Know What Bitcoin Is: A New Virtual Currency

Maybe many of us still don’t understand Bitcoin. Buying and selling transactions on the Internet lately have indeed grown so rapidly. Not only in the transaction process that is increasingly diverse, now also has appeared a new virtual currency called BitCoin. Maybe some of you do not know or even just heard the name first. For information about BitCoin as a new virtual currency, you can click this link.

But since its introduction in 2009, this unique currency has actually been used by several e-commerce players in the world. More complete is the following review of whether and how the role of BitCoin is an online transaction tool.

BitCoin is a virtual currency (cryptocurrencies) that can be used for online transactions. When asked what the form of this currency is, what is clear is its form not like the physical currency issued by a bank and not the currency of a country. BitCoin is obtained by solving mathematical numbers (algorithms) or computing. By using special hardware and software, BitCoins are obtained in the mining process. The shape of this unique currency is only a file in general.

The file is an encryption of unique codes that make it not the same as each other. And like mp3 or word files that you have on your computer, BitCoin files can also be stored on a computer or a flash disk or software called BitCoin Digital Wallet. In addition, BitCoin can also be saved in BitCoin storage services on the Internet in the form of a social cloud.

According to several sources, the history of the birth of BitCoin began in 2007. A computer expert tried to develop a new model of a virtual currency system that was not bound by any party or authority. That person is named Satoshi Nakamoto. The Japanese man claimed to develop BitCoin for 2 years and began to release it in the internet world in 2009 and finally spread to this day.

But there are some experts who claim that the inventor is a fictitious name and there is no real person with that name. There are some experts who claim that BitCoin currencies are something made by a person or group of people who really want to make new perceptions in the world of online transactions and the main purpose, of course, is to take advantage.

Bitcoin distribution

If asked how the value and distribution of Bitcoin coins. Regarding its current distribution BitCoin has spread almost all over the world. However, there are some countries that have firmly refused the use of the BitCoin currency as an online transaction tool.

These countries include China and Singapore, the country does reject the use of Bitcoin as a legitimate buying and selling tool because of its insecure nature. In addition, BitCoin is also feared to have a negative impact on the stability of online transactions in the country.

Regarding the value of BitCoin, if it is exchanged with US value, some parties claim that the value of 1 BitCoin or 1B (BitCoin symbol) is currently worth $ 195 dollars. However, this value will continue to change in accordance with the number of BitCoins currently available. Until now it is estimated that there is already 21 million Bitcoin which has increased by 25 Bitcoin per minute worldwide.

Pros and Cons of Bitcoin

The advantages of BitCoin as a payment tool are simple and concise. BitCoin is a person-to-person transaction tool and only the person holding it can use it. In addition to the use of the car, we do not need to include personal information such as the bank currency or other online transaction accounts. This certainly provides information security from the owner.

The disadvantage of using Bitcoin is because the form is only a file, allowing BitCoin to be damaged/ lost/deleted if something happens with the device where we store the BitCoin. And the biggest weakness is because BitCoin is a transaction tool that is present because there are a willingness and trust from its users. This allows one time Bitcoin can really be worthless because no one wants to use the currency.