What is Bitcoin (BTC)?

Website: https://bitcoin.org/tr/

Maximum Supply: 21,000,000 BTC

Circulating Supply: 18,693,525 BTC

Total Supply: 18,693,525 BTC

Explorer: Bitcoin Explorer

Whitepaper: Bitcoin Whitepaper

What is Bitcoin (BTC)?

Bitcoin is a completely decentralized digital cryptocurrency. Unlike US dollars, which you can hold in your hand or in your bank account, there is no central authority or decentralized payment system that controls Bitcoin. Instead, Bitcoin operates on a peer-to-peer (P2P) network that allows people from all over the world to send and receive Bitcoin to each other, without an intermediary such as a bank, central bank, or payment centre.

Although there are thousands of cryptocurrencies listed on CMC today, we can say that Bitcoin is the first cryptocurrency in the world. A person or group using the pseudonym “Satoshi Nakamoto” published the now world-famous Bitcoin article on October 31, 2008.

The first line of the article states: “The fully peer-to-peer version of e-money allows online payments to be sent directly from one party to another without the intermediary of a financial institution.”

It is known that the Bitcoin network became operational as of January 3, 2009 and started the crypto currency revolution.

How Does Bitcoin Work?

As a fully decentralized digital currency, Bitcoin is unlike any other entity before it.

Before the digital age, everyone traded in physical forms of money. This process began with livestock and salt, continued with silver and gold, and continued with paper money. The “digitalization” of money has only just begun, allowing bank accounts to be moved online. Thus, many online payment platforms such as PayPal and Square, which are used without thinking today, have emerged.

However, all these "digital transactions" need a central system to continue their activities. Your bank or financial services such as PayPal are responsible for keeping user accounts constantly up-to-date and ensuring that the counts are accurate. These systems represent the decentralized form of digital money.

Bitcoin has revolutionized the digital currency industry by decentralizing the clearing process. Bitcoin uses a system where account balances and transactions are shared with users all over the world in a pseudonymous manner, instead of a centralized structure that ensures consistency at all times in transactions between users. To put it simply, anyone who wants to take part in the Bitcoin protocol has the right to download the free and open source software and join this network.

As a Bitcoin user, all you need to know to send someone Bitcoin is their Bitcoin address (this information consists of a series of letters and numbers, not the recipient's name or any personal information!). By sending the Bitcoin you own to an address, you are actually broadcasting your transaction on the Bitcoin network using blockchain technology (more on this later) (Hello, I am Ayşe, I am sending 1 BTC to Ali). Since the Bitcoin network keeps track of the most up-to-date version of Alice's wallet balance, the system checks her wallet balance (For example, Anne has 2 BTC in her wallet, so she can send 1 BTC to Ali) and completes the transaction. 

How to Store Bitcoin?

There are many different ways to store bitcoin.

1.You can keep it on the Bitcoin exchange.

There are many different Bitcoin exchanges available all over the world. All of these exchanges allow you to sell Bitcoin for other cryptocurrencies (altcoins) or government currencies (USD, EUR, GBP etc.). At the same time, these exchanges store your BTC assets on your behalf. Keeping them safe also becomes the job of the stock market. There have also been cases where cryptocurrency exchanges were hacked or lost their customers' BTCs; so if you are looking for an exchange to entrust your crypto assets, you need to do your research well. You can visit our market page for the latest list of exchanges and trading pairs for this cryptocurrency.

2.You can store it in your Bitcoin wallet.

Instead of keeping your Bitcoin on a crypto exchange, you can alternatively keep it in a Bitcoin wallet. Wallets are divided into two, these are cold wallet and hot wallet. Hot wallets consist of software that works connected to the internet, that is, keeps Bitcoin online. Although hot wallets are more convenient and convenient for transactions, they may seem logically weaker against future attacks because they remain connected to the internet.

Cold wallets are wallets that are not “online”. It is not possible for hackers to access such cold storage tools over the internet. Therefore, cold wallets are much less likely to be hacked. On the other hand, these types of wallets are more laborious and troublesome for the user, as there is a fee to own and use requires technical knowledge. Examples of cold wallets are hardware-based wallets and paper wallets.