What is Bitcoin (BTC)? Bitcoin Guide 2024

Bitcoin is a cryptocurrency known as the miracle of the digital age, as its emergence revolutionized the world of finance and challenged traditional currencies. Bitcoin, which was first used in 2009 by transferring transactions, quickly gained popularity and was referred to as the first generation blockchain.

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The main features of Bitcoin are decentralization and transparency. Thanks to these features, Bitcoin offers people direct financial freedom by eliminating traditional financial institutions and intermediaries. It has immediately become popular among investors and financial institutions with the adoption of Bitcoin.

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It is indisputable that Bitcoin is more than just a cryptocurrency, it has brought a technological revolution. The transparency of the blockchain structure and its limited supply, along with reducing the risk of inflation, have made it an attractive asset for investors.

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However, Bitcoin's speed and scalability problems have led to the emergence of alternative cryptocurrencies. Alternative cryptocurrencies offer a faster and more efficient structure by improving Bitcoin's weak points. New generation crypto currencies have further enriched the cryptocurrency world by providing a competitive advantage with their different features. Because, differences such as production volume, algorithms and blockchain types have given each a unique identity.

Is Bitcoin Reliable?

Yes, Bitcoin is based on a libertarian and responsible philosophy. The Bitcoin blockchain, which has a completely decentralized structure, carries the risk of users losing wallet access if they lose their private keys. But Bitcoin solves the important security problem of double spending. Double spending means spending the same token more than once, and Bitcoin prevents this and ensures security.

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What are the Advantages of Bitcoin?

Bitcoin has emerged as the pioneer of the cryptocurrency world and one of its most popular assets. It has important features such as low inflation risk, a robust payment system and the importance it attaches to user privacy.

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• Bitcoin's decentralized structure provides a revolutionary change in the financial world. 
• The high cost of foreign intervention proves that Bitcoin is a safe and stable platform. 
• Transfers made with Bitcoin are fast and economical compared to traditional financial transactions.

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These elements constitute the significant advantages of Bitcoin. As the areas where Bitcoin is accepted and its usage areas increase, the benefits it provides will also increase. Bitcoin will continue to offer a unique experience to its users.

What are the Disadvantages of Bitcoin?

Bitcoin has many advantages, but it also has some disadvantages that need to be resolved. These disadvantages are as follows:

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• The price of Bitcoin can be quite volatile sometimes and can carry a great deal of risk when investing. 
• Bitcoin transaction speed and capacity may remain low compared to other cryptocurrencies.
• Blockchain technology consumes a high amount of energy for the transaction confirmation process.

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For these reasons, it is important for users who are considering buying and selling Bitcoin to act by taking into account the advantages and disadvantages of Bitcoin. As every investment has risks and rewards, Bitcoin investments should be evaluated carefully.

‍How to Determine Bitcoin Price?

Bitcoin price is determined by the supply and demand relationship in the market. Given the limited supply of Bitcoin, the balance of demand and supply over the amount of Bitcoin available in the market affects the price. There are many factors that affect the overall demand in the market. For example, factors such as central banks' interest rate decisions, geopolitical tensions, global economic crises and general market risk appetite can directly affect the Bitcoin price.

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The supply and demand balance that occurs depending on the risk appetite in the market triggers a price determination process between buyers and sellers. The main factor that determines the price of Bitcoin is the supply and demand dynamics in the market. When users start buying Bitcoin, the price usually increases due to the limited amount of supply. However, when demand decreases or sales increase, prices often fall. Therefore, the Bitcoin price constantly interacts with the dynamics of supply and demand and may fluctuate under the influence of various factors in the market.

Is Bitcoin Legal?

Both yes and no. Bitcoin is accepted as a payment method and even legal currency, but not for all countries. Accepting Bitcoin as a payment method is most easily accomplished through address-based transfers from person to person. This payment method has become more popular as blockchain wallets become accessible through mobile applications. Additionally, there are commercial applications developed for this purpose, they generally work on a QR code basis. 

Other Cryptocurrencies: What is an Altcoin?

Altcoin is a term that describes all digital currencies other than Bitcoin and includes all cryptocurrencies other than Bitcoin. As of March 2024, there are approximately 13,000 cryptocurrencies in the market, and altcoins account for more than 40% of the total cryptocurrency market. 

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Among the market's leading and first-emerging altcoins are:

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• Ethereum (ETH): Ethereum is a blockchain platform that allows developers to create smart contracts and applications. It is the largest cryptocurrency in terms of market volume after Bitcoin, and used as the most popular blockchain in many areas such as Decentralized Finance and Unique Tokens.
• Litecoin (LTC): Litecoin allows faster transaction confirmations and processes transfers more quickly compared to Bitcoin.
• Ripple (XRP): Ripple allows transactions to be processed quickly being both a payment network and a cryptocurrency. While the transaction time on Ethereum takes more than two minutes, on Ripple it is only four seconds. 

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Assets such as Dogecoin (DOGE), Solana (SOL), Avalanche (AVAX), Decentraland (MANA) and Enjin Coin (ENJ) are also very popular and have a large following in the cryptocurrency world.

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