What is Bitcoin (BTC)?

Cryptocurrency

Bitcoin (BTC) is a decentralized digital currency. It was introduced to the cryptocurrency market in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. Based on blockchain technology, Bitcoin enables peer-to-peer (P2P) money transfers without the need for a central authority. With this feature, it stands out as an alternative digital payment method to traditional financial systems.

The most notable characteristic of Bitcoin is its limited supply of 21 million coins. This structure allows Bitcoin to function within a digitally scarce environment over time. Additionally, transaction records are transparently, immutably, and verifiably recorded on the blockchain by all users. This makes the system secure and resistant to censorship.

As of 2025, Bitcoin is one of the most widely adopted networks among blockchain-based systems. While many countries are working on regulations for digital assets, Bitcoin’s decentralized structure and global nature distinguish it from traditional systems.

History of Bitcoin

Bitcoin’s story began on October 31, 2008, with the publication of a technical whitepaper by Satoshi Nakamoto. Titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” this document explained how a decentralized digital currency system would function. On January 3, 2009, the Bitcoin network was officially launched, and the first block—known as the Genesis Block—was mined.

In its early years, Bitcoin was known and used by very few people. However, over time, it gained acceptance among tech enthusiasts, developers, and digital freedom advocates. One of the first Bitcoin transactions occurred in 2010, when two pizzas were purchased for 10,000 BTC. This event is commemorated annually as “Bitcoin Pizza Day.”

Over the years, Bitcoin has gone through several evolutionary phases:

2011–2013: Bitcoin surpassed $1 for the first time and started trading on exchanges like Mt. Gox.
2014–2017: Institutional interest began, and the first regulatory debates emerged.
2017: Bitcoin reached its all-time high of around $20,000 and gained significant mainstream media attention.
2020–2021: The COVID-19 period and subsequent monetary expansion brought Bitcoin into the spotlight for institutional investors. Companies like Tesla and MicroStrategy purchased Bitcoin, while payment platforms like PayPal and Visa introduced crypto support.
2024: The latest Bitcoin halving occurred. With the reduction in supply, upward pressure on price increased, and signs of a bull market re-emerged.
2025: Approval of spot Bitcoin ETFs enhanced integration with traditional finance. Investors can now invest in Bitcoin through regulated exchanges.

Who Created Bitcoin?

Satoshi Nakamoto, the creator of Bitcoin, is an individual or group whose real identity remains unknown. It is estimated that Nakamoto owns around 1 million BTC, though these funds have never been moved. Nakamoto’s identity is still a mystery and remains one of the most discussed topics in the crypto community. The decision to remain anonymous is seen as aligned with Bitcoin's decentralized ethos.

Several individuals have been speculated to be Nakamoto, including:

Craig Wright: An Australian computer scientist who claimed in 2016 that he was Satoshi. However, the documents he provided were deemed fraudulent by courts, and his claims were largely rejected.
Dorian Nakamoto: In 2014, a journalistic investigation claimed he was Bitcoin’s creator. Dorian denied the claim, stating he had never heard of Bitcoin.
Nick Szabo: Known for pioneering smart contracts, Szabo worked on a digital currency concept called “Bit Gold,” which fueled speculation. However, he denied being Nakamoto.
Hal Finney: One of Bitcoin’s first users, Finney communicated directly with Nakamoto and received the first Bitcoin transaction. He also denied being Nakamoto.
Len Sassaman: A cryptography expert whose work aligned with Bitcoin’s philosophy. His death in 2011 coincided with Nakamoto’s disappearance, fueling theories, though none were proven.

Ultimately, Nakamoto’s identity remains unknown, and this mystery continues to be one of the most fascinating aspects of the cryptocurrency world. The choice to stay anonymous also reflects Bitcoin’s commitment to decentralization.

How Does Bitcoin Work?

Bitcoin operates as a decentralized digital currency system using a distributed ledger technology called blockchain. In this system, transactions are verified and recorded by thousands of computers (nodes) around the world. This structure enables transactions without relying on a central authority.

Every transaction on the Bitcoin network is recorded transparently and immutably in blocks. These blocks are then added sequentially to the chain, creating a complete and visible transaction history. This ensures both security and data integrity.

Bitcoin transactions follow these steps:

Creating the Transaction: A user initiates a transaction to send a specific amount of BTC to another user.
Broadcasting the Transaction: The transaction is propagated to all nodes in the Bitcoin network.
Miners Step In: Miners collect transactions into blocks to be verified. Each block requires solving a specific mathematical problem.
Adding the Block to the Chain: Once the problem is solved, the block is confirmed and permanently added to the blockchain.
Transaction Completion: The confirmed transaction reaches the recipient's wallet.

Bitcoin uses the Proof of Work (PoW) consensus mechanism. This system requires significant computational power to secure the network and validate transactions. PoW ensures the system is resistant to external attacks.

What Is Bitcoin Mining?

Bitcoin mining is the process of verifying transactions on the Bitcoin network and adding new blocks to the blockchain. Miners solve complex mathematical problems to earn rewards in Bitcoin. Over time, mining has become more difficult, and rewards have decreased, requiring more energy and resources.

Think of Bitcoin mining as digital gold mining—but instead of picks and shovels, powerful computers and software are used. The Bitcoin network relies on miners worldwide to confirm transactions and maintain security.

The mining process works as follows:

Transaction Verification: All transactions on the Bitcoin network are grouped into data packages called “blocks.”
Solving Mathematical Problems: Miners must solve complex equations to validate these blocks. These computations require substantial processing power.
Earning Bitcoin: The miner who solves the problem receives newly minted Bitcoin as a reward. Miners also earn small transaction fees.

The main goal of this process is to keep the Bitcoin network secure and decentralized. Miners not only confirm transactions but also help protect the network from malicious actors through the Proof of Work system.

Who Can Mine Bitcoin?

Technically, anyone with the required equipment and infrastructure can mine Bitcoin. However, due to increased difficulty, mining now requires specialized ASIC devices, cooling systems, and access to cost-effective electricity. As a result, individual users often choose to buy BTC directly or mine other cryptocurrencies instead.

See also: What Is Cryptocurrency Mining?

What Is Bitcoin Halving?

Bitcoin halving is the process by which the reward for mining a block is reduced by half approximately every four years. Since Bitcoin’s total supply is capped at 21 million, this mechanism ensures a controlled and predictable issuance of new BTC.

Halving occurs automatically every 210,000 blocks on the Bitcoin network. Built into the system from day one, this mechanism is a core component of Bitcoin’s deflationary nature. After each halving, the amount of newly issued Bitcoin to miners decreases, leading to a reduced supply entering the market.

This diminishing supply structure maintains the sustainability of transaction verification on the blockchain and slows down BTC production over time. Bitcoin issuance is expected to cease around the year 2140, after which miners will be compensated solely through transaction fees.

Halving is a crucial part of Bitcoin’s economic model and differentiates it from traditional fiat currencies. Unlike central bank-driven monetary policies, Bitcoin’s supply growth is predetermined and immutable.

Bitcoin Halving Dates

In Bitcoin’s history, there have been four major halving events so far. These events have directly impacted the system’s operation and mining rewards:

Halving	Date	Block Number	Reward (BTC)
1st Halving	November 28, 2012	210,000	50 → 25 BTC
2nd Halving	July 9, 2016	420,000	25 → 12.5 BTC
3rd Halving	May 11, 2020	630,000	12.5 → 6.25 BTC
4th Halving	April 20, 2024	840,000	6.25 → 3.125 BTC

The next halving is expected to occur in the first half of 2028, around block 1,050,000. At that point, the mining reward will be reduced from 3.125 BTC to 1.5625 BTC.

Each halving event not only prompts miners to seek a new economic balance, but also plays a crucial role in maintaining the sustainability and limited supply structure of the Bitcoin network.

Factors That Determine Bitcoin’s Price

Bitcoin’s price is determined by the balance of supply and demand. Investor interest, market conditions, regulations, and global economic developments influence price fluctuations. Particularly, strong interest from institutional investors and Bitcoin’s limited supply of 21 million BTC are key factors that drive the price up.

Additionally, Bitcoin experiences notable market cycles approximately every three years. During bull markets, prices tend to rise, while during bear markets, the price often trends downward. In such periods, Bitcoin price charts are monitored more frequently.

Beyond market dynamics, global events, economic crises, and geopolitical tensions can also impact Bitcoin’s price and the broader cryptocurrency market.

Advantages and Disadvantages of Bitcoin

Advantages:

It is decentralized and not controlled by any government or institution.
Offers low transaction fees and enables fast cross-border payments.
Transparent and secure; blockchain transactions are immutable.

Disadvantages:

Highly volatile, which increases investment risk.
Mining consumes a large amount of energy.
Regulatory uncertainty in some countries due to lack of clear frameworks.

Why Is Bitcoin Valuable?

Bitcoin derives its value from its limited supply (21 million BTC), decentralized nature, and global adoption. Additionally, it is increasingly recognized by investors as a store of value—often referred to as “digital gold”—which further contributes to its value.

How Is Bitcoin Stored?

As a digital asset, Bitcoin cannot be stored physically. Instead, it is stored in specialized digital wallets. Storage methods vary depending on security needs and usage preferences. In general, Bitcoin storage options fall into two main categories: hot wallets and cold wallets.

Hot Wallets

Hot wallets are connected to the internet and allow quick access to funds. These wallets often come in the form of mobile apps, desktop software, or web-based platforms. They are ideal for frequent, everyday transactions.

Advantages: Easy to use, fast access, instant transactions.
Disadvantages: Since they are connected to the internet, they are more vulnerable to cyberattacks and hacking.

Cold Wallets

Cold wallets store Bitcoin in devices that are not connected to the internet. They are considered the most secure way to store Bitcoin because they are protected from online threats.

Hardware Wallets: Physical devices like Ledger and Trezor are widely used for securely storing Bitcoin.
Paper Wallets: These involve printing or writing down private keys. However, they can be lost or damaged.
Offline Software Wallets: Wallet software installed on computers that are not connected to the internet.

Security Tips for Wallets

Store your private keys and backups in secure and accessible locations.
Beware of phishing attacks; avoid clicking on suspicious links.
If you use a hardware wallet, make sure to buy it only from official sources.
Use two-factor authentication (2FA) to enhance account security.

Storing Bitcoin on CoinTR

Bitcoin can be stored directly in your CoinTR account. While CoinTR protects user funds with its secure infrastructure and offers easy access and fast transactions, it is recommended that large amounts of Bitcoin meant for long-term storage be kept in cold wallets for enhanced security.

How to Buy Bitcoin on CoinTR?

Buying Bitcoin on CoinTR is quite simple:

Create an Account: Register account for CoinTR and complete the identity verification process.
Deposit Turkish Lira (TRY): Fund your CoinTR wallet via bank transfer or the FAST system.
Buy Bitcoin: Go to the “ Easy Buy/Sell” tab, select the amount of BTC you want to buy, and confirm the transaction.

CoinTR ensures a fast and secure trading experience with low transaction fees and a user-friendly interface. You can easily check how much 1 Bitcoin is in Turkish Lira on our mobile app before making a purchase.

Bitcoin Overview

Bitcoin is considered a revolutionary innovation in the digital finance world. In recent years, increasing interest from institutional investors and growing global adoption have boosted Bitcoin's popularity. However, due to the market volatility, it is essential to conduct thorough research before making an investment decision. At CoinTR, we offer a secure and transparent platform for buying and selling Bitcoin!

Bitcoin FAQ

How much is Bitcoin in USD?

Bitcoin’s price in USD constantly fluctuates. You can track real-time prices via the BTC/USDT trading pair on CoinTR.

How much is Bitcoin in Turkish Lira?

The BTC price in TRY is updated based on market movements and exchange rates. Check the BTC/TRY pair on CoinTR.

What is the value of 1 Bitcoin in USD?

The value of 1 BTC in USD is determined by supply and demand. You can see the current value on CoinTR’s price screen.

What is the current Bitcoin price?

Bitcoin’s price is not fixed and changes according to market conditions. CoinTR provides live Bitcoin price data to users.

Will Bitcoin go up?

Bitcoin may experience upward trends at times; however, price movements are not based on guaranteed predictions. CoinTR’s charts help you analyze historical data.

How can I buy Bitcoin?

After registering with CoinTR and depositing TRY, you can buy BTC via the “Easy Buy/Sell” or “ Convert” tabs. The process is designed to be user-friendly.

Why is Bitcoin dropping?

Declines in Bitcoin’s price can be due to economic developments, regulatory news, or investor behavior. CoinTR’s price page allows you to monitor changes closely.

When was Bitcoin launched?

Bitcoin was launched in January 2009 with the mining of the first block. The original whitepaper by Satoshi Nakamoto dates back to 2008.

How much is 1 Bitcoin worth?

The price of 1 BTC varies depending on trading volume and market conditions. You can track it in both TRY and USDT on CoinTR.

Where can I buy Bitcoin?

You can buy Bitcoin from licensed platforms like CoinTR that prioritize user security. The platform offers multiple options for trading.

How much was Bitcoin when it first started?

In its early years, Bitcoin had almost no monetary value. One of the most famous price references is when 10,000 BTC were used to buy 2 pizzas in 2010.

How to open a Bitcoin account?

To open a Bitcoin account on CoinTR, simply complete a few steps. Register with your email and verify your identity to start trading.

Who owns Bitcoin?

The creator of Bitcoin, Satoshi Nakamoto, remains anonymous. Since the Bitcoin network operates in a decentralized manner, it belongs to no one.

How to earn Bitcoin?

You can obtain BTC through mining or by participating in promotional/reward programs. CoinTR occasionally rewards users through special campaigns.

What is Bitcoin dominance?

Bitcoin dominance is the ratio that shows BTC’s share of the total crypto market cap. It’s an important indicator for analyzing market trends.

How is Bitcoin produced?

Bitcoin is created through mining, a process that uses the Proof of Work algorithm. Each new block confirmation generates new BTC.

Is Bitcoin secure?

Bitcoin is technically secure due to its cryptographic foundation. CoinTR provides safety measures like 2FA and hot wallet protection for user security.

Risk Warning: The cryptocurrency market is subject to high risk and price volatility. The value of your investments can fluctuate, and you may lose the amount you invested. CoinTR is not responsible for any potential losses. Past performance is not indicative of future results. Users should only invest in products they fully understand and for which they are aware of the risks. Before making any investment decisions, you should carefully assess your investment experience, financial situation, investment goals, and risk tolerance and/or consult with an independent financial advisor.

2025-01-28

What is Cardano (ADA)? What is Ethereum (ETH)? prevIcon

Recommended