Bitcoin, the most recognized virtual currency in the world, is preparing to enter its tenth year.
On October 31, 2008, Bitcoin: The Electronic Cash Payment System from Peer to Peer was used for the first time in the Bitcoin concept. The article’s owner is known as Satoshi Nakamoto, but there is no clear information about the author’s identity.
In 2008, Bitcoin became active in January 2009 in response to global banking and the economic crisis, which was felt strongly in the world.
In October 2009, a Bitcoin was worth $ 0.001, but today it is sold at $ 6,402. However, the fluctuations in the value of Bitcoin are also remarkable.
The boom period for Bitcoin occurred in the last quarter of 2017. Bitcoin, which had made significant records since mid-November, managed to exceed $ 20,000 in December 2017.
What is Bitcoin?
Bitcoin has two basic features: digital, a virtual currency bonus that does not actually exist. The second one is to see the future as an alternative currency.
Moreover, in the world of the internet is more valued than the coins in our pocket and paper money.
Another feature is that it cannot be printed by governments or traditional banks.
Bitcoin has been introduced in a growing number of sectors, from the IT world to the telecom, including Expedia and Microsoft.
How did Bitcoin come out?
It is known that Bitcoin was discovered in 2008 by a user using the name Satoshi Nakamoto. However, the creator of Bitcoin can be a person or a group or a system.
The Bitcoin was bought first only due to the curiosity that it was so cheap at the time it first came out, but then there were many people who made serious profits through this investment.
How does Bitcoin’s value is determined?
Except for some exceptional products such as water and gold on the market, the value of Bitcoin is determined in terms of supply and demand by taking into account the need and quantity ratio. When the demand increases, the price increases; and when the demand decreases and the value decreases.
There are limited amounts of Bitcoin in the circulation and as the demand increases, the value of the Bitcoin currency increases.
How is Bitcoin used?
You can buy and sell money, make money transfers or even shop with one or more virtual wallets that you create without having to provide your personal information.
There are shops and restaurants in the world that use Bitcoin. You can spend your bitcoins at these points.
Paypal also recognized Bitcoin as a payment system. Therefore it is possible to pay with Bitcoin via Paypal.
Advantages and disadvantages of Bitcoin
There are other reasons for the investors to choose this currency as well as the ups and downs of Bitcoin.
One of the main reasons for the extreme demand for Bitcoin is the confidentiality of transactions. Records are not likely to be lost as transactions are recorded at different points in a distributed system. However, due to the nature of the program, how much Bitcoin is owned or what kind of transactions with Bitcoin is completely hidden.
However, those who did not want to pay tax to the state and those who wanted to clear the money earned by illegal means turned to this new encrypted currency. In fact, Bitcoin’s more money used to launder his rhetoric, perhaps other features to prevent a negative image about itself can create.