What is Bitcoin?
After the 2008 crisis, the person named Satoshi Nakamato published their technical articles on Bitcoin, an end-to-end electronic payment system. Thus, Bitcoin emerged as a decentralized, tertiary tamper-proof cryptocurrency. It came into use as a public network in 2009. Subsequently, Bitcoin was named “1st generation blockchain” as the first successful cryptocurrency.
While it is possible to track transactions entering the Bitcoin network, it is impossible to find out who made the transaction. Transactions approved on the Bitcoin Blockchain network are irreversible due to their chain structure and these transactions cannot be changed.
How is Bitcoin used?
To buy or use Bitcoin, a virtual wallet must be created. Thanks to the addresses of these wallets, you can exchange and shop cryptocurrencies. The Bitcoin transfer transaction is signed and sent with asymmetric encryption. Each of the transactions is announced on the network and joins the blockchain, the chain. In this way, it is prevented from using the same Bitcoin more than once.
How is Bitcoin converted into cash?
To use cryptocurrencies for cash, sales can be made through exchanges. Likewise, Bitcoins are also sold on the stock exchange and the real amount of money is sent to individuals by EFT or money order.
Is Bitcoin Anonymous?
It would not be correct to say that Bitcoin is completely anonymous. Instead, it can be defined as semi-anonymous. In the traditional finance system, users have to declare their identity. It is not possible to transfer money anonymously through banks. However, Bitcoin users do not have to give their names, as they can send money directly to each other, regardless of a central authority.
The only information that users declare in the name of identity in this process is their unique wallet code. One of the parties can provide direct shipping to the other party using this wallet code. However, it is important to note that these wallets can be easily tracked. Using bitcoin will not give you the right to break any law, and you can easily get caught in the radar of the security forces in such an attempt.
How to Buy Bitcoin?
One of the easiest ways to buy bitcoin is through cryptocurrency trading platforms. Today, almost all of the platforms comply with KYC (Know Your Costumer) and AML (Anti-Money Laundering) principles. In line with these principles, users must declare their identity information when registering on cryptocurrency trading platforms. Some of the platforms allow users to make Bitcoin transactions by not exceeding certain limits without revealing their identity information to their users.
Buying Bitcoin through cryptocurrency trading platforms is an extremely easy process. You can easily subscribe to BtcTurk, transfer Turkish Lira through banks and payment institutions and receive Bitcoin.
Will Bitcoin replace paper money?
Bitcoin virtual currency; however, whether it will replace paper money has been debated for a while. It is obviously a currency to be taken seriously; however, it is a bit unrealistic to think that it will replace paper money.
ADVANTAGES OF USING BITCOIN
Inflation risk is low: One of the effects causing inflation is the increase in real money supplies in circulation. Increasing the money supply in circulation increases in direct proportion to inflation. However, this system does not apply to Bitcoin. Because the Bitcoin system is a system with an end. As of its technical design, a maximum of 21 million Bitcoins can be produced. Therefore, the inflation risk of Bitcoin is very low.
Low Risk of Collapse:
The collapse of real currencies is caused by hyperinflation due to governments. Since the Bitcoin system is also not dependent on any government, the risk of collapse is extremely low.
Easy to Carry:
You can carry billions of dollars worth of bitcoins on a small memory card. I guess it’s impossible to do this with cash or any other system.
Cannot be Traced:
There are obviously disadvantages as well as advantages of Bitcoins being untraceable or leaving no traces. For example, how much financial resources you have in your Bitcoin system or other information about your account cannot be known and tracked by anyone, including governments. Therefore, you will prevent governments from coveting your finances (tax).