There is no official organization that produces or manages it! We don’t even know the real identity of its creator… As the Bitcoin myth grows and spreads, we investigated the future of this cryptocurrency.
Bitcoin can be described very simply as a digital currency or an electronic payment system. This unit, which is used as “cryptocurrency” in English was first introduced to a small group in 2008 and launched in 2009. The interesting thing is that the real identity of the person or people who created Bitcoin is still unknown. We only know a pseudonym: Satoshi Nakamoto. In fact, the name that emerged as the creator of Bitcoin is “Bitcoin: A Peer-to-Peer Electronic Cash System“.
Anonymous and cost-free money transfers!
There is no center or official authority that governs Bitcoin. The most important feature of this currency is that there is no need for an intermediary institution for transactions. In other words, you can do your business without the need for a bank or similar organization. You don’t need to use your name or pay any fees when making this transfer. More importantly, you can pay for any service you can think of with Bitcoin. Being able to make anonymous money transfers makes Bitcoin even more attractive, especially when you can make international money transfers quickly and at no (or much less) cost. These transfers don’t have to deal with the restrictions of any country’s banking rules or laws. In 2017, the first Global Comparative Cryptocurrency Study was conducted by the University of Cambridge and found that between 2.9 million and 5.8 million active users use the cryptocurrency. The vast majority of these users prefer Bitcoin. The number of active users is said to have increased very rapidly since 2013.
Bitcoin’s untraceability raises many questions. The first of these is that it paves the way for money-related crimes. But the truth is not like that. Because even though it is not tracked or connected to a system, all transfers are publicly published on blockchain.info. This keeps the system under control and makes it secure. If this were not the case, Bitcoin would be widely used for illegal activities. The public format prevents this.
So how is Bitcoin produced?
As you know, money is minted at the mint under state control. The production of Bitcoin is called mining and is not managed by any government or organization. To explain the mining process very simply: You generate Bitcoins by solving a riddle or math problem on your computer and you earn that Bitcoin. But to do this, you need to use special software on your computer. You use your computer’s processor and graphics card power to solve the problem. In short, the more powerful your computer is, the more likely you are to solve problems.
As Bitcoin production increases, math problems are getting harder. Thus, at some point, it becomes almost impossible for individuals to solve riddles with the computers they use alone. Because the power of the computer is not enough. In this case, mining pools come into play. In other words, since the processor and graphics card power of a single person is not enough, many people continue to solve riddles by combining the power of their computers.
How profitable an investment is it?
In the early days of Bitcoin production, the problems to be solved were simple, but as production increased, the puzzles became increasingly difficult. At this rate, it is predicted that one day the problems will become impossible to solve and Bitcoin production will stop. At the current rate, it is estimated that 21 million Bitcoins will be produced by 2140.
Since the processor and graphics card power required to obtain Bitcoins through mining is very high today, another alternative is to buy Bitcoins for the money we know from domestic or foreign websites.
Considered as an investment tool, Bitcoin can be quite lucrative, but it also involves a lot of risk. There are exchanges for Bitcoin in various parts of the world. But Bitcoin is not only an invesment tool. It is way of the innovation to create paradigm shift to all World.
If you would like to integrate Bitcoin to your business. Contact Enkronos team today.