Bitcoin, Know, Usefulness, Advantages, Security, Transaction and Validity

fariz (49)in #bitcoin • 6 years ago

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What is Bitcoin?

Bitcoin is a consensus network that enables new payment systems and money that are entirely digital. Bitcoin is the first decentralized peer-to-peer payment network that is fully controlled by its users without central or intermediary authority. From the user's point of view, Bitcoin is similar to cash in the internet world. Bitcoin can also be viewed as the most prominent record keeping system currently available.

Who created Bitcoin?

Bitcoin is the first implementation of a concept called "cryptocurrency", first described in 1998 by Wei Dai in the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control manufacture and transactions, instead of using centralized authority. The first Bitcoin specification and proof of concept were published in 2009 in a cryptographic mailing list by Satoshi Nakamoto. Satoshi left the project at the end of 2010 without telling much about him. Bitcoin community is growing rapidly as many developers are working on Bitcoin.

Satoshi's anonymity often raises false concerns, mostly related to a misunderstanding of the nature of open source-based Bitcoin. Bitcoin protocols and software are published publicly and developers from around the world can review the code or create their own modified version of Bitcoin software. Just as with current developers, Satoshi's influence is limited to some of the changes he created and adopted by other developers, and he does not control Bitcoin. Thus, finding the identity of the inventor of Bitcoin is now just like finding the identity of the inventor of the newspaper.

Who controls the Bitcoin network?

No one has a Bitcoin network, just as no one has email operation technology. Bitcoin is controlled by all its users worldwide. Developers can indeed improve Bitcoin software, but they can not enforce changes in the Bitcoin protocol because all users are free to choose the software and version they want to use. In order to remain compatible with each other, all users need to use software that follows the same rules. Bitcoin works only when there is full consensus among all users. Thus, all users and developers have a strong incentive to protect this consensus.

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Bagaimana cara kerja Bitcoin?

How does Bitcoin work?

From a user point of view, Bitcoin is nothing more than a mobile app or a computer program that provides a Bitcoin wallet and allows users to send and receive bitcoins. This is how Bitcoin works for most users.

Behind the scenes, the Bitcoin network shares a public record called "chain-block". This record contains all transactions ever processed, enabling the user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures related to the sender's address, allowing all users to have full control over the bitcoin delivery from their Bitcoin address. In addition, anyone can process transactions using special hardware counting power and get a gift in bitcoin for this service. This activity is often referred to as "mining". To learn more about Bitcoin, you can go to special pages and original newspapers.

Is Bitcoin really used by many people?

Yes. There are many businesses and individuals who use Bitcoin. Includes physical businesses in the real world such as restaurants, apartments, law firms, as well as popular online services such as Namecheap, WordPress, Reddit, and Flattr. Although Bitcoin is a new phenomenon, it is growing very rapidly. At the end of August 2013, the total value of all outstanding bitcoin exceeds $ 1.5 billion, with billions of dollars worth of bitcoin transactions done on a daily basis.

How to get bitcoin?

As payment for goods and services.

Buy bitcoin by Bitcoin exchange.

Exchange bitcoin with someone near you.

Get bitcoin through competitive mining.

While it is still possible to find individuals who intend to sell bitcoin in exchange for credit card or PayPal payments, most transactions do not allow payment through these methods. This is because the cases where someone bought bitcoin using PayPal, then canceled half their transactions. Such cases are usually called "chargebacks".

Is it hard to make a payment using Bitcoin?

Bitcoin payments are easier than credit or debit cards, and can be accepted without a seller account. Payments are made through the wallet application, either on your computer or phone, by entering the recipient's address, payment amount, and hit send. To make it easier to enter recipient .

What are the benefits of using Bitcoin?

Freedom of Payment - Allows you to send and receive money instantly anywhere and anytime. No bank holiday. No country borders. No restrictions apply. Bitcoin gives its users full control over their money.
Very Low Cost - Bitcoin payments are currently processed at no cost or at a very low cost. Users can enter a fee in a transaction to get priority process, so get faster transaction confirmation by network. In addition, the seller processor is there to assist the seller in the transaction process, converting bitcoins into conventional fiat currency, and putting money directly into the seller's bank account each day. Since all of these services are Bitcoin based, the required cost is much lower than the credit card network or PayPal.

Low risk for sellers - Bitcoin transactions are very secure, irrevocable, and do not contain any personal or sensitive information from customers. This protects the seller from losses due to fraud or chargeback cheating, as well as unnecessary PCI adjustments. Sellers can easily expand into new markets where credit cards are not available and fraud rates are very high. The end result of Bitcoin is lower cost, wider market, and fewer administrative expenditures,

Security and control - Bitcoin users have full control over their transactions; it is not possible for sellers to create unwanted or unnecessary bills as can happen with other payment methods. Payment with Bitcoin can be made without including a personal identifier for the payment process. This provides strong protection from identity thieves. Bitcoin users can also protect their money with backup and encryption.

Transparent and neutral - All information related to the Bitcoin money supply is available in the chain for anyone who wants to verify or use it in real time. No individual or organization can control or manipulate the Bitcoin protocol because it is very cryptographically safe. This allows the Bitcoin nucleus to be completely neutral, transparent, and predictable.

What are the disadvantages of using Bitcoin?

Level of acceptance - Many people are still unaware of the existence of Bitcoin. Every day, more and more businesses are receiving bitcoin because they want to profit from bitcoin usage, but still the user list is still small and needs to grow to benefit from network effects.

Volatility - The total value of the bitcoin in circulation and the number of businesses using Bitcoin is still very small compared to what it should be. Therefore, small events, trade, or business activities can significantly affect bitcoin prices. In theory, this volatility will decrease as the market and technology of Bitcoin develop. Never before has there been a self-created currency, so it is very difficult (and interesting) to imagine what will happen

Ongoing development - Bitcoin software is still in beta with many incomplete features that are still being developed actively. New devices, features and services are being developed to make Bitcoin more secure and accessible to the public. Some of these developments are still not ready for everyone. Most Bitcoin businesses are still new and have not offered insurance. In general, Bitcoin is still in the process of growing up.

Why do so many people believe in Bitcoin?
Most trust in Bitcoin comes from the fact that Bitcoin does not require any trust at all. Bitcoin is entirely open-source and decentralized. This means everyone has access to the entire source code at any time. All the developers in the world can verify exactly how Bitcoin works. All published transactions and bitcoins can be viewed in a transparent and real-time manner by anyone. All payments can be made without being dependent on third parties and the entire system is protected by a peer-reviewed cryptography algorithm as used in online banking. No organization or individual can control Bitcoin, and the network remains secure even though not all users can be trusted.

Can I earn money with Bitcoin?

You should not expect to be rich with Bitcoin or with the emergence of other latest technologies. It is important to be careful of anything that sounds too good to be true or to be against the basic principles of economics.

Bitcoin is a growing innovation and is a business opportunity that also has risks. There is no guarantee that Bitcoin will continue to grow even though it has grown so rapidly to date. Investing time and resources on everything associated with Bitcoin requires entrepreneurial skills. There are many ways to make money with Bitcoin like mining, speculation or running a new business. All of these methods are competitive and there is no guarantee of profit. It all depends on each individual to make an evaluation of the costs and risks that may arise in any project.

Is Bitcoin entirely virtual and intangible?

Bitcoin is virtual like credit card and online banking network that we use every day. Bitcoin can be used for online and in-store payments as well as conventional money. Bitcoin can also be exchanged for material forms such as Casascius coins, but payments with mobile phones are usually easier. Bitcoin balances are stored on a large distribution network and these balances can not be cheated or altered by anyone. In other words, Bitcoin users have exclusive control over their money and bitcoin can not be lost simply because it is virtual.

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http://fortune.com/2017/05/09/bitcoin-all-time-high/

Is Bitcoin Anonymous?

Bitcoin is designed to allow users to send and receive payments with a sufficient level of privacy as well as other forms of money. However, Bitcoin is not anonymous and can not provide the same level of privacy as cash. The use of Bitcoin requires extensive public listing. There are various mechanisms to protect user privacy, and more are being developed. However, there is still work to be done before these features can be properly used by most Bitcoin users.

Some concerns have arisen regarding personal transactions may be used for illegal use by using Bitcoin. However, it should be noted that Bitcoin will be part of the existing rules of the financial system. Bitcoin can not be more anonymous than cash and will not complicate the procurement of criminal investigations when necessary. In addition, Bitcoin is also designed to prevent financial crime in large numbers.

What happens when bitcoin is lost?

When a user loses his wallet, this affects the loss of money from circulation. The missing bitcoin is still in the chain-like blocks of other bitcoins. However, the missing bitcoin will remain inactive forever because there is no way anyone can find a private key that allows it to be used again. Because of the law of necessity and supply, when bitcoin is in circulation only slightly, then the remaining amount will be more needed and has a higher value as a result.

DIs Bitcoin Anonymous?

What happens when bitcoin is lost?

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