The Digital Currency That Continues to Hit

In recent days, the Bitcoin currency has been widely discussed by netizens. Why not? After the price had fallen because China banned Bitcoin trading, the Bitcoin price has now soared more than 480%. The price of Bitcoin at the time of writing this article reached US$ 5,804.90, equivalent to Rp. 78,023,660.90 (1 US$ = Rp. 13,441.00).

What exactly is Bitcoin?

Bitcoin is an electronic money created in 2009 by Satoshi Nakamoto. The name is also associated with the open source software he designed, and also uses a peer-to-peer network without centralized storage. Bitcoin uses a database that is distributed and propagated to the nodes of a P2P network to a transaction journal, and uses cryptography to provide basic security functions, such as ensuring that Bitcoin can only be used by the person who owns it and is never used more than once. .

This currency is like Rupiah or Dollar, but is only available in the digital world. Bitcoin as a currency has the following features:

  1. Instant peer to peer transfer. The storage servers are decentralized and distributed (shared across multiple servers) that are run by every user connected to the network.
  2. Transfer to anywhere. Bitcoins can be sent anywhere in seconds, whenever and from wherever you want. Sending money with Bitcoin can happen with just a smartphone and an internet connection.
  3. The transfer fee is very small. Sending fees can also be eliminated for free, but to speed up transactions, usually your Bitcoin wallet will cut costs by around 500 – 3,000 rupiah, no matter how much money is sent.
  4. Transactions are irreversible, meaning that once transferred cannot be canceled. Bitcoin is given into the hands of another person, the transaction cannot be canceled unless that person is willing to send the Bitcoin back.
  5. Bitcoin transactions are pseudonymous. We can see all the transactions that have been made as well as the Bitcoin balance that someone has, but we don’t know who the owner of the Bitcoin address is if the owner doesn’t tell us.
  6. Bitcoin is not controlled by any institution or government. Bitcoins that use Blockchain databases are not controlled by a party, but are so open to the public that it is impossible for someone to fake transactions on the Blockchain.
  7. The number is limited. The supply of Bitcoin will only be 21 million Bitcoins worldwide. The Bitcoin creation system which continues to decrease every 4 years is like an economic system based on deflation and with the increasingly limited supply of bitcoin, the price of bitcoin tends to rise.

Is the Bitcoin system secure?

In fact this system has been reviewed by various circles as flawless. Each transaction data is stored in all the peers across the network and must be sequential. Each new transaction will be verified by a number of new peers declared valid. You can get Bitcoin by buying and mining. Buying Bitcoin can be done at exchanges such as: bitcoin.co.id (Indonesia), mtgox (US & Japan), and btcchina.com (China).

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