What is Bitcoin and How to get bitcoin ?

What is Bitcoin How to get bitcoin ?

It has long been the name bitcoin heard and people enthusiastically transact or invest in one of these types of cryptocurrencies.

The profit is also so lucrative because the increase in valuation over time is so extraordinary.

In United States itself has many user bases, and some companies stand specifically to be a platform to buy and sell (transaction) bitcoin.

Bitcoin is often regarded as a new investment instrument that has the potential to maximize profits.

Up to this stage, you may already be interested in getting to know more about what bitcoin is, how bitcoin works.

Let’s see more details below!

1. Definition and How Bitcoin Works

Bitcoin is a new currency or electronic money created in 2009 by someone using the pseudonym Satoshi Nakamoto.

Bitcoin is mainly used in transactions on the internet without the use of intermediaries aliases do not use the services of banks.

Just like KoinP2P from KoinWorks, bitcoin uses a peer to peer (P2P) system.

However, the system works without storage or a single 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 spread 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 have 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.

Many people also only sell bitcoin as one of the profitable investing activities, and many become wealthy because of it.

This is influenced by the price of bitcoin which reached hundreds of millions of rupiah in 2017.

Unlike money usually held in bank accounts, bitcoins are essentially stored on personal computers in the wallet file format, or stored in wallets provided by third parties.

Ownership also does not require identity, alias can be owned by an anonymous person.

2. Bitcoin’s Security Dilemma and User Anonymity

Because its holdings can be anonymous, bitcoin is often used as a method of money laundering and various other criminal acts.

Bitcoin 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 be manipulated whether it is by a particular entity, either a cybersecurity authority or any government.

So the price of bitcoin is difficult to influence by inflation because of the difficulty of producing large amounts of bitcoin.

With bitcoin too, transactions between countries become very easy and private because bitcoin itself is not tied to any country, law or regulation.

Please note that every bitcoin transaction is recorded in the public record but the name involved is never recorded and is always anonymous.

On the one hand, as it allows illicit transactions to occur, it is very difficult for authorities to track down anyone involved in various criminal acts.

Such crimes include terrorism financing, weapons purchases, narcotics, and so on due to the extraordinary level of anonymity.

3. How do I get Bitcoin?

Electronic money such as bitcoin can be stored in a digital wallet that is 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.

In addition to transactions, then how do I get bitcoin?

The most popular thing people often do is to ‘mine’ bitcoins.

People even compete against each other to mine bitcoins using their computers by solving very complex mathematical puzzles.

That’s how bitcoin is created.

Currently, the winner who successfully completes the math puzzle is awarded 12.5 bitcoins (or the equivalent of 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 or free movies in general even slip viruses in the form of javascript and automatically installed on the visitor’s computer.

Then the virus will ‘mine’ the bitcoins on the visitor’s computer, causing the computer to become slow and start to overheat easily.

In addition to ‘mining’ and transactions between users, another way to get bitcoin that is now very famous is through trading.

Many companies become marketplace platforms that are specialized in bitcoin trading.

Bitcoin is now traded following the prevailing exchange rate.

Only 1 bitcoin, the valuation can be equivalent to Rp 115 million more. crazy!

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