what Bitcoin is and what it is used for?

Had long been the name of bitcoin sounded and the people with the enthusiasm of a trade or invest in one type of this cryptocurrency.

The advantage was so tempting because of the increased valuation from time to time so extraordinary.

In Indonesia itself has a lot of user base, and some companies stand special to be a platform to sell and buy (transactions) bitcoin.

Bitcoin is often regarded as an instrument of the new investment that is so potential to maximize profits.

Until at this stage, you might already interested to know more what is bitcoin, how does bitcoin work.


1. Definition and How to Work Bitcoin

Bitcoin is a new currency or an electronic currency created in 2009 by someone using the pseudonym Satoshi Nakamoto.

Bitcoin primarily used in transactions on the internet without the use of intermediaries alias do not use the services of the bank.

Only, the system works without storage or a single administrator where the Ministry of Finance of the United States refer to bitcoin as a currency that is decentralized.

Unlike other currencies in general, bitcoin does not rely on one main publisher.

Bitcoin uses a distributed database, and spread to the nodes of a P2P network to journal transactions.

He also uses cryptography to provide various functions of basic safety, such as ensuring that bitcoins can only be used by people who do have it, and should never be done more than one time.

As a result, bitcoin can be used in various types of transactions such as buying a server of the internet, buying fashion products and so forth.

There are also many people who only trade in bitcoin as one of the activities investing profitable, and many became wealthy because of it.

It is influenced by the price of bitcoin reaching hundreds of millions of dollars in 2017 ago.

Different with the money is usually deposited in a bank account, bitcoin is basically stored in a personal computer with a file format wallet or stored in a wallet provided by third parties.

Ownership doesn't need an identity, an alias can be owned by an anonymous.


2. The dilemma of Bitcoin Security and Anonymity of its Users

Because ownership can be on behalf of anonymous, bitcoin is often used as a method of money laundering and a variety of other criminal acts.

Bitcoin can also be transferred via the internet to anyone who has the address of the bitcoin wallet.

Topology P2P bitcoin and the absence of a single administration make it very difficult to be manipulated either by a particular entity, either the authority cyber security or any government.

So the price of bitcoin is difficult influenced by inflation because of the difficulty of producing a bitcoin in very large quantities.

With bitcoin also, transactions between countries becomes very easy and private because bitcoin itself is not tied to the state, the law or regulation of any.

Please be aware that every bitcoin transaction is recorded in the public records but the names involved were never recorded and are always anonymous.

On the one hand, because it allows the transactions are dark, it is very difficult for authorities to track down anyone involved in various criminal acts.

Criminal acts such as terrorism financing, the purchase of weapons, narcotics, and so on because of the level of anonymity out of the ordinary.


3. How To Get Bitcoin?

Electronic money kind of bitcoin can be stored in digital wallets that exist in a cloud server or on a personal computer of the owner.

Wallet what is meant is more like a virtual bank account that allows users to send and receive bitcoin, invest and transact.

In addition in the form of the transaction, and then how do I get bitcoin?

The most popular things that often people do is to ‘mine’ bitcoin.

People even compete with each other to mine bitcoin using your computer by solving the math puzzle that is very complex.

That's how the process of creation of bitcoin.

Currently, the winner of which is successful completion of math puzzle is rewarded with a 12.5 bitcoin (or equivalent to Rp 1.4 billion) every 10 minutes.

Incredible, is not it?

Because it is so appealing, a lot of websites out there such as the website provider, torrent/download software, or a free movie in general even tuck the virus in the form of JavaScript and automatically installed in the computer of the visitor.

Then the virus will ‘mine’ bitcoin on a visitor's computer, cause the computer to be slow and easy start hot.

Along with the ‘mine’ and transactions between users, how to earn bitcoin other which is now very famous is through trade.

Many companies become platform marketplace specializing in the field of trade bitcoin.

Bitcoin is now sold following the prevailing exchange rate.

Only 1 bitcoin, its valuation could be the equivalent of USD 115 million. Crazy!

Now you already understand a few things about bitcoin start of what is bitcoin, how it works and how to get it.


You must be logged in to post a comment.

About Author

My name is Desy Rahayu, commonly called Desy. I am a Blogger with the content news cryptocurrency in the whole world.