All About Bitcoin [COMPREHENSIVE GUIDE]

Growth Hack Life
May 20 · 8 min read

What is Bitcoin?

The creator of Bitcoin, Satoshi Nakamoto describes Bitcoin as “Electronic Cash System from Peer to Peer” in a 2009 article about Bitcoin’s roadmap. This is the most accurate and simple definition of Bitcoin.

Definition of Bitcoin

Ok but, again, what is Bitcoin?

Bitcoin is a consensus network that is a new payment system with all-digital money. This payment network, which is a decentralized, peer-to-peer payment system, does not have a central authority or intermediary institution. Blockchain, which is also the underlying technology of Bitcoin, is the most important recording system to date.

We can define Bitcoin in many ways such as digital cash, crypto money, international payment network and internet money. In what way we define it, Bitcoin is a revolution that will change the way everyone looks at money and how money is used.

Peer to Peer System (P2P)

The beauty of Bitcoin is that there is no need for any central server or third parties to perform operations. Unlike credit card transactions that can take weeks or months to finish, all Bitcoin transactions take place in a very short time, from peer to peer (peer to peer).

What is Blockchain?

All Bitcoin transactions are permanently stored on the distributed registry, called defter Blockchain Tüm. This notebook is shared between all Bitcoin miners and nodes (nodes) and is open to everyone. Miners and nodes verify operations and secure the network. Miners build a block approximately every 10 minutes and receive a BTC award for the electricity they spend on doing so. (This is 12.5 BTC for the time being.)

How Many Bitcoins are There?

According to the protocol prepared by Nakamoto, the number of Bitcoins is limited to 21 million. So there is no amount of Bitcoin that can be removed forever. This means that central banks, individuals or governments cannot produce Bitcoin at any time. From this point of view, Bitcoin is a deflated currency and is likely to gain value as a standalone entity.

Why is Bitcoin Important?

Besides that, Bitcoin is still seen as an experiment in economy and technology. As in the Internet in 1995, the potential and applications of Bitcoin have not yet been fully explored. Is Bitcoin only an electronic money? Is it a basis for smart contracts and electronic shares? Is it a useful case for the underground world, or does it challenge the power of governments? Or will it be integrated into the main stream finance scheme and will be lost without being noticed? If you know the answer to at least one of these questions, or how to take advantage of it, you can also make huge gains in the field of crypto money.

So, Bitcoin is…

Digital currency. There is no physical equivalent, gold and silver etc. as,
Bitcoin is a network interaction. There is no center. Provides digital money transfer from A to B,
It can be transferred to any point where there is internet,
There is no broker, broker. Charges are too low because they don’t have a tool. Only miners who approve the transfer are paid in very small amounts,
Bitcoin is written in open-source code and is open to everyone. The owner of the system is anyone who uses it,
It is used in all countries and cannot interfere with your offline account. In this respect, it is safer than Swiss banks,
There are no limiters, such as terms of use, limitation agreements or terms,
Bitcoins are produced by mining equipment,
Bitcoins to be produced have a certain number limit. 21 million pieces will be produced in total,
In order to control production speed and inflation, the ”difficulty level ı increases day by day through specific protocols. These levels are determined by the production density on the network,
Each user has a digital wallet. Keep your Bitcoins in these wallets,
Your Bitcoin transfers are signed with a unique signature and are confirmed by the miners in order to check their accuracy and uniqueness. So the same bitcoin can not be used a second time,
With Bitcoin, you don’t pay any extra to sell products. You are not asked for any preconditions,
Bitcoin; It can be converted into many currencies such as USD and EURO. (The sites that do this take a commission),
With Qr code applications you can easily make mobile payments,
Bitcoin exchanges do not stop on weekends or holidays, they always work 7/24 365 days.

Why to Use Bitcoin?

Here’s the million-dollar question! There’s probably a ton of answers about that. Are you under the influence of money and technology? Do you want to push the limits of money and join one of the greatest economic experiences of the last century?
Sometimes, “Bitcoin is great! But you can’t use it every morning to get your coffee. This discourse means that it is not really thought about how money is used in different ways by people around the world. Also people have already started to use Bitcoin to get their morning coffee.

Are you unreliable by the current international banking system because you are living in the developing economy or working for overseas customers? Are you under 18 or are you working in credit card companies or in an industry not approved by PayPal? Did you ever have to pay more than $ 50 for international money transfers to send to your loved ones because of accidental errors? Here is a great solution for all these issues of Bitcoin.

If you are a business owner who accepts Bitcoin, it is not important that you own an Internet business or store business, and your transactions are much faster and cheaper than credit cards or other payment systems. Moreover, in this technology, both wages are lower and there is no risk of fraud.

In addition to these advantages, you want to make a different investment or read something about the current state money and central banks and you want to take control of your own money. Bitcoin will also allow you to do this.

Why is Bitcoin Safe?

Bitcoin and Blockchain work with three fundamental principles of technological freedom: centrality, open source code, and peer-to-peer technology.

Blockchain, which works with these three principles and forms the basis of Bitcoin, is a revised integrity system. In addition, Bitcoin is based on mathematical algorithms, encryption and numbers to ensure security. In other words, when a Bitcoin transaction is performed, only mathematics is relied upon instead of intermediary institutions or states.

What is Bitcoin Mining?

Bitcoin mining; is the digital form of gold mining. The process is performed by processors who are specialized in solving algorithmic equations and hash functions. Solving these problems helps miners to approve network transfers and create new transaction blocks.
In addition, Bitcoin mining earns a Bitcoin award for the endorsement of the transactions in the Blockchain. Miners incorporate the new Bitcoins into the network and secure the system with transaction approval. They are also rewarded with additional network fees for each Bitcoin they have issued.

What is Cloud Mining?

Cloud (or remote) mining is the digging of crypto money (eg, Bitcoin, Ethereumor Litecoin) made using remote hardware power. The fact that this mining model has been formed has increased the mining hash difficulty and therefore the bitcoin hash difficulty that mining enthusiasts have made in the home environment are no longer profitable.

Cloud mining allows people to launch crypto money mining without investing in big money or without any technical knowledge. Although the cloud mining model is simple, it is useful to note some details, especially the remote mining model in two different ways: hosting mining and cloud mining.

Read our guide about Cloud Mining and service comparisons.

How to Buy Bitcoin?

Bitcoin can be purchased in a variety of ways. Bitcoin can be purchased by credit card or bank transfer from exchanges or other intermediary service providers. In addition, some of the stock exchange and brokerage companies also offer buying Bitcoin with PayPal.

A Guide for Buying Bitcoin With Credit Card

It can also be purchased using services such as LocalBitcoins or via Bitcoin Teller Machines (BTM), which is similar to ATMs around the world.

How to Sell Bitcoin?

Bitcoin can be sold in various ways. This is almost the same as the purchase. The most commonly used method is to execute a bitcoin sales order in a stock exchange on the internet. Please read our guide to sell your Bitcoins.

In addition to these options, it is possible to use two-way Bitcoin ATMs around the world. Two-way Bitcoin ATMs are also capable of performing Bitcoin as well as Bitcoin reselling. Some Bitcoin ATMs can request authentication.

Bitcoin can also be sold using services such as LocalBitcoins.

Is there a thing like FREE BITCOIN?

Surprisingly, yes you can earn free Bitcoins. Not in a big amounts though. But here is our article about how to earn free Bitcoin.

What is a Bitcoin Wallet?

As the name suggests, the Bitcoin wallet is an application for storing, sending and receiving Bitcoins. You can think of it as a wallet full of physical cash and basically all you need to use Bitcoin is this.
The most common wallets are wallets used in smartphones. These wallets use the phone’s camera to scan QR codes to save the user from the trouble of copying / pasting long Bitcoin addresses. These wallets have a desktop version or browser-based ones. As a result, the interfaces for users are similar; however, options such as private keys, applications processing, and user privacy may vary. In some applications, location-based Bitcoin business guides, stock market links, secure storage applications, altcoin prices, such as value-adding features are available.

Some wallets have centralized servers. In other words, it is enough for users to create their accounts with a username (usually an e-mail address) and a password. They may be less private and more vulnerable to hackers. However, if a user uses a central wallet and forgets the password, the account can usually be recovered.

Other wallets store all the information and private keys found on the device itself. Some of them produce and protect wallet keys with a single 12-word sentence. In this case, if the wallet is broken or stolen, the user will remember the lam seed les sentence and it will be enough to load the wallet. But if the user forgets this sentence or recovery words, the wallet cannot be restored.

Special hardware devices such as Ledger can be used to store your keys completely offline, as well as smartphone and desktop applications. They can even be printed on paper to protect them completely from hackers. These devices are considered to be the best option for people who have Bitcoin in large sums.

Bitcoin users now have a wide range of wallet options and these options are increasing day by day. But more options require more caution. Fake Bitcoin wallets can be seen as wallets that mimic the exact appearance of popular wallets, but contain malware that actually plays Bitcoins.

Ledger Bitcoin Wallet
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