Bitcoin

What is Bitcoin?

The simplest understanding of Bitcoin is "virtual currency". Bitcoin is a virtual currency that only exists in digital form. He cannot be regulated or influenced by any government or financial institution regulations. Although Bitcoin functions as a payment instrument, it does not have physical forms such as banknotes or coins in our wallets. But the function is the same as a payment instrument. Bitcoin can also be cashed into official/conventional currency.

In the process of buying and selling, Bitcoin can be an alternative that offers a number of conveniences. Each party can keep the privacy of the data held every time they make payments using Bitcoin and no longer need to inform their personal data and financial data every time they make an online transaction.

Bitcoin history

The concept of bitcoin in the control system regulates the creation and transaction, where cryptographic algorithms only regulate the owner of Bitcoin who can use the digital money, each of the Bitcoin owners acts as the user and regulator of the currency, not by certain government or other institutions.

Bitcoin (cryptocurrency) currency was first created by Satoshi Nakamoto in 2009. But 1 year later he left the Bitcoin project without revealing who he really was. But the development of Bitcoin continues with the emergence of new developers in the community,

How Does Bitcoin Work?

Bitcoin uses a peer-to-peer network without storage centered on something, meaning that bitcoin can be sent anywhere as long as there is an internet network. The currency owned by someone will be stored in an application called Bitcoin Wallet. So, we will not receive money in a physical form other than in the form of value in our gadget. The application must be installed in our computer, tablet or smartphone receiver and sender. Furthermore, the owner of Bitcoin will get a Bitcoin Address that has uses to accept Bitcoin shipments such as email addresses. All computers connected to the Bitcoin network will become regulators as well as verify transaction data.

What are the advantages of Bitcoin?

Bitcoin has several advantages over conventional currencies, including:
1. No limit, he can be sent anywhere in the world.
2. Small shipping costs even 0.
3. The risk is minimal, safer and does not use personal information that is important or very confidential.
4. Neutral and transparent, we can see and verify in time. As discussed earlier, none of the institutions can regulate or exploit Bitcoin.

What are the Weaknesses of Bitcoin?

Besides the advantages, Bitcoin also has several disadvantages such as:
1. There are still many people who have not received Bitcoin as a legitimate payment instrument.
2. Total circulation and companies/organizations that accept Bitcoin are still small
3. The Bitcoin application is still in beta so there are many features that are under development and cannot be used.

How to get Bitcoin, how?

There are two ways to get Bitcoin,
1. Buy from an official exchanger.
2. Secondly by following Bitcoin mining.
If we want fast and easy, choose method 1. Because method 2 requires a sophisticated computer called Application Specific Integrated Circuit (ASIC) and the procedure is not easy.

Sources: Bitcoin, Wikipedia, and Bitcoin.org

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