Bitcoin guide: All about Bitcoin

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Bitcoin Directory

If you want to buy Bitcon but have question marks in your mind, we are preparing a guide series for you! Bitcoin Directory begins!

Bitcoin Guide Step 1: What Is Bitcoin?

Frequently asked by people in our Bitcoin Guide article “What is Bitcoin?” We will start by answering the question. A question that has been wondered by thousands of people. The simplest answer to give is that Bitcoin is one of the crypto coins and is the first of the crypto coins. Blockchain technology underlies Bitcoin. This technology allows Bitcoin to be a decentralized currency, that is, it is not dependent on any authority. Although Bitcoin emerged as a “peer-to-peer electronic cash system”, it has evolved into digital gold over time. The digital gold nature of bitcoin lies in its limited supply, just like gold. Moreover, the supply of Bitcoin is more precise than gold. In addition, it is possible to transfer in Bitcoin, just as we can make money transfer / eft thanks to the applications of banks.

So where did this Bitcoin originate? Who is the inventor of Bitcoin? In fact, it is not thought that there is a single person who invented Bitcoin. After the 2008 economic crisis that caused heavy damage, a detailed technical article about Bitcoin was published by the person or people who used the name Satoshi Nakamato. This is called “white paper”. Then, the Bitcoin network, which is used by tens of millions of people today, came to life in the early days of 2009.

However, the number of Bitcoins that can be used or produced by all people is limited to 21 million. So no more than 21 million Bitcoins will exist in the world.

The Total Value of Bitcoins and the Amount of Bitcoin Available in the Market
After the emergence of Bitcoin, on July 22, 2013, the total value of Bitcoins in circulation increased to 1.2 billion dollars. While the dates show 26.07.2020, the total value of the Bitcoins in circulation has reached the level of 182.967.290 (182 billion dollars). We said above that the total amount of Bitcoin cannot exceed 21 million. Until the time period we are in, the amount of Bitcoin produced has been recorded as 18,443,043. So we can say that there are 2.5 million Bitcoins waiting to be produced.

We have prepared a brief Bitcoin guide for you below. You can find detailed information as you go below.

A Brief Bitcoin Guide

What is Bitcoin? Bitcoin is a digital currency that emerged in 2009 and is worth thousands of dollars.
What Are the Advantages of Using Bitcoin? Using Bitcoin, you can transfer money 24/7 without any problems.
What is the Purpose of Use of Bitcoin? It can be used in most areas as it is a digital currency accepted by hundreds of thousands of companies today. Even tech giants have begun to accept this digital currency.
What is Altcoin? Altcoins that come out as an alternative to Bitcoin are not as valuable as Bitcoin, but can be used as an investment tool as well as for money transfer.
What is Bitcoin Mining? It is one of the ways to get bitcoin. Bitcoin can be obtained using various hardware and software. However, this is not as easy as it seems.
How to Buy and Sell Bitcoin? If you own Bitcoin, you can buy and sell your digital money through various Bitcoin exchanges.
How Many Bitcoins Can Be Produced? The person or persons who developed Bitcoin put a limit on Bitcoin production. This limit is 21 million, and once 21 million Bitcoins are produced, there will be no new Bitcoin production.
How many Bitcoins have been produced so far? The answer to this question is 18.443.043. In other words, we can say that the amount of Bitcoin that can be mined by Bitcoin mining is close to 2.5 million.

What are the Advantages of Bitcoin?

In the second step of our Bitcoin Guide article, we will talk about the advantages of Bitcoin. We are talking about a market of billions of dollars. That’s exactly why Bitcoin comes with so many advantages. So what are these advantages?

In Bitcoin, only you are responsible for your digital money. So nobody can control your money. You can also send money to any country at any time. You can send Bitcoin from one account to another, including holidays.

Since it does not have a physical structure, it does not cause as much expense as in the traditional monetary system. Coins issued by central banks in real currencies cause costs to states due to the expenditures made for storage, transportation security and custody. Even in the United States, such storage transport and so on. 60 billion dollars are spent annually for such situations. It’s quite a lot.

It is easy to store Bitcoin and keep it safe. You can store your digital money worth thousands of liras in an application on your phone or by using hardware wallets. Hardware wallets are physical devices that generally resemble a USB stick.

As it is known, the value of currencies such as Dollar, TL and EURO can change with the policies of the states. Because these currencies are linked to a state, but Bitcoin is not tied to any formation. For this very reason, Bitcoin is not affected by wrong government policies.

Inflation risk is low. One of the reasons for inflation is the increase in the money supply. However, the Bitcoin network is not endless. 21 million Bitcoins can be produced and it becomes harder to produce Bitcoins every 4 years. The term Halving is used to explain this situation. If you want to get information about Halving, you can click. What is Halving?

Bitcoin Disadvantages

We counted many advantages of Bitcoin, but if we were writing a Bitcoin Guide, it would not be if we did not mention the disadvantages. So what are these? Bitcoin is not completely anonymous. In other words, Bitcoin transactions are kept in the Bitcoin network in a way that can be seen by everyone. As you can understand, transactions made by users are visible to everyone, but their identities are hidden.

For example, in recent months, many famous names have been hacked on Twitter. From these accounts, the addresses of various Bitcoin wallets were shared and a Bitcoin transfer was requested there. The money transferred to these accounts was in a state that could be seen by the whole world. So it was obvious how much money went to the addresses. So how can you get rid of this situation? To protect your privacy, you can use a different Bitcoin address for each transfer. However, you can use different Bitcoin wallets for different payments.

See Also
Bitcoin Rises Again After Hard Fall

One of the disadvantages is the rate at which people use this digital currency. Although the number of people using Bitcoin today seems to be high, a large part of the world population is unaware of Bitcoin. For this reason, it is not possible to use Bitcoin, which is one of the crypto money, in every field. However, you can find information about this in the paragraph below.

Is Bitcoin Legal?

It has not yet received a crypto regulations regarding money in Turkey. For this reason, we cannot say that the purchase or sale of crypto money is illegal. We will share our comprehensive article about this in the coming days.

What Can Be Done With Bitcoin? Where Is Bitcoin Used?
Experts did not lean towards this digital currency system, which was seen for the first time in the world when Bitcoin was first released or when its popularity increased. It was even stated by many experts that Bitcoin will crash and see the 0 level. However, such a thing is unlikely to occur. In fact, many technology giant companies have also implemented bitcoin payments. So you can do many things with Bitcoin. If you own Bitcoin, you can use it by trading Bitcoin exchanges and making a profit or as a long-term investment tool.

You can also send your digital money to anywhere in the world without any problems. In fact, it becomes quite logical to transfer money with Bitcoin due to the charging policies applied by banks for money transfer.

When we went 5 years ago, the number of companies that accepted payments with Bitcoin exceeded 100,000. In fact, we know some of these companies very well. Technology giants such as PayPal, Microsoft, Dell, Zynga are among the companies that accept Bitcoin. There are even cafes and similar places that receive payments with Bitcoin these days.

What is Altcoin?

What is Altcoin in our Bitcoin Guide article? It would not pass without answering the question. Crypto coins, which have different algorithm structures from Bitcoin, are called “Alternative Coin”. In other words, we can call all cryptocurrencies except Bitcoin as “altcoin”. Due to its shortening, it took the name Altcoin. There are thousands of altcoins, but almost none of them have reached the price level of Bitcoin. Of course, not being able to reach the Bitcoin level does not mean that these digital currencies are worthless. In addition, according to the data we have obtained, there are 5,537 digital currencies in the market until June 3, 2020.

So why was altcoin needed? We can say that the energy spent to produce bitcoin, increasing difficulties and the cost of Bitcoin caused these coins to emerge. In addition, these alternative coins have different algorithm structures than Bitcoin. Since Bitcoin was offered to the whole world with open source code, these altcoins also benefited from Bitcoin when they emerged.

The first digital currency that we can call Altcoin is Namecoin. Like Bitcon, Namecoin has a 21 million generation limit. Another altcoin available in the market is Litecoin. Litecoin’s production limit is 84 million.

What is Bitcoin Mining? How is it done?

There are 3 ways to own Bitcoin. One of them is Bitcoin mining. The other two are to register to a Bitcoin exchange or to accept Bitcoin as a result of any service. > How to Open a Bitcoin Account?

The part we will talk about in our Bitcoin Guide article will be Bitcoin mining. So what is this Bitcoin mining? The production of Bitcoin with the processing power of electronic devices (such as computers, Bitcoin mining devices) is called Bitcoin mining. The second question is, how is Bitcoin mining done? We can say that mining Bitcoin is more difficult than in the past. Because, while creating Bitcoin, Satoshi Nakamoto has created a system where the more participation in mining, the more difficult the extraction difficulty will be. Increasing participation in Bitcoin mining also means increasing the security of the Bitcoin network. The more people mine Bitcoin, the more secure Bitcoin will be. You can think of Bitcoin as gold. Just like gold, there is a limit in Bitcoin. To have more detailed information about Bitcoin mining, we can take a look at our other articles.

Where Can You Buy and Sell Bitcoin?

As we said above, you can use Bitcoin as an investment tool. You can make a profit by focusing on instant movements and trading, or you can earn a profit by owning Bitcoin in the long term. But remember, you may suffer as much loss as you can make a profit. Gold, dollar, stock, etc. Just as there is a stock exchange with investment instruments, Bitcoin also has exchanges. Yes, at this point, the answer to the question of How to Buy Bitcoin lies. To summarize. By signing up for one of the trusted Bitcoin exchanges, you need to verify your membership profile. You will then be asked to add money to your exchange account.

You can open a membership in the exchanges mentioned below. However, as soon as you open the membership, you cannot make transactions. After creating your account, you need to get confirmation. For this, sites ask you for information in the form of identity, invoice or address information. Then you go to the approval phase of your account.

The list we prepared includes Turkish Bitcoin exchanges and foreign Bitcoin exchanges. The minimum amount of money and other trading instructions you need to invest in the stock market in Turkey can vary.

In addition, every person registered to Bitcoin does not need to buy 1 BTC. This can change according to your wishes. Remember, if you want, you can buy 10 thousand liras of Bitcoin if you want.

Bitcoin Exchanges You Can Trade and Use Abroad

Binance
Bittrex
Cex.io
Poloniex
Bitfinex
Coinbase
Kraken

How to Open a Bitcoin Account?

One of the most frequently asked questions by those who want to learn about Bitcoin is “How to Open a Bitcoin Account?” To tell the truth, an account in the form of a Bitcoin account unfortunately does not exist. What people call Bitcoin accounts are exchanges where people buy and sell their digital money through Bitcoin exchanges. For this reason, the accounts you open from the Bitcoin exchanges mentioned above can be considered as Bitcoin accounts.


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