Bitcoin It may be one of the most important turning points in human history. It might not happen .. In the end, I still feel obliged to explain myself since technology is at the core of the subject. And first of all, I warn you that what I will tell should not be perceived as an investment advice. I will only pass on the technological basis of the subject called block chain. Is investment made? How is it done? "Is it a balloon?" "Does it explode?" Questions like this are not the subject of this video. Let's make a note in history As of December 2017, when this video was prepared One bitcoin is worth about sixty thousand lira, or about fifteen thousand dollars.
Who knows what happened while you were watching this video? A few years ago, a few hundred pounds If you bought bitcoin You were already a millionaire by now It was a mulberry here already. If your grandfather had bought the fields there, by now … Anyway some don't say already He started buying bitcoin when he was 12 years old and is now a bitcoin millionaire. .. Like that 18 year old teenager. Do not whet your appetite by saying "There are many more examples like this …" I prepared this video so that you do not jump right away and invest in something you do not know. May be a little too technical in some parts but we're talking about something technological, after all. Watch patiently until the end try to understand rewind in places you don't understand and watch again.
But first know and then act accordingly Bitcoin is a cryptocurrency and payment system In 2008, this system, It was announced to the world with a 9-page pdf document. Here is perhaps the most important in human history This article, which is one of the documents Even who wrote it is not yet known. He is also the mysterious “ Satoshi Nakamoto '' There is a lot of speculation about the course, some even (this is a recent claim) She even claims to be Elon Musk but I don't think so Anyway, we don't waste much time on this mysterious personality for now.
Let's leave it to other videos. Let's focus more on the document he wrote. Because this document is perhaps what people do the most important invention, money redefining. Look, it says the following in the title; Person-to-person electronic money system Now we use the phrase "Peer-to-Peer" in the original. So I would like to emphasize the words '' P2P '' especially Because in a few places where it has been used before These words have the power to tear down and rebuild industries For example in 1999 P2P file sharing service NAPSTER appeared and … … in those years we used cassette or cd to listen to music … …what are we doing now? The music industry has changed almost completely since then. Yeah maybe there's no such thing as NAPSTER anymore but not a single step backward NETFLIXs SPOTIFYs emerged Therefore, in a video that I will do 10 years from now, "What if there was something like this, do you remember?" I can ask you, “ What was that? '' Because P2P has such power.
Because P2P means decentralized It means a distributed network structure. "Decentralized" Or are you one of those we still can't decentralize? I can ask 10 years later Here, a tool like money also eliminates intermediaries. It decentralizes. So who are these intermediaries? Financial organizations, banks. At the very beginning central banks of countries. In the Bitcoin world there is no such central authority. Instead of there is an open source software. Yes it's open source and you download his codes right now You can examine. You can even do better if you want. Indeed it is currently bitcoin-like There are more than 1300 different currencies. And their number is increasing day by day. So it's not just about bitcoin. The approach behind it – which excites me the most this is the thing.
You know, I love chains. Here cryptocurrencies use some kind of chain. BLOCK CHAIN Do not laugh under your mustache just like that, dear. This is not a chain of happiness. Have you heard of something called a grocery store? In the past, money was not given when shopping at the grocery store. It was called "Write my friend in the notebook." Here is every monetary transaction money transfer made in bitcoin. It is written in blocks, on a digital notebook like this. Let's try to explain the subject with an example. Let's say I am something valuable, like I sold my car to Mehmet (to Mehmet in yellow boots) A bitcoin. Because one bitcoin is worth about a car. that's when this process is done It is written in a digital notebook that "Mehmet has sent 1 bitcoin to Barış". And such that money transfers are recorded in blocks this way and a chain is formed out of them.
"Block Chain" Moreover, this is open to everyone. Up to the present From the first bitcoin transfer in the world all money transfers to date anyone can download it to their computer. A 145GB file If E is open to everyone, how can we trust this? After all, he's got a thief, he's got a cheater, he's got a malicious Won't they change them? Can these records be trusted? It happens. Because these records unlike grocery notebooks, it is kept by everyone. Anyone can register. And it is constantly synchronized. When you send 1 bitcoin to Mehmet Barış, these 3 information So the sender's account number the amount sent and the recipient's account number written in notebooks all over the world.
To be able to do such a transaction, first of all you need to have an account. When you enter the Bitcoin world first you are creating an account We can call it a digital wallet. Here is the security of this wallet It is provided by "cryptography" or in other words, "cryptology" So with encryption Each wallet has two keys. One is private, the other is public. Only you know and can use your private key. Like a personal signature. But it is inimitable. When Mehmet wants to send 1 bitcoin to Barış which you can send, Mehmet. Don't mind for me. First of all he knows Signing with the key. E.g; Yellow-booted Mehmet, and then his public key. together with the bitcoin network. Those on the network are also checking the correctness of the transaction using this public key. If this public key is verified in the bitcoin network Your message is not from any Mehmet, but It has been proven that he came from Mehmet in Yellow Boots. In other words, an identity check is made in this way. Well, let's say our Mehmet is very smart and even though you have 1 bitcoin in your wallet bought a car and then again with this one more bitcoin attempted to trade.
What will happen in this situation? Could he spend the same money twice? What would happen if he tried to do this in a traditional way, for example with his money in the bank? The bank is required to make the second purchase. wouldn't allow. Because the banking system all the money he had he knew what he was spending. So who owns the money until It also matters when and how much is spent. A spend in the Bitcoin world or "block chain" system when you want to make a money transfer the amount you have before and all you have ever done He has to control money transfers, money movements.
Because only in this way can he know how much bitcoin you have at that moment. Well, these records are in many places in the world. and we said that they were held in large numbers. Behold "decentralized we said a network. Similar to a grocery notebook but digital being kept on blocks. Many transfer money transactions are made at the same time around the world. If we think about it, at that moment, the various blocks are it is also quite possible for the records to be deducted. Moreover of these records that seem to be different from each other May all be true.
Oh by the way, the calculations trying to sync with each other It can occur with delays in the network. Briefly; the intricate information written on these grocery notebooks needs to be inserted. Here is the technology a math problem to be solved with the help of. Monetary transactions in the Bitcoin world complex math problems have to be solved to be able to and these math problems It is generated by a "cryptographic hash function". How did I start talking like an alien right? Have they started to get confused? Be patient, you will understand. What does "hash function" mean? In the most general sense it means "an algorithm that speeds things up". Tangled and of many different lengths take the data and transfer it to fixed-length data. it means to convert. Actually hash functions It is used in many places today.
E.g; Similarities in DNA sequences in the human body to see if it is. Or while playing a song, asking "what is that song?" Have you ever opened it and played it, dear? Here is the song that plays there using a hash algorithm of whatever length or length converted to a specific code and a special identity is produced.
For each song. When you listen to the song on your cell phone this identity is in a database of millions of songs can be found quickly. And the code sent in the meantime a reversing calculation is done. Subject understand what a music is a song as it is not very important in terms of security The algorithm used is also very easy to solve. So it works very fast. However, in the world of bitcoin, it is a much safer 256 bit secure hash algorithm.
In short, SHA-256 is used. Generated using this algorithm has a strong equipment to solve a problem a computer needs to run for about 10 minutes. E 10 minutes may sound like not that long But billions of similar problems are solved. If we think that it should be We can say that it is not done easily and quickly. So too not hundreds but thousands in the world right now tens of thousands of highly powerful computers is constantly trying to solve these problems. Even according to a rumor the largest total CPU power in the world currently working behind bitcoin and all these transactions. It's called 'bitcoin mining'. So why Thousands of people find supercomputers worth thousands of dollars. and giving electricity money on top of it Is she getting into such a job? Why does such mining do? As a memorial service? Of course no.
An award within the Bitcoin system there is a mechanism from it. If these problems by solving the records in the bitcoin system if you help him hold it securely new bitcoins are created. And these are yours … … is transferred to your account. Just like a gold like finding new gold in your mine. But… here is a very important We come to the crossroads. Attention! Why is gold valuable? Isn't it because it is a rare mine in the world? Or is it essentially a piece of stone. What could it be worth? Inedible, not drinkable.
Its less the fact that it makes it valuable. We say less, but we still do not know the exact amount of gold. Still underground continues to come out. Nobody has any information about how much it will be. They only have guesses. As a matter of fact, money too isn't it? It continues to be pressed continuously. Here is bitcoin of gold and money in mining unlike, there is a limit. So it is very clear how many bitcoins can be produced. and limited. 21 Million There will be a total of 21 million bitcoins in the world. Not more. Well, a question comes to mind as “how much has been produced so far?”. Around 16 Million. Currently 16 Million in circulation There is bitcoin and the generation of new bitcoins it's getting harder and harder. The system is that way designed.
According to the projections the last bitcoin, namely the 21 millionth bitcoin It will be produced around the year 2140. Because of such a limited number and difficult to obtain also valuable It is also thought to be very valuable. Here of all these similarities due to digital gold for bitcoin or it's called digital money. But instead, I find it more appropriate to say "Digital Value Store" for bitcoin.
“ DDD '' Well, if that's it valuable. Then what are we standing still? Let's go without even the end of the video, let's buy bitcoins immediately. Let's invest "?" If you ask me I add one more "D" to the head of that 3 "D". Experimental. Yes, bitcoin is experimental digital value store If you bought a $ 1000 worth of bitcoin last month This month you would have 3000 tl worth of bitcoin in your hand. Well, who has done what has already risen quite high tripled this value in 1 month? Unknown. Perhaps the drama “ Big Bang Theory '' aired in the meantime. As bitcoin was handled as the subject in its new episode, more people heard and More people invested and therefore its value increased. Who knows? Maybe many new people will hear about bitcoin after watching this video. and will attempt to invest and its value will increase a little more. Or it will fall. Even maybe one more country will ban bitcoin and its value will drop to zero one day.
And that's why I'm underlining again. I'm not saying you buy bitcoin or not. I say experimental. Yeah bitcoin, ethereum, litecoin too Or more than 1300 I can't count their names now all of those cryptocurrencies as of now experimental. However, I think that the underlying chain of these is Block Chain. technology that is decentralized the distributed structure in defining money I think it's a revolutionary approach. So not bitcoin, maybe specifically, but Block Chain technology in human history It may be one of his most important inventions. Yes. It's experimental too. Already a decentralized network The internet was also once experimental. So were the grocery notebooks before that. And at that time, the following also mentioned the money transfers of Mehmet Ağa in Yellow Boots … … the famous song from us not from Youtube or Spotify We used to listen to records. "Write my friend" "Peace tells, does he learn a lesson?" "Write my friend" "If I write on water, will it stay?" "Write my friend" "A world that mixed with right and wrong" "Write my friend…"