Bitcoin is the first of the decentralized digital currencies that emerged in 2009, eliminating the need for traditional intermediaries such as banks and governments to conduct financial transactions.

It was created by a still unknown person using the pseudonym Satoshi Nakamoto.

He saw the disadvantages of the current global monetary system and found this system.

Regarding Bitcoin and crypto money, he stated the following.

What is needed is an electronic payment system based on cryptographic (encrypted) evidence rather than trust, and is built to allow two parties to transact directly with each other without the need for a trusted third party.

Satoshi Nakamoto created a new electronic cash system with no servers or central authority, after developing the technology, he passed on the source code to others in the Bitcoin community and disappeared in 2011.

How is Bitcoin Working Logic ?

As we mentioned, the owners of digital currencies are anonymous, as there is no government, institution (such as a bank) or other authority that controls Bitcoin. Instead of using names, tax numbers ..etc, Bitcoin connects buyers and sellers via encryption keys.

What is Blockchain ?

When someone sends Bitcoin to someone else, the network (all miners) stores that transaction and all other transactions made within a certain period of time in a "block" after the confirmation and encryption process. Computers (miners) running special software record these transactions in a huge digital ledger. These blocks are collectively called the blockchain. After this process, Bitcoins are presented to the miners as a reward.

What Determines Bitcoin Price ?

Supply and demand determine the value of Bitcoin. Depending on the increase or decrease in demand, it has an impact on the price of the cryptocurrency. Since there is no other factor, there is a lot of fluctuation in its price or value. In this case, it means that it is extremely open to speculation.

Bitcoin, which was not very valuable for a long time, exceeded the $ 1000 limit on January 1, 2017, and in December of the same year, its value increased to $ 19,000. Then its value quickly fell by half.

Bitcoin Pros

Once you have Bitcoin, you can transfer it anytime, anywhere, reducing the time and possible expense of any transaction. Transactions do not contain personal information such as a name or credit card number, which eliminates the risk of fraudulent purchases or identity theft.

Some investors who buy and hold this currency with great growth potential think that when Bitcoin becomes widespread, more trust and more widespread use will come, and therefore the value of Bitcoin will increase.

The absence of traditional banks or government intermediaries minimizes its exposure to financial crisis and economic recession.

Bitcoin Cons

Price fluctuations can be very high as it is open to speculation. That's why many experts recommend that your investment in Bitcoin be at a certain level.

Although the blockchain technology behind Bitcoin is said to be more secure than traditional electronic money transfers, Bitcoin wallets are an attractive target for hackers. Therefore, personal accounts are at risk of being hacked.