What is Bitcoin (BTC)?

Bitcoin, the first cryptocurrency, has become almost universally recognized. Bitcoin, a product of blockchain technology, also serves as a medium of exchange, storage, and measurement, much like the dollar or euro. But with a difference! Neither the Fed nor the ECB are behind it. Indeed, its primary distinguishing feature is its lack of any central authority.

So, when did Bitcoin, the digital currency we're all familiar with, come into being? What are its evolutions since its launch? What are its true uses? We'll explore this in detail in our blog post.

The Definition and Origins of Bitcoin

What does Bitcoin mean? The term Bitcoin is a combination of the words bit (the smallest piece or unit of something) and coin (coin). Bitcoin is a digital currency that operates with an open-source ecosystem that offers an alternative to today's monetary system and allows everyone to access it.

What is BTC? Cryptocurrency (virtual currency) is a type of digital currency. In other words, digital currency encompasses cryptocurrencies. In digital money, units of account are traditional, legally circulating currencies like the Euro, Dollar, and Turkish Lira, while virtual currencies, such as the Linden Dollar or Bitcoin, are later-invented currencies that lack legal circulation.

Records of Bitcoin transactions are kept in blockchain databases, which can be summarized as a global ledger. Blockchain can be defined as an electronic medium that enables fast, low-cost, and secure money transfers between parties. This technology is based on a peer-to-peer (P2P) system.

Peer-to-peer electronic cash systems allow you to easily send online payments to other parties without requiring approval from any intermediary institution (bank, etc.).

The 2008 Whitepaper and Satoshi Nakamoto

When was Bitcoin released? The history of Bitcoin dates back approximately 20 years. Bitcoin was created in 2008 by an individual or group using the name or pseudonym Satoshi Nakamoto, whose identity is unknown. Like other revolutionary technology developers worldwide, Satoshi Nakamoto published a paper online before launching Bitcoin. His 2008 whitepaper, also known as Bitcoin: A Peer-to-Peer Electronic Cash System, detailed the foundation, technical structure, and goals of a crypto asset or blockchain project.

To this day, the identity of Satoshi Nakamoto remains unknown, and even his very existence is a matter of debate.

Genesis Block and the First Transfer (2009)

The blockchain technology on which the Bitcoin digital currency is based stores transaction data transparently and securely. Because data is stored in a chained structure of blocks, it cannot be altered or deleted.

While transactions in traditional systems are verified through a trusted third party, thanks to the blockchain, transactions occur directly between parties without the need for a central authority.

The Bitcoin Genesis Block, which forms the basis of blockchain technology, is the first block in a blockchain network. As its name suggests, it represents the beginning of the network and forms the backbone of the entire blockchain system. Satoshi Nakamoto limited the maximum number of Bitcoins that could be generated in the Bitcoin Genesis Block to 21 million.

The first Bitcoin block was created on January 3, 2009. The first Bitcoin transfer then took place on January 12, 2009, between Satoshi Nakamoto and Hal Finney, the cryptographer who helped him develop the system.

Rationale for its emergence: Criticism of the financial system

Today, when you make an online purchase, your payment first goes to a bank or credit card company. These intermediaries then deduct transaction and commission fees. Once your transaction is confirmed by the bank, the payment reaches the merchant.

Your bank is the sole accountant for your payments. Due to the pre-signed agreements, you are obligated to trust your bank 100% during this process.

In 2008, Satoshi Nakamoto introduced the idea of ​​a secure, fast, and low-commission digital currency that could be sent directly from person to person, without the need for banks or any other intermediaries. This idea solved all the problems of current internet payments.

The financial crisis, which began in the US due to the Mortgage System and spread to EU economies in 2008/2009, becoming global, caused the national currencies of many countries around the world, especially the US dollar, to lose significant value. This situation profoundly shook the widespread belief that these currencies would not lose value.

Bitcoin, the decentralized digital currency that began operating in 2009 and based on an article published by Satoshi Nakamoto in 2008, quickly became popular, attracting the attention of investors seeking a new monetary unit of value.

Bitcoin's History: Major Turning Points

Due to the 2008 global financial crisis, trust in the traditional banking system diminished. During this period, an individual or group named Satoshi Nakamoto took a bold step.

On October 31, 2008, Nakamoto published the article titled Bitcoin: A Peer-to-Peer Electronic Cash System. In this article, Nakamoto laid the foundation for a decentralized financial system, unlike the traditional structure.

January 3, 2009, marked the beginning of a new era in the financial world. Satoshi Nakamoto created Bitcoin's first block, the Bitcoin Genesis Block. This innovation can also be considered the date of Bitcoin's release.

What is a Genesis Block? The Genesis Block is the first block on the Bitcoin network and is also known as "Block 0." It can be translated into Turkish as "Starting Block." As its name suggests, it represents the beginning of the network. Bitcoin blockchain technology operates as a transparent and secure ledger that verifies transactions without relying on a central authority.

Each block contains transactions made within a specific timeframe. It is then added to the chain using an encrypted hash (encryption algorithm). The Bitcoin Genesis Block is the first link in this system, and all subsequent blocks are added to it.

With the creation of the Genesis Block, the Bitcoin network officially launched, and the first 50 Bitcoins were generated. However, these Bitcoins were not spent. Today, they remain symbolically in a wallet believed to belong to Nakamoto.

2010: First commercial transaction (Pizza Day)

While discussions continue regarding the acceptance of Bitcoin as a payment method, the first transaction in this regard occurred on May 22, 2010, when two pizzas were purchased for 10,000 BTC.

The first transaction using Bitcoin was made on bitcointalk.org between software developer Laszlo Hanyecz and Satoshi Nakamoto. This date is celebrated worldwide as Bitcoin Pizza Day.

2012 / 2016 / 2020: Halving Events

Miners play a critical role in the Bitcoin network, ensuring it remains decentralized and secure. While banks verify transactions in traditional financial systems, miners undertake this task in Bitcoin. Using powerful computers, miners solve complex mathematical problems and create new Bitcoin blocks. Miners who successfully add blocks earn Bitcoin as a reward.

Initially, miners were given a reward of 50 Bitcoin for each block. Following the halving events in 2012, 2016, and 2020, this reward was reduced to 25, 12.5, and 6.25 Bitcoin, respectively. In 2024, it dropped to 3.125 Bitcoin. A halving, which occurs thanks to an immutable code that balances supply and demand in favor of Bitcoin, is simply a periodic halving of the reward per block. 2021: El Salvador's Legal Adoption

El Salvador adopted Bitcoin as its official currency on September 7, 2021. This paved the way for BTC to be accepted as legal tender for the purchase and sale of goods and services in the country.

El Salvador's President, Nayib Bukele, had recognized Bitcoin's potential in enabling Salvadorans living abroad to easily send money back home.

El Salvador relaxed its Bitcoin regulations due to a $1.3 billion loan agreement with the IMF. The IMF stated that using Bitcoin as official currency carried economic risks and stipulated that the loan be relaxed. Bitcoin's volatile value, low adoption rates, and concerns from foreign investors also influenced this decision. Therefore, as of April 1, 2025, the requirement for businesses to accept Bitcoin was lifted, but Bitcoin remains available for voluntary use in the country.

All-Time Price Peak ($124,000)

Bitcoin's all-time high was recorded on August 14, 2025. On that day, Bitcoin reached an all-time high of $124,457. This price far surpassed the previous record of $69,000 set in 2021. Considering the current exchange rate, this figure is equivalent to approximately 5,162,000 Turkish Lira.

Why Is Bitcoin Valuable?

According to Erik Voorhees, an American cryptocurrency entrepreneur and founder of cryptocurrency exchange ShapeShift, Bitcoin's value stems from its convenience and scarcity.

In traditional financial systems, users must trust an intermediary. However, in the Bitcoin system, transactions occur directly between users. Therefore, it is censorship-resistant and cannot be stopped by anyone.

This decentralized structure reduces intermediary costs. By speeding up transactions, it offers financial freedom to those who lack access to banking services.

Bitcoin's limited supply allows it to maintain its value against inflation. It also offers users financial independence, allowing them to fully decide how to manage their money. Here are some key features of Bitcoin:

Decentralization Principle

Bitcoin is a cryptocurrency that offers a direct, peer-to-peer payment system independent of central authorities.

Bitcoin's independence from central authorities provides many advantages, including trust, financial access, low costs, transparency, and security.

Nodes worldwide verify transactions, rather than a centralized system.

The First and Most Widely Used Cryptocurrency

Modern cryptocurrencies are decentralized systems based on blockchain technology. In the crypto universe, blockchain serves as a public ledger of encrypted transactions stored and updated on the computers of thousands of people worldwide. Transactions are anonymous but public.

While Bitcoin was not the world's first digital currency or the first application to utilize blockchain technology, it was the first cryptocurrency to combine all these elements in a single system. Therefore, it remains the most traded and widely used cryptocurrency today.

Secure, Transparent, and Censorship-Resistant

All transactions related to Bitcoin, which is not under the control of any government or bank, occur on a network managed by users (the blockchain). The blockchain network operates as a data ledger where all transactions are transparently recorded and is highly secure.

Transactions conducted directly between users are resistant to censorship. Because all Bitcoin transactions are recorded on the blockchain, it has a transparent structure that can be verified by anyone. This significantly reduces the risk of fraud.

Who is the Founder of Bitcoin?

Satoshi Nakamoto, a very important figure in cryptocurrency history, is the name or pseudonym of the individual or group known as the creator of Bitcoin.

When was Bitcoin founded? Nakamoto played an active role in Bitcoin's development until December 2010. He is also the creator of the blockchain database.

Satoshi Nakamoto remains anonymous today. However, general claims suggest that Nakamoto was born on April 5, 1975, was of Japanese descent, lived in the United States or Japan, and was a cryptographer and computer scientist.

Some of the candidates thought to be Satoshi Nakamoto, the founder of Bitcoin, include: Nick Szabo, Dorian Nakamoto, Vincent van Volkmer, Hal Finney, Craig Steven Wright, Paul Le Roux, Cyrano Jones, Ross Ulbricht, Gavin Andresen, and Elon Musk.

Nakamoto is thought to have approximately 1 million Bitcoins. Based on the all-time high price of 1 million Bitcoins on March 14, 2024, it would be approximately $73.780 billion.

His contribution to anonymity and decentralization

Satoshi Nakamoto always kept his identity secret. He handed over the project to the Bitcoin community in 2011 and then disappeared. Satoshi's anonymity reinforced Bitcoin's decentralized nature and allowed the community to embrace the project.

Nakamoto's anonymity allowed the Bitcoin community to focus on technology rather than relying on a single leader. Consequently, the project evolved into a structure where decentralization is paramount.

Satoshi's Place in Crypto Culture

Satoshi Nakamoto, a legendary figure in cryptocurrency history, symbolizes Bitcoin's core values.

Nakamoto began writing the system's code in 2007 and designed the first blockchain database. He continued to develop the Bitcoin software with other developers until the mid-2010s.

Nakamoto's proposed system formed the cornerstone of today's cryptocurrencies and elevated Bitcoin to digital gold status. Today, Bitcoin's market capitalization is equal to billions of dollars. Many cryptocurrencies, such as Ethereum and Ripple, emerged inspired by these revolutionary ideas developed by Nakamoto. In this context, the ideas and systems developed by Nakamoto led to the redefinition not only of financial institutions but also of trust, privacy, and decentralized finance.

Frequently Asked Questions (FAQ)

• When and why did Bitcoin emerge?: Bitcoin's history as a cryptocurrency dates back to 2008. As paper money is printed without backing, inflation rises and our purchasing power decreases. The reason for Bitcoin's emergence is actually a move against the deception and enslavement of the majority by the minority. Now, when you swipe your credit card at the grocery store, the grocery store asks the bank if they have enough money. The bank checks their records, confirms the purchase, and deducts the amount spent from your card limit. There's also a commission for this service.
• If everyone keeps these records simultaneously, there's no need for a bank. This is the same with Bitcoin. Everyone is a network of interconnected computers.
• Who founded Bitcoin?: Bitcoin was founded by an individual or group using the name or pseudonym Satoshi Nakamoto, whose true identity is unknown. How does Bitcoin work, and who controls it?: Bitcoin is a digital currency that you can send directly to another party via the internet. However, the money doesn't pass through any institution or bank. Therefore, transaction fees are much lower, it can be used in every country, your account can't be frozen, and there are no prerequisites or arbitrary limits. In some places, you can buy and sell Bitcoin for dollars, euros, and other currencies. Your Bitcoins reside in the digital wallet on your computer or mobile device. You can send Bitcoin to another party just like sending an email, and you can buy anything you want with Bitcoin. Payments are recorded on a public ledger after they are verified. The Bitcoin network is decentralized and not controlled by any individual, institution, or government. The security and operation of the network are maintained by users and miners worldwide.
• What was Bitcoin's initial price?: What was Bitcoin's initial price? When Bitcoin's first block was created, its value was $0. Bitcoin's first real value was determined in 2010, when a user purchased two pizzas for 10,000 BTC. At the time of this transaction, the value of 1 BTC was calculated as approximately $0.004. The price fluctuated significantly in 2011. It exceeded $1 at the beginning of the year, dropped to $0.30 in the middle, and peaked at $31 by the end of the year.
• What is Bitcoin's purpose, and why is it valuable?: Bitcoin's value primarily stems from being the first cryptocurrency that no single institution controls. It allows users to transfer digital money directly without central intermediaries. With its new decentralized financial system, Bitcoin protects the value of assets while also promising users financial freedom. Finally, Bitcoin's limited supply and decentralization, the fact that transactions are publicly available but user identity is always anonymous, its permanence, and the fact that all transactions occur between individuals without intermediaries.
• Is Bitcoin limited or infinitely minable?: The total supply of Bitcoin is capped at 21 million. This limit helps Bitcoin maintain its value and resist inflation.

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