What Is Bitcoin And How Does It Work ?

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Bitcoin, never heard this term?

If not we will get to know more closely what is Bitcoin, how to work and also the history of its appearance.

**What Is Bitcoin?**

What is BitThe simplest definition of the Bitcoin is "virtual currency". Full, Bitcoin is a virtual currency that exists only in digital form. He is not set or influenced by government regulation or any financial institution. If so, then the Bitcoin although serves as a means of payment, it does not have a physical form like a sheet of paper money or coins that are in your wallet. But the same functions, as a means of payment. Bitcoin can also be exchanged into currency/conventional.coin and how does it work ?

In his role in the process of buying and selling, Bitcoin can be an alternative that offers a certain amount of ease. Using Bitcoin each party may keep the privacy of data belonging to each payment. Consumers no longer need to inform your personal data and financial data every time you Transact online.

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 **History Of The Bitcoin**

Bitcoin is a translation of a concept called "cryptocurrency" was first coined by Wei Dai in 1998. This concept emphasizes the control system set up penciptaaan and also of this transaction, in which cryptographic algorithms regulate only the owner of the Bitcoin who could use the money, each of the owners of the Bitcoin acted as users while the currency manager, not by the Government or certain institutions.

The currency of the Bitcoin first published by Satoshi Nakamoto in 2009. But a year later he left the project Bitcoin without much revealing who he is. Bitcoin development continues to run but with the advent of new developers in the community, even open source-based application can be downloaded by developers who want to review the back rows of a code in it or create their own version of the Bitcoin applications.

**The Workings Of The Bitcoin**

Bitcoin network using peer-to-peer without centralized storage, which means he can be transferred to any network as long as there is internet. Currencies that are owned by a person will be kept in an application called Bitcoin Wallet. So, you will not receive money in any physical form in addition to the application form in your gadget. This application must be installed on the computer, tablet or smartphone senders and recipients. The next owner of the Bitcoin will get his name Bitcoin Address are useful to accept Bitcoin submissions as an email address. The entire computer connected to a network of Bitcoin will become a regulator at the same time that verifies the transaction data in order to prevent the occurrence of fraud.

**What Are The Advantages Of Bitcoin?**

Bitcoin has several advantages compared to conventional currency, among others

• Without limit, he can be sent in and to anywhere around the world at any time.
• Transfer fees are relatively small even 0.
• The risks are minimal, relatively more secure and does not use personal information that is important or confidential.
• Neutral and transparent, you can even see and verify in real-time the supply and availability of the chain block Bitcoin. As already said before, none of the institutions can set up or cheat with Bitcoin.

**What Is The Weakness Of The Bitcoin?**

In addition to the excess, Bitcoin also had some weaknesses. For example:

• There are still many people who have not received the Bitcoin as means of payment.
• Total circulation and companies/organizations that accept Bitcoin is still relatively small.
• Bitcoin application is still in beta phase so that there are many features that are currently in development and could not be used.

**How to obtain a Bitcoin**

There are two ways of getting Bitcoin legally, first with how to buy from an official exchanger. The second follows the Bitcoin mining. If you want a quick and easy, choose the first method. Because the second way requires advanced computer called Application-Specific Integrated Circuit (ASIC) and the procedure was not easy.

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