What is Bitcoin?
Announced in 2008 with a manifesto written by Satoshi Nakamoto; Became functional on January 3, 2009; Bitcoin, used with the symbol ve and the abbreviation BTC, is a digital currency that does not belong to any central bank or official institution. The maximum number of Bitcoin determined by Nakamoto, who designed the system, is limited to 21 million. This digital currency, which is not owned by any country, cannot be taxed or registered. In order to get more information about Bitcoin, we recommend that you read the White Paper, which is considered the Bitcoin manifest.
How Does the Bitcoin Transfer System Work?
Any BTC transactions performed on the network are recorded in order not to be changed and deleted again. The transaction belonging to any BTC address and the balance obtained from these transactions are recorded visibly by all users. While all this is happening, the user does not have to openly share them personal information in the system. In general, it is possible to operate anonymously at the request of the users.
Technical Features of Bitcoin
Bitcoin user can transfer BTC to any location provided that it is within the network. It is not possible to change or cancel the transactions. Processes take place in seconds; approval by the system varies between 10 minutes and 1 hour. Bitcoin can be divided up to 8 decimal digits. So, a Bitcoin can be transferred in pieces. The transaction cost is either very cheap or free. This is one of the most important aspects that makes Bitcoin advantageous outside the existing system.
How to Make Bitcoin Mining?
Bitcoin Mining is a branch where anyone who wants to be a miner can easily participate, encountering an increasing demand from the date of release. As part of the proof of work, Bitcoin miners create blocks with varying difficulty and submit this block for approval. The proven of work is added to the end of the chain. Block creation is done every 10 minutes. The miner, whose work is proven and whose block is made in the chain, given a Bitcoin as reward. If a block that resolves in less than 10 minutes occurs, it is detected by the system and the difficulty of the block resolution is increased. While Bitcoin mining was done through personal computers at the beginning, today there are some devices produced for mining. These devices increased the electricity consumption and became more noisy machines; however, it is also professionalized to solve mathematical operations.
Due to the increase in electricity consumption and device cost, two kinds of solutions have been produced. The first is that miners work together by collectively creating a pool. Another method is Bitcoin Cloud Mining. System and hardware are rented from an institution that performs Bitcoin mining in cloud mining. Thus, the operating leased company produces Bitcoin for a certain period of time for the investor at a fixed price.