Understanding Bitcoin In this era of rapid technological development, various digital asset innovations have emerged. One of the digital asset innovations that are popular today is crypto currency or in English “Cryptocurrency”. In this article the focus of our discussion is not about crypto, but the understanding of bitcoin.
Then what is the relationship between crypto and bitcoin on digital asset innovation? To answer this question consider the following explanations:
What Is Bitcoin?
Bitcoin is a type of digital currency or electronic money that has no physical form. The bitcoin currency Understanding Bitcoin was first created in 2009 by a person under the pseudonym “Satoshi Nakamoto”.
There is no authority or agency that regulates or controls bitcoin, so bitcoin does not have a centralized organizational body.
Bitcoin transactions are verified using a technology known as the blockchain. This is what makes every bitcoin transaction on the internet not using the services of a third party such as a bank.
Besides bitcoin itself also uses a P2P (Peer to Peer) system which does not have a single storage and administrator in it. This is why the United States Department of the Treasury calls bitcoin a decentralized currency.
Bitcoin itself is not only issued by one publisher but can be published by several publishers. This is what makes the bitcoin currency unlike any other currency.
Did you know that bitcoin is a type of crypto currency that uses a database system. Furthermore, it is distributed and propagated to several P2P network nodes to the Transaction journal.
History Of Bitcoin
Talking about the development of bitcoin that is so fast, it can’t be separated from its long history. Bitcoin first appeared on Internet transactions in 2009.
At first the transaction was carried out by a developer who nicknamed himself by the name of Satoshi Nakamoto. At that time Satoshi was making transactions with a bitcoin user via the internet. However, did you know that bitcoin was released in 2008. But at that time bitcoin was not yet known as an open source software.
Bitcoin itself has an initial concept published on a white paper written by someone who claims to be Satoshi Nakamoto. Until now, there is no source who really knows who Satoshi Nakamoto is. Because from the start the author’s real identity was hidden. As a result no one knows whether Satoshi Nakamoto is a group of people or an individual.
After a few years after its appearance, a bitcoin exchange system began to be built. The exchange system was originally inspired by the concept of a digital currency that appeared in 1999, namely Wei Dai. The difference is, Nakamoto protects bitcoin with a good security system and is regularly modified.
How Bitcoin Works
In its form, bitcoin is a file on a computer that is stored in an e-wallet application (digital wallet) that is on gadgets, both smartphones and laptops.
This is what also makes bitcoin owners carry out transactions by transferring their digital money using e-wallet. Every transaction movement that occurs will be recorded Understanding Bitcoin automatically in the public space which is commonly called the ‘blockchain’.
Existing transactions can be tracked in the bitcoin history feature. This makes it possible to prevent fraudulent acts or bitcoin theft.
Then the question is, how do you get bitcoins? Here’s how:
- Mining bitcoin using computer device
- Buying bitcoin through a provider using physical (real) money
- Sell products with bitcoin as payment
Bitcoin Playing Risks
Every currency has its own risks, whether it’s eroded by inflation or sudden price fluctuations. This type of currency bitcoin is no exception.
Among the many risks playing bitcoin, volatility is the biggest risk. Where bitcoin has price fluctuations that are very fast and can change drastically in the blink of an eye.
What is even more stressful is that no one can predict with certainty when bitcoin will rise or fall.
Well, this is something that needs to be taken into consideration for those of you who want to invest in bitcoin. Also make sure you don’t put all your assets in bitcoin only, so that if one day the bitcoin price drops you don’t lose too much.
Thus an explanation article about the meaning of bitcoin and various other things that you need to know. Thanks.
