BTC, short for Bitcoin, is a decentralized virtual currency found by Satoshi Nakamoto. The inventor or anonymous group published a white paper in 2008 as a proof of concept, then released it as an open source prototype software in 2009. Bitcoin uses peer-to-peer technology to operate without central authority or banking institutions; Managing transactions and issuing new BTCs, also known as mining, is done collectively by the network. Bitcoin has many unique characteristics compared to traditional credit cards such as international payments, low transaction costs, unchangeable transactions for online stores, and security through encryption.
HOW IS A NEW BITCOIN MADE?
Bitcoin is only made as a reward for work proof involving cryptographic hash called mining. Users offer their computing power to verify and record payments to a general ledger known as blockchain. Bitcoin that has been mined is outstanding and can be exchanged for goods and services. There will be only 21 million bitcoins available and the last bitcoin fragments will be obtained by miners in 2140. If this great bitcoin experiment works and people still use it afterwards, BTC miners will be exclusively supported by a small transaction fee for your transaction inserted quickly into the blockchain. However, these coins can be divided into smaller units, unlike ordinary bitcoin bits that can be split up to 10 ^ 8, which means that over time, people will have the ability to use bitcoins a bit small to buy goods. The smallest unit that is split from bitcoin is named 'Satoshi'.
HOW IS BITCOIN PRICE COUNTED?
Bitcoin prices are determined by supply and demand. As demand for bitcoin increases, prices rise and as demand falls, prices fall. There are only a few BTCs in circulation and new bitcoins are made at an estimated rate of diminution. Demand must follow this level of inflation to keep prices stable.
WHY PEOPLE BELIEVE BITCOIN?
Unlike the centralized fiat payment system, Bitcoin is fully open-source and decentralized. Transactions can be independently verified at any time. Bitcoin payments can be made instantly and directly without intermediaries. The entire system is protected by a combination of elliptic curve cryptography and hashing on the sha256 curve. Simultaneously this mechanism provides enough space of a large enough random key that can not be attacked by hackers or mocked through math.
WHO IS CONTROLLING BITCOIN NETWORKS?
No organization or individual is in full control of the entire network. The Bitcoin network has no dependence on a central authority or a single administrator. Managing transactions and issuing new bitcoins is done collectively on the blockchain mentioned above. The Bitcoin protocol itself can not be modified without the cooperation of all its users in updating the software as a whole.
WHAT ARE THE CHARACTERS OF MAKING A DIFFERENT BITCOIN WITH CONVENTIONAL MONEY?
Bitcoin has several different features from government supported currencies:
The highly decentralized nature of Bitcoin distinguishes it from conventional money issued by central banks or federal agencies.
It is very easy to setup Bitcoin Software and Take Payment. Unlike conventional bank accounts, you can set bitcoin addresses in seconds without cost or documentation.
The anonymous nature of Bitcoin differentiates it from conventional money. The bank account has a link to your real name and other personally identifiable information.
Transparency on blockchain makes it different from conventional money. All newly issued bitcoin and bitcoin transactions are recorded in a public view and can be viewed live.
Ease of transferring money. You can send and receive money anywhere in the world within minutes, as soon as you broadcast a transaction, confirmed and spread to other peers on the network.
You can choose your own cost when you issue bitcoin. High transaction fee payments can prompt very fast confirmation on bitcoin networks. However, the fee is not related to the amount transferred, so it's possible to send 10,000 BTC at no cost, and just wait a moment to be confirmed (up to three days.)
Bitcoin transactions are safe, irreversible, and do not contain any customer sensitive or personal information. This provides strong protection against identity theft compared to checks or credit cards.
Bitcoin, ever heard of this term? If not, in the article DSWiki this week editor Dailysocial Lifestyle want to invite you to know more closely what it Bitcoin, how to work and also the history of its appearance.
What is Bitcoin?
The simplest definition of Bitcoin is "virtual currency". Full, Bitcoin is a virtual currency that exists only in digital form. It is neither governed nor influenced by any government regulation or financial institution. If so, then Bitcoin, although functioning as a means of payment, it does not have a physical form like a sheet of paper money or coins in your wallet. But the function is the same, as a means of payment. Bitcoin can also be cashed into the official / conventional currency.
In its role in the process of buying and selling, Bitcoin can be an alternative that offers a number of conveniences. Using Bitcoin each party can keep the privacy of the data held every time a payment is made. Consumers no longer need to inform personal data and financial data each time an online transaction.
History of Bitcoin
Bitcoin is a translation of a concept called "cryptocurrency" first established by Wei Dai in 1998. This concept emphasizes the control system that governs the creation and also the transaction, where the cryptographic algorithm governs only the owner of Bitcoin who can use the money, each of the Bitcoin owners acts as a user as well as a currency regulator, not by any government or agency.
The first Bitcoin currency was published by Satoshi Nakamoto in 2009. Yet a year later he left the Bitcoin project without much exposure as to who he was. But the development of Bitcoin continues to run with the emergence of new developers in the community, even its open source-based applications can be downloaded by developers who want to re-review the code line in it or make their own version of Bitcoin app.
How Bitcoin Works
Bitcoin uses a peer-to-peer network without centralized storage, which means it can be transferred anywhere as long as there is an internet network. The currency owned by someone will be stored in an application called Bitcoin Wallet. So, you will not receive money in any physical form other than an application in your gadget. This app must be installed on the receiver's computer and tablet or smartphone. Furthermore Bitcoin owners will get the name Bitcoin Address which is useful to receive Bitcoin submissions like email addresses. All computers connected to the Bitcoin network will be the same regulator that verifies the transaction data to prevent fraud.
What are the advantages of Bitcoin?
Bitcoin has several advantages over conventional currency, among others
Without limits, it can be sent anywhere in and around the world at any time.
Transfer fee is relatively small even 0.
Minimal risks, are relatively safer and do not use personal information of an important or confidential nature.
Neutral and transparent, you can even view and verify in real-time the supply and availability of Bitcoin block chains. As has been said before, no institution can arrange or manipulate Bitcoin.
What is Bitcoin's Weakness?
Besides the advantages, Bitcoin also has some disadvantages. For example:
There are still many people who have not received Bitcoin as a valid payment instrument.
Total circulation and companies / organizations that receive Bitcoin are still relatively small
The Bitcoin app is still in beta phase so there are many features that are under development and not yet usable.
How to Get Bitcoin
There are two ways to get Bitcoin legally, first by buying from an authorized exchanger. Second by following Bitcoin mining. If you want a quick and easy, choose the first method. Because the second way requires a sophisticated computer called Application-Specific Integrated Circuit (ASIC) and the procedure is not easy.
Bitcoin in Indonesia
Bitcoin since several years ago has penetrated Indonesia, although its utilization is still very limited. This condition is influenced by the statement of the highest financial authority in the homeland, Bank Indonesia which prohibits the use of Bitcoin. The study of how the use of Bitcoin in Indonesia itself is still carried out although it seems to take a long time.
Responding to the ban, Oscar Darmawan of Bitcoin Indonesia, judged it to be inappropriate because they think Bitcoin is not a currency as regulated by the law. Bitcoin is more of a transfer medium when used for transactions.
In Indonesia itself according to Bitdoku founder Tiyo Triyanto the number of bitcoin usage continues to grow every year.
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