Today, I would like to talk about bitcoin. Which may be one of the most important milestone in human history. Technology is at the core of the matter. First of all, I warn you that what I will tell should not be perceived as an investment advice. I will only explain the technological part of the matter called blockchain. Is investment made? How to do it? Or does it fail? Such questions are not our issues for today.
Let’s drop a note to history. At the moment 1 Bitcoin is approximately 390 thousand liras. If you bought a few hundred liras of bitcoin a few years ago, you would be a millionaire by now. There are many similar examples in the World.
Bitcoin is a Cryptocurrency payment system. In 2008, this system was announced to the world with a 9 pages
pdf document. It is not even known who wrote this article, which is perhaps one of the most important documents in the human history. This document redefines money, perhaps the most important invention of humans. ‘‘Bitcoin: A Peer-to-Peer Electronic Cash System’’ Peer to peer means a decentralized, distributed network structure. Bitcoin eliminating money exchangers. So who are these exchangers? Financial organizations, banks, especially central banks of countries. There is no such central authority in the bitcoin world. An open source software takes this role. You can download and review its codes right now. You can even do better if you want.
At the moment there are more than 1300 different currency like Bitcoin and their number is increasing day by day. Cryptocurrencies use some kind of chain ‘Block Chain’. Have you heard of something called a grocery store? In the past, money was not given when shopping at the grocery store. A notebook had been used for recording cash flow. Every money transfer made with Bitcoin is written in a similar digital notebook, as blocks.
Everyone can download all money transfers to their computers since the first Bitcoin transfer in the world. How can we trust this if it’s public. There are malicious thieves and scammers after all. Could we trust these records? We could. Because these records are kept by everyone, unlike from grocery notebook and it is constantly synchronized. Some of people who read this article will have heard of bitcoin the first time. They might decide to make investment. Bitcoin’s value will rise or fall a little more. Perhaps one more country will ban bitcoin and the value will be down to zero one day. So I’m telling you again. I’m not saying you to buy or sell bitcoin. As I said at the begining this is not a investment advice.