What is Bitcoin?

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What is Bitcoin? – Bitcoin is a virtual currency that was developed in 2009 by someone under the pseudonym Satoshi Nakamoto. This currency as well as Rupiah or Dollar, but only available in the digital world. The concept may sound like e-gold, although in fact much different.

what is bitcoin
what is bitcoin

Bitcoin as a currency has the following features:

Instant transfers in a peer to peer

Peer-to-peer itself means Bitcoin runs without a central server. Server storage is decentralized and distributed-divided into various servers run by any user connected to the network.

Transfer to anywhere

Unlike gold, Bitcoin can be shipped anywhere in seconds, whenever and wherever you want. Sending money with Bitcoin could happen only with a capital of a smartphone and an Internet connection.

The transfer fee is very small

Shipping costs can be eliminated to free, but to speed up transactions, typically your Bitcoin wallet will cut the cost of about 500 to 3.000 rupiah, no matter how much money is sent.

The transaction is irreversible, meaning that once transferred can not be undone.

Bitcoin is given into the hands of another person, the transaction can not be canceled unless the person is willing to send Bitcoinnya back;

Bitcoin transaction is pseudonymous

All transactions that have been done at the same time Bitcoin balance of a person we can see, but we do not know who owns the Bitcoin address if the owner did not tell him. Each user can choose whether Bitcoin actual name you want displayed or not, but even if the user wishes to keep her identity, all transactions still recorded and can be monitored by the public.

Bitcoin is not controlled by any government agency or

Bitcoin is using the database Blockchain not controlled by one party, it is very open to the public so it is impossible for someone to falsify transactions in Blockchain. All transactions recorded live, transparent, and spread to millions of servers. Those who want to change or falsifying data Bitcoin transactions, should pave the millions of servers at the same time.

limited number

Bitcoin supply will only be 21 million Bitcoin worldwide. Bitcoin creation system dwindling every 4 years is reminiscent of deflation and economic system based on the increasingly limited supply bitcoin, bitcoin prices tend to rise.

You can transfer bitcoin to anywhere in the world as long as it is connected to the Internet. Bitcoin will be deposited into Bitcoin Wallet. Wallet must be installed on both sides, can with a PC / laptop, tablet or smartphone. After installing the wallet, you will get a Bitcoin Address. Bitcoin is very easy to transfer, open the wallet, enter Bitcoin Address of the opponent bitcoin transactions and the amount you want to transfer, then send.

Then you might ask, if there is no bank or company that manages such as PayPal or e-gold, and financial data is stored where? The answer, on your own computer (in the wallet) and peer to peer networks all over the world. Bitcoin money stored on your computer in the wallet. If the computer is damaged tantamount bitcoin money you lost, so bitcoin wallet should be backed up regularly to multiple devices. When conducting a transaction, tens of thousands of computers in the bitcoin network will verify the data you input so there is no cheating.

Why do people start to roll in buying and using bitcoin?

Bitcoin was developed with the ideals that the currency is either not controlled by the government or the central bank. The financial crisis some time ago confirms that the government always negligent in maintaining economic stability. The government is believed to have always occupied by people who are corrupt and only works for personal gain, making financial decisions always favor the mere conglomerate.

This concept appeals to many people, especially the geeks in the IT world. They began to invest their assets in the form of bitcoin, while the world economy is increasingly unstable as evidenced by their American and European banking crisis. Bitcoin is believed to be a universal currency and commodity prices will continue to soar so high. And this is proven, see this year alone (January 2013) 1 BTC (unit of currency bitcoin) traded at a price range of 13 USD, whereas now (May 2013) 1 BTC appreciated value of 120 USD, this means that for 5 months worth of bitcoin have soared nearly 10-fold. Now 1 BTC appreciated the value of 860 USD (December 2013) means soared 66-fold in one year. If two years ago (early 2011) fraudulent purchase bitcoin worth 0.3 USD, I congratulate you for being a millionaire 😀

Bitcoin also has two very interesting features that it is anonymous and transaction costs are very low (close to 0). You can make transactions without giving identity at all, it can keep your privacy to the highest level.

Who publishes Bitcoin?

The new Bitcoin was created by a process called “mining”. The miner uses a sophisticated computer to decipher the complex mathematics to find a new block Bitcoin, as a reward the finder will be rewarded with a number of bitcoin. Prize per the discovery of one block originally there were 50 BTC, now 25 BTC / block, the next will continue to decrease accompanied by bertambahkan circulation Bitcoin. The system has ensured that the maximum bitcoin in circulation in the world is 21 million BTC so there will be inflation.

Safe Is Bitcoin?

You might think that the open source bitcoin system allows a computer genius can break into the system and publishes a number of bitcoin bitcoin for himself. In fact this system has been reviewed by many as being flawless. Each of the past transaction data stored in each peer across the network, and in any sequence. Each new transaction will be verified by a number of new peer declared invalid.

Bitcoin system is safe, unsafe and money exchangers users. Just like internet banking passwords, hackers can easily steal money from you if a computer virus.

How do I get Bitcoin?

You dapet earn bitcoin by buying and mining. To purchase bitcoin exchanger can be done in-exchanger as bitcoin.co.id (Indonesia), mtgox (US and Japan), and btcchina.com (China).

Whether buying Bitcoin will be profitable?

This question is like the question what stocks should be bought tomorrow. No one can be sure. But if I see from the media covering developments caused enthusiasm for bitcoin everywhere will create a very high demand. I believe prices will continue to soar many times, I myself began to invest some money into bitcoin. But of course I am not responsible for any losses that will be experienced if the reader. Capitalized value of bitcoin now is about 1.3 billion USD, or about 13 trillion IDR 11 Billion USD or 130 trillion rupiah (updated December 14, 2013), but this is still the beginning of a lot of people who do not know Bitcoin.


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