Cryptocurrency is virtual money, which is encrypted with extremely complex code systems using cryptographic protocols, can be used in exchange transactions, and according to some, it is the currency of the future. In fact, money spent and transferred with debit and credit cards are also virtual currencies, because as a result of these transactions, only system data changes. Cryptocurrency also has the same working principle, but there is a decentralized system that is not managed by any authority or government, which makes the system more secure.
History of Cryptocurrencies
Cryptocurrency studies, which date back to the 1980s, were first discussed by the leading cryptography experts of the period. Computer scientist David Chaum made the first research and development moves in this field with the projects “ecash” and “Digicash”. After several other projects worked in the 1990s, the concept of “decentralized cryptocurrency” first entered the historical scene in 2008 with Bitcoin .
When the calendars showed October 31, 2008, the white paper document, which explained all the technical details about Bitcoin, was published with the signature of Satoshi Nakamoto. Since then, many famous names have claimed that he is Satoshi Nakamoto; It has even been said that this person may be an artificial intelligence. Others have argued that such a system cannot be designed by a single person and that Satoshi Nakamoto may be a software group. However, today, who Satoshi is still remains a mystery.
What Does Cryptocurrency Do?
At the point reached today, the cryptocurrencies owned can be exchanged anywhere in the world through any cryptocurrency exchange. The number of businesses that receive payments with cryptocurrencies is increasing day by day. This is a clear proof of the trust in this technology. Many national and international banks aim to take their place in this scene before it is too late by establishing their own Blockchain teams.
In general, cryptocurrencies are exactly what credit cards were years ago. The time it takes to keep up is directly proportional to the perception power of the masses. Societies that cannot keep up with change have always disappeared. It is a big change in cryptocurrencies and some experts describe them as the “future of money”.
Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Tether (UTSD) are among the most popular cryptocurrencies in the world. According to the data of CoinMarketCap, there are more than 7000 cryptocurrencies as of the day of this writing. Each of these cryptocurrencies serves different purposes. Some stand out with their transfer speed, some with low transaction fees. Each cryptocurrency has its own advantages and disadvantages.
Where to Buy Cryptocurrency?
To buy cryptocurrencies, you need to use cryptocurrency exchanges. There are many domestic and foreign cryptocurrency exchanges that you can use to buy cryptocurrencies. For example BTC Turk, Paribu. These are Turkey’s largest cryptocurrency exchanges and mediate the buying and selling of many cryptocurrencies, including Bitcoin.
In order to buy crypto money from an exchange, you must create an account, verify your account if necessary, and deposit fiat money (fiat money – Turkish Lira, US Dollars). You can then quickly and easily buy cryptocurrencies on the exchange and store them in your wallet.
How is cryptocurrency produced? What is cryptocurrency mining?
The production of cryptocurrencies is carried out through a distributed system like themselves. So it is user based. Cryptocurrencies have a production limit, so the more cryptocurrencies produced, the more difficult the transactions that need to be solved to produce cryptocurrencies.
The production process is done through mining, even if there is no physical mining, operations based on solving mathematical problems are made. In other words, if you have the processing power and internet connection, you can undertake the mining task without being assigned by someone.
Is cryptocurrency legal?
The legality of cryptocurrencies varies from country to country. Some countries expressly allow its use and trade, while the legal status of others is still unclear or volatile. Some countries have banned or limited the use of cryptocurrencies.
“Is Bitcoin legal?” Questions like these are asked by many people. Currently, there are no laws or restrictions on the use of Bitcoin by the government of the Republic of Turkey, so you are unlikely to be penalized for holding, buying or selling Bitcoin or other cryptocurrencies in your wallet.
Is mining legal?
Bitcoin or cryptocurrency mining is not a crime. There is no illegal situation.
Is your earnings from cryptocurrencies taxable?
If regular money inflows are detected in your account, tax may be charged on your earnings. If your earnings are questioned by the Ministry of Finance, you can state that you have obtained this income from cryptocurrency exchange or mining, and if necessary, you can verify these transactions using your account statements.
What are the advantages of cryptocurrencies?
Since it is not dependent on any central bank, it is not affected by the economic situation of the countries.
It is not possible to freeze or confiscate the account.