What is Bitcoin? Check out the Full Explanation about Bitcoin! – In recent years, the name bitcoin has become increasingly heard as an instrument in the financial world that is said to be able to generate a lot of profits.
Many people end up enthusiastic about transacting and investing in one of these types of cryptocurrencies.
The profit is also so tempting because the increase in its valuation over time is so amazing.
In Indonesia itself, there is already a lot of user base, and several companies have been established specifically to become platforms for buying and selling (transacting) bitcoin.
Bitcoin is often regarded as a potential new investment instrument in maximizing profits.
Up to this point, you may already be interested in getting to know more about what bitcoin is, how bitcoin works.
Is it true that bitcoin can bring a lot of profit?
How does bitcoin work?
Come on, see the full explanation below!
1. Definition and How Bitcoin Works
Bitcoin is a new currency or electronic money that was created in 2009 by someone who used the pseudonym Satoshi Nakamoto.
Bitcoin is mainly used in transactions on the internet without using intermediaries or not using the services of banks.
Just like CoinP2P from KoinWorks, bitcoin uses a peer to peer (P2P) system.
It's just that the system works without a single storage or administrator where the United States Treasury department calls bitcoin a decentralized currency.
Unlike other currencies in general, bitcoin does not depend on one major issuer.
Bitcoin uses a database that is distributed and spreads to nodes from a P2P network to a transaction journal.
It also uses cryptography to provide a variety of basic security functions, such as ensuring that bitcoin can only be used by people who do own it, and should never be done more than once.
As a result, bitcoin can be used in various types of transactions such as buying internet servers, buying fashion products and so on.
There are also many people who only trade bitcoin as one of the profitable investment activities, and many become wealthy because of it.
This was influenced by the price of bitcoin which reached hundreds of millions of rupiah in 2017.
Unlike the money that is usually stored in a bank account, bitcoins are basically stored in a personal computer with a wallet file format, or stored in a wallet provided by a third party.
Ownership also does not require an identity, aka it can be owned by an anonymous person.
2. Bitcoin's Security Dilemma and the Anonymity of Its Users
Because its ownership can be in the name of anonymity, bitcoin is often used as a method of money laundering and various other criminal acts.
Bitcoins can also be transferred over the internet to anyone with a bitcoin wallet address.
Bitcoin's P2P topology and the absence of a single administration make it very difficult to manipulate whether it is by a particular entity, whether a cybersecurity authority or any government.
So the price of bitcoin is difficult to influence by inflation because it is difficult to produce bitcoin in very large quantities.
With bitcoin too, transactions between countries become very easy and private because bitcoin itself is not tied to any country, law or regulation.
Please be aware that every bitcoin transaction is recorded in the public record but the names involved are never recorded and are always anonymous.
On the one hand, since it allows for illicit transactions to take place, it is very difficult for the authorities to track down anyone involved in various criminal acts.
Such criminal acts such as terrorism financing, the purchase of weapons, narcotics, and so on due to the extraordinary level of anonymity.
3. How to Earn Bitcoin?
Electronic money such as bitcoin can be stored in a digital wallet on a cloud server or on the owner's personal computer
The wallet in question is more like a virtual bank account that allows users to send and receive bitcoins, invest or transact.
Apart from being in the form of transactions, then how to get bitcoins?
The most popular thing that people often do is to 'mine' bitcoin.
People even compete with each other to mine bitcoin using their computers by solving very complex mathematical puzzles.
Such was the process of creating bitcoin.
Currently, the winner who successfully solves the math puzzle is rewarded with 12.5 bitcoins (or equivalent to Rp 1.4 billion) every 10 minutes.
It's amazing, isn't it?
Because it is so tempting, many websites out there such as torrent/download software providers websites or free movies in general even slip viruses in the form of javascript and are automatically installed on visitors' computers.
Then the virus will 'mine' bitcoins on the visitor's computer, causing the computer to become slow and start to overheat easily.
Apart from 'mining' and transactions between users, another way to earn bitcoins that is now very well known is through trading.
Many companies are becoming marketplace platforms that are specifically engaged in bitcoin trading.
Bitcoin is now traded at the prevailing rate.
Only 1 bitcoin, the valuation can be equivalent to more than IDR 115 million. Crazy!
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