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What Is Bitcoin (BTC)?

Project Name: Bitcoin

Project Ticker: BTC

Website: bitcoin.org/tr

Twitter Account: twitter.com/Bitcoin

Whitepaper: bitcoin.org/bitcoin.pdf

Date of Issue: 2008

Maximum Supply: 21.000.000

What Is Bitcoin (BTC)?

Bitcoin, the first cryptocurrency, was launched in 2008 with an academic paper by “Satoshi Nakamoto”, whose real identity is still unknown today. Bitcoin has attracted a lot of attention because the article suggested that thanks to Blockchain Technology, people can interact financially among themselves without the need for a central authority. The ability to transact without the need for traditional financial institutions such as banks or government intermediation is one of the other factors that has made Bitcoin popular. The ticker of Bitcoin is BTC.

Bitcoin uses Blockchain Technology. We can define blockchain as a database consisting of a series of blocks. These blocks contain transaction data and are linked together so that a change made in one block affects other blocks. A process known as Bitcoin mining is used to run the Bitcoin network. In the process, computers solve complex math problems, and miners are rewarded by the network.

What Does Bitcoin Offer?

As a cryptocurrency, Bitcoin has become increasingly popular worldwide. Bitcoin offers many advantages to users, one of them being privacy. Bitcoin transactions are executed using Blockchain Technology, and while transactions are securely and transparently stored, user identities are kept hidden. Blockchain Technology brings with it decentralization. Bitcoin is not under control of any central authority. That means there is no need for intermediaries such as banks or other financial institutions for users to make transactions. However, it is important to do proper research and understand the potential risks before investing in Bitcoin.

Bitcoin’s Technology

Blockchain is a structure in which every data to be processed is encrypted and stored in a structure called a block at certain intervals, in each new block there is a summary of the previous block, and all this data is stored in more than one data storage point.

The concept of blockchain today came into our lives for the first time in 1991 when Stuart Haber and W. Scott Stornetta time-stamped important documents to prevent changes in the dates of the documents. The main purpose was to create an unchangeable document without the need for an external approval such as a notary public. In order to improve the efficiency of this system, a more reliable encryption system, Merkle Trees, was created in 1997, in which codes are processed into each other to generate the next codes. Merkle Trees is an encryption system developed to verify the data in the system faster. It stores the data of the previous transaction at each stage and requires much less memory since it stores all processes in the last stage called root. The system, which was powered by Merkle Trees, remained functional until Satoshi Nakamoto introduced Bitcoin technology in 2008. All transactions that take place on the blockchain are encrypted and recorded in the same way on all computers in the system. All points where blockchain records are distributed remain in communication among themselves and verify that the system is working smoothly. These records are processed into each other at regular intervals to form blocks.

Who Created Bitcoin?

The creator or creators of Bitcoin kept their identity a secret by using the pseudonym “Satoshi Nakamoto”. Bitcoin is an open-source project, and the Bitcoin development team consists of a large community. Developers are constantly improving Bitcoin to make it safer, more scalable, and convenient by adding new features. Bitcoin has an open-minded and innovative community. Community members come together and support each other to contribute to the development of Bitcoin. We can also say that the Bitcoin community is passionate about Bitcoin's philosophy and values.

Bitcoin’s Digital Asset Economy

Having a limited supply is one of Bitcoin’s unique features. Bitcoin has a limited supply of 21 million, and when this number is reached, there won’t be any more Bitcoin generated. The supply of Bitcoin is provided by a process called mining. With mining, computers solve complex math problems and validate blocks. When the validation process is completed, blocks are added to the blockchain. Bitcoin miners earn rewards for each block in return for working on the block validation process. Bitcoin Halving is a process to halve Bitcoin mining rewards. The first halving took place in 2012, and the miners' reward dropped from 50 BTC to 25 BTC. The second halving took place in 2016, and the miners' reward dropped from 25 BTC to 12.5 BTC. The third halving took place in 2020, and the miners' reward dropped from 12.5 BTC to 6.25 BTC. Halving timings allow for a slow release of the predetermined supply of Bitcoin.