What is Bitcoin

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:

Instant transfer in peer to peer.
Peer-to-peer itself means Bitcoin runs without having a central server. The storage servers are decentralized and distributed-divided into the various servers run by each 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 the capital of a smartphone and an internet connection.

Transfer fee is very small.
Shipping costs can be removed until free, but to speed up transactions, usually your Bitcoin wallet will cut costs around 500 - 3,000 rupiah, no matter how much money is sent.

The transaction is irreversible, meaning once transferred it can not be canceled.
Bitcoin is given to someone else's hand, the transaction can not be canceled unless the person is willing to send the Bitcoin back;

Bitcoin transactions are pseudonymous.
All transactions ever done at once 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. Any Bitcoin user can actually choose whether or not his name will appear, but even if the user wants to keep his identity secret, all of his transactions are still recorded and publicly monitorable.

Bitcoin is not controlled by any agency or government.
Bitcoin using the Blockchain database is not controlled by a party, but is very open to the public making it impossible for someone to forge transactions in Blockchain. All transactions are recorded live, transparent, and spread over millions of servers. Those who want to alter or falsify Bitcoin transaction data, must hack millions of servers at the same time.

The amount is limited
Bitcoin supply will only be 21 million Bitcoin worldwide. Bitcoin's declining system of 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 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 application, input Bitcoin Address of the transaction opponent and the number of bitcoin you want to transfer, then send.

Then you may ask, if there is no bank or company that manage as well as 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 is stored on your computer inside the wallet. If the computer breaks down your bitcoin money is gone, so bitcoin wallet must be backed up regularly to some devices. When making transactions, tens of thousands of computers in the bitcoin network will verify the data you input so there is no cheating.

Why do people start hawking 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 always believed to be dominated 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 geek in the IT world. They start investing their assets in bitcoin, while the world's economy is increasingly unstable as evidenced by the American and European banking crisis. Bitcoin is believed to be a currency and a universal commodity so that prices will continue to soar. This BTC (bitcoin currency unit) is traded at a price of 13 USD, while now (May 2013) 1 BTC is appreciated with a value of 120 USD, this means that for 5 months the value of bitcoin has soared almost 10-fold. 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 are idly buying bitcoin for 0.3 USD, I congratulate you on being a millionaire 😀