

The Emergence of Bitcoin with the Economic Crisis
The year 2008 economic crisis was affecting the whole world. Unemployment was very high and banks were being bailed out by governments. This one year, whitepaper "Bitcoin: A Peer-to-Peer Electronic Cash System" was published by Bitcoin's mysterious finder Satoshi Nakamoto. Bitcoin's Genesis Block was created on January 03, 2009. While this marked the beginning of Bitcoin, it also became the pilot of blockchain technology. The discovery of Bitcoin formed the beginning of the crypto money market.

What is Blockchain Technology?
Blockchain is a decentralized public ledger of all Bitcoin transactions. A certain number of transactions form a unit of database known as a "block", and each block stores information about the previous block. Also, each transaction stores information about its previous transaction. In this way, the blockchain ensures full transparency of payments.
Anyone can access Bitcoin's blockchain infrastructure. A method for financial data storage, which is completely transparent and does not belong to any person or institution, was developed together using an open source code. Instead, blockchain maintenance is performed using the collective power of millions of computers that validate the transaction and then add them to “blocks”. Collectively verified transactions cannot be changed or deleted, so all Bitcoin payments are final and indisputable.

What is Bitcoin Mining?
Once a new block is created on the blockchain, it is rewarded with 12.5 Bitcoins approximately every ten minutes. This is a reward for the mining process that spends network maintenance, electricity, and computing. Mining encompasses specialized companies along with many people around the world and constitutes Bitcoin's core value.
The system automatically generates new Bitcoins and automatically regulates the speed of this process. So there is no way to break global rules and earn more bitcoins, except to scale investments with mining hardware and spend a lot on electricity. This is because Bitcoin has a limited potential for increase in value.

What Are The Uses Of Bitcoin?
Bitcoin has no equivalent in our country as a virtual currency. However, some companies use it in some developed countries. The sample shopping items we will give here are valid for abroad. You can use Bitcoin on online e-commerce sites. The list is constantly expanding. Some examples of products you can buy using Bitcoin:
  • Home stuff
  • Video games
  • Gift Cards
  • Travel tickets
  • Food items
  • Cars
  • Tips and assistance
  • Online and offline stores…

Many Bitcoin payment processors will provide a Bitcoin address at the checkout and a QR code representing a payment amount. Thus, it makes it easy to pay with the Bitcoin wallet app on your smartphone. Just scan the QR code and the recipient will pre-fill the Bitcoin address and the requested payment amount. After sending the transaction, the payment is completed.

Can Bitcoin Transactions Be Tracked?
Bitcoin virtual currency is completely transparent. All Bitcoin transactions are public, traceable, and permanently stored on the Bitcoin network. Bitcoin addresses are the only information used to identify where Bitcoins are allocated and where to send them later. These addresses are created exclusively by each user's wallet. Bitcoin addresses cannot remain completely anonymous, as users often have to reveal their identity in order to receive services or goods. Also, the Bitcoin network is a buyer-seller network and it is possible to log the user's IP addresses.

Bitcoin Protocol
Digital asset BTC is a Bitcoin protocol application. The ability to create conditional operations that dictate predefined rules allows for more advanced functionality to be refined. Thus, money becomes programmable.
All of its data can be stored on a blockchain and take advantage of the numerous benefits of these technologies. This opens the door to new types of application in many operating sectors. Many business models will emerge thanks to blockchain and cryptography.

Digital Security in Bitcoin
Asymmetric cryptography offers 100% of its digital assets through private and public key schemes. Each user becomes his own "bank". This is an opportunity for people who do not have access to traditional banking systems but still have an internet-connected phone. Thanks to Bitcoin, these individuals finally have the ability to receive, exchange and retain value without relying on a third party.

Transparency in Bitcoin
Bitcoin is a fully open source virtual currency. This means that anyone can take a closer look at its coding and verify how it works. All transactions are open to everyone on the Blockchain, which means; You can verify your Bitcoin accounts and balances, data.

What Is Bitcoin Aiming To Do?
As stated in the technical review written by Satoshi Nakamoto, who found Bitcoin and launched the system, the electronic money completely aims to extract third parties other than those who buy and sell. This means: It means there will be no banks or other institutions where you will have to entrust your money and you can freely trade with anyone in the world.

Bitcoin is designed in such a way that it cannot be minted without a purpose like conventional coins. To prevent this, there is a maximum amount of Bitcoin that can be created. It is completely open source and each transaction is publicly visible while maintaining anonymity for its users. Day by day, the normal use of money will disappear in the world and humanity will start shopping with virtual money.

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