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Thursday, September 28, 2017

What is Bitcoin? - 7 Features of Bitcoin as Currency

The recent sale and purchase transactions on the Internet have indeed grown so rapidly. Not only in the process of increasingly diverse transactions, now also has emerged a new virtual currency called Bitcoin. Maybe some of you there who do not know even new first heard his name.

But since it was introduced in 2009, this unique currency is in fact becoming used by some of the e-commerce actors in the world. More complete with reviews about whether and how Bitcoin role as an online transaction tool.

What Is Bitcoin?

Bitcoin is a virtual currency developed in 2009 by someone under the pseudonym of Satoshi Nakamoto. This currency is like Rupiah or Dollar, but it is only available in the digital world. The concept may sound like eGold, although it is actually much different.

The file is an encryption of the unique codes that make it unlike each other. And like any mp3 or word file you have on your computer device, Bitcoin files can also be stored in a computer or a flash disk or software called Bitcoin Digital Wallet. In addition BitCoin can also be stored in Bitcoin storage services on the Internet in the form of a social cloud.

Bitcoin as currency has the following features:
  •     Instant transfer in peer to peer.
Peer-to-peer itself means Bitcoin runs without having a central server. The storage servers are decentralized and distributed-shared to the various servers run by each user connected to the network.
  •     Transfer to anywhere
Unlike gold, Bitcoin can be sent anywhere in seconds, whenever and wherever you want. Remittances with Bitcoin can happen only with the capital of a smartphone and an internet connection.
  • Transfer fee is very small.
Shipping costs can be removed until free, but to speed up transactions, usually your Bitcoin wallet will cut costs around 500 - 3,000 rupiah, no matter how much money is sent.
  • The transaction is irreversible, meaning once transferred it can not be canceled.
Bitcoin is given to someone else's hand, the transaction can not be canceled unless the person is willing to send the Bitcoin back;
  • Bitcoin transactions are pseudonymous.
All transactions ever done at once Bitcoin balances possessed by someone we can see, but we do not know who the owner of the Bitcoin address if the owner does not tell it. Each Bitcoin user can actually choose whether or not his name will appear, but even if the user wants to keep his identity secret, all transactions are kept public and recorded.
  • Bitcoin is not controlled by any agency or government.
Bitcoin using the Blockchain database is not controlled by a party, but is so open to the public that it is impossible for someone to forge transactions in Blockchain. All transactions are recorded live, transparent, and spread over millions of servers. Those who want to alter or falsify Bitcoin transaction data, must hack millions of servers at the same time.
  • The amount is limited
Bitcoin supply will only be 21 million Bitcoin worldwide. Bitcoin's system of declining creation every four years resembles an economic system based on deflation and with the increasing supply of 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 stored into the Bitcoin Wallet. This wallet must be installed on both sides, can be with PC / laptop, tablet or smartphone. After installing the wallet, you will get a Bitcoin Address. For bitcoin transfer is very easy, open the wallet application, input Bitcoin Address of the transaction opponent and the number of bitcoin you want to transfer, then send.Then you may ask, if there is no bank or company that manage as well as paypal or egold, then financial data stored where? The answer, on your own computer (in wallet) and peer to peer network around the world. Bitcoin money stored on your computer inside the wallet. If the computer breaks down your bitcoin money is gone, so bitcoin wallet must be backed up regularly to some devices. When making transactions, 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 mix and buy bitcoins?

Bitcoin is developed with the idealism that a good currency is not controlled by the government or central bank. The financial crisis some time ago confirms that the government is always negligent in maintaining economic stability. The government is always believed to be dominated by corrupt people and only works for personal gain, so financial decisions are always on the side of a mere conglomerate.This concept appeals to many people especially geek in the IT world. They start investing their assets in bitcoin, while the world's economy is increasingly unstable as evidenced by the banking crisis of America and Europe. Bitcoin is believed to be a currency and a universal commodity so that prices will continue to soar.

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

The new bitcoin is created by a process called "mining". Miners use sophisticated computers to decipher the complex mathematics to discover the new block of Bitcoin, as a reward the inventor will be rewarded with a number of bitcoins. Prize per 1 block discovery initially has 50 BTC, now 25 BTC / block, then will continue to decrease along with add Bitcoin circulation. The system has ensured that the maximum bitcoin in the world is 21 Million BTC so there will be no inflation.

Is Bitcoin Safe?

You might think that an open source bitcoin system allows a genius computer to break into a bitcoin system and publish a number of bitcoins for itself. In fact this system has been reviewed by various circles as flawless. Any past transaction data is stored in all peers across the network, and should be in order. Each new transaction will be verified by a number of newly declared valid peers.Secure, insecure bitcoin systems are users and money exchangers. Just like internet banking passwords, hackers can easily steal some money from you if the computer is infected with a virus.

How to get Bitcoin?

You can get bitcoin by buying and mining. To buy bitcoin can be done in exchangers such as (indonesia), mtgox (US & Japan), and (China).

Will buying Bitcoin be profitable?

This question is like what stock questions to buy tomorrow. No one can be sure. But if I see from the media developments that cover the enthusiasm will bitcoin everywhere will create a very high demand. I believe prices will continue to soar many times over, I myself start investing some money into bitcoin. But of course I am not responsible for any losses that if it will be experienced by readers. The capitalization value of bitcoin is now about 11 Billion USD (updated December 14, 2013), but this is still the beginning of many people who do not know about Bitcoin.


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