What is Bitcoin?
Bitcoin is a digital currency, that is, a currency that exists only on the Internet, it has no notes or coins,
It was created in 2009 by an anonymous person or group called "Satoshi Nakamoto",
It is not controlled by any government or bank, but operates on a decentralized network (called the "blockchain"),
You can buy, sell, or transfer Bitcoin online,
🔹 How does Bitcoin work?
Bitcoin runs on a public ledger called the blockchain,
Simply put:
1. When you send someone a bitcoin, it is a transaction,
2. This transaction is sent to the network,
3. Miners (the computers that run it) verify these transactions,
4. Once verified, the transaction is recorded on the blockchain forever,
⛏️ What is the mining system?
"Mining" means:
Confirming new transactions on the network,
In this process, computers solve complex mathematical problems,
Whoever solves the problem first gets new Bitcoins as a reward,
Characteristics of mining:
The reward decreases over time ("Halving" occurs every 4 years),
The last Bitcoin will be mined by the year 2140,
After that, miners will only earn from transaction fees,
❓ How can Bitcoin disappear?
Bitcoin cannot be physically destroyed (because it is digital), but its value (price) can disappear,
Why or how can the price of Bitcoin be zero?
1. Government restrictions: If all major governments impose a strict ban on Bitcoin (like China has partially done), its use will decrease,
2. Technical problem or hack: If a fundamental flaw in the Bitcoin system is revealed (which has not yet happened), trust may be lost,
3. Better alternatives: If another currency (such as Ethereum or a government digital currency) becomes more secure or cheaper, people may abandon Bitcoin,
4. Environmental criticism: Bitcoin uses a lot of electricity, if the world turns against it, trust in Bitcoin may fall,
5. Loss of trust: If people do not consider Bitcoin as a safe store, they will move their wealth elsewhere,
💰 How does the price of Bitcoin increase or decrease?
The price of Bitcoin is determined solely by "demand and supply".
If people want to buy more → the price goes up
If people want to sell more → the price goes down
No bank or government has any control over its price,
If you want to know how Bitcoin works
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