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.

Bitcoin as currency has the following features:

  • Peer to peer instant transfer.

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 every 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 a smartphone's capital and internet connection.

  • The transfer fee is very small.
  • Shipping costs can be eliminated until free, but to speed up transactions, your Bitcoin wallet will usually cost you around 500 - 3,000 rupiah, regardless of how much money you send.

    • Transactions are irreversible, meaning once transferred irrevocably.

    Bitcoin is given to someone else's hand, the transaction can not be canceled unless the person is willing to send the Bitcoin back;

    • The bitcoin transaction is pseudonymous.
    • All transactions ever done at the same time 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 his or her name will appear or not, but even if the user wants to keep his identity secret, all of his transactions are kept public and publicly monitored.

      • 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 by live, transparent, and spread to millions of servers. Those who want to alter or falsify the Bitcoin transaction data, must hijack the millions of servers at the same time.

        • The numbers are 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 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 app, input Bitcoin Address of the transaction opponent and the number of bitcoins you want to transfer, then send.

        Then you may ask, if there is no bank or company that manage like paypal or egold, then financial data is 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 your computer breaks down your bitcoin money is gone, so bitcoin wallet must be backed up regularly to some devices. When making a transaction, tens of thousands of computers inside the bitcoin network will verify the data you input so there is no cheating.

        Why do people start rolling around and using bitcoin?

        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 believed to always be controlled by corrupt people and only works for personal gain, so financial decisions always take sides with a mere conglomerate.

        This concept appeals to many people, especially geeks 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. And this is evident, look at this year alone (January 2013) 1 BTC (bitcoin currency unit) traded at a price range of 13 USD, whereas now (May 2013) 1 BTC is appreciated with a value of 120 USD, this means for 5 months value bitcoin has soared almost 10 times. Now 1 BTC is appreciated with a value of 860 USD (December 2013) means soar 66 fold in 1 year. If 2 years ago (early 2011) you fun to buy bitcoin for 0.3 USD, I congratulate you on being a millionaire 😀

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