What is Bitcoin? Bitcoin explained Bitcoin in detail On the cryptocurrency website, we cover everything related to cryptocurrency with detailed explanations and articles on the most important concepts related to this young and open field.
In this article we will discuss:
What is Bitcoin? How does Bitcoin work? Where does Bitcoin get its value from? How Bitcoin started.
Who Invented Bitcoin? How to earn bitcoin.
Bitcoin is a digital currency created in January 2009.
It comes from the ideas in the white paper of the mysterious programmer and alias "Satoshi Nakamoto", whose true identity has not yet been confirmed.
Bitcoin promises lower transaction fees compared to traditional online payment mechanisms and is handled by a decentralized authority, unlike state-issued currencies.
There is no physical Bitcoin, only the balances in the blockchain ledger (in digital form), which - along with all Bitcoin transactions - are confirmed with enormous computing power.
Currencies are not issued or supported by any banks or governments, and individual currencies are not raw.
Although anonymous and non-partisan, Bitcoin is growing in popularity day by day, leading to the release of hundreds of other virtual currencies collectively known as "Altcoins".
According to another definition, Bitcoin is a kind of cryptocurrency.
Bitcoin token balances are maintained by public and private "keys", which are long chains of numbers and letters linked by the mathematical cryptographic algorithm used to create these tokens.
The public key (comparable to a bank account number) acts as a postal address to the world to which others can send bitcoins.
The private key (similar to a PIN ATM) must be kept secret and used only to authorize Bitcoin transfers.
Bitcoin keys should not be confused with a bitcoin wallet. The Bitcoin key facilitates Bitcoin trading and allows users to track holdings of cryptocurrencies.
While the term "wallet" is a bit misleading, it is assumed and common, because the decentralized nature of Bitcoin means that it is never stored in a wallet but decentralized to blockchain.
Note! According to the Bitcoin Foundation, which sponsors the Bitcoin logo, a logo similar to other currencies has been awarded as follows:
Bitcoin logo
With the abbreviation of Bitcoin as "BTC".
Here's how Bitcoin works: Bitcoin was one of the first digital currencies to use peer-to-peer technology to facilitate instant payments.
Individuals and independent companies that have the computing power to participate in the Bitcoin network, also known as "miners", are motivated by rewards (new issue of Bitcoin) and transaction fees paid in Bitcoin.
These miners can be seen as the decentralized authority that dictates the reliability of the Bitcoin network.
New Bitcoin is issued to miners at a constant rate, but these rewards are regularly reduced.
In fact, 18 million Bitcoin units are extracted from the estimated total asset of 21 million Bitcoins.
Currently, there are approximately 3 million Bitcoins that do not yet need to be mined.
This is how Bitcoin or any other cryptocurrency created by a similar process works.
This means that cryptocurrencies work differently than fiat currencies.
There in the central bank systems, the currency is liberalized at a rate that matches commodity growth in order to maintain price stability, while a decentralized system such as Bitcoin determines the issue price as soon as possible. beginning according to a predefined algorithm.
Bitcoin mining is the process by which Bitcoins are released and put into circulation.
Usually, mining requires solving mathematically complex puzzles to discover a new block that is being added to the blockchain.
In the blockchain grant, the miner adds and verifies the transaction records in the network.
To add blocks to the blockchain, miners receive a reward in the form of Bitcoins, while this bonus is halved every 210,000 blocks.
The bonus for discovering a new block was 50 Bitcoin in 2009 and is currently 12. 5.
It is expected to be halved in May 2020 to become 6. 25 Bitcoin.
As more and more bitcoins are created, the mining process becomes more difficult, ie. the amount of calculated force.
The mining difficulty started with the Bitcoin debut in 2009, but it was much easier than now.
In October 2019, the mining crisis passed 12 trillion times,
Because the extraction process required a standard desktop computer.
Now the difficulty has increased exponentially, as miners have to use expensive and complex hardware such as application-specific integrated circuits (ASICs) and more advanced processing units such as graphics processor units (GPUs).
These complex mining assistants are known as "mining platforms".
One Bitcoin is divisible by eight decimal places (100 million bitcoins one), and this smaller unit is called Satoshi.
If necessary, and if the participating miners agree to the change, Bitcoin can optionally be made divisible by a larger number of decimals.
Where does Bitcoin get its value from? In 2017 alone, the price of bitcoin fell from less than $ 1,000 at the beginning of the year to the end of the year by over $ 19,000 and ended the year by over 1,400%.
Recently, the value of the cryptocurrency has fallen and fallen more or less, that is, it has fluctuated in value.
In October 2019, Bitcoin seems to have found a new price in the range of 8,000 to 9,000 dollars.
The price of Bitcoin depends on credit
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