Know Bitcoin in form Virtual or Digital Money

Know Bitcoin in form Virtual or Digital Money

Know bitcoin in the form of virtual or digital money. Bitcoin first appeared in 2009 by the user name Satoshi Nakamoto and still exists to this day. Has a fluctuating exchange rate and tends to increase from year to year. Its use is universal, free of bank and state rules. Its use without the need to disclose the original identity (anonymous) and without the need for control of the authority of a kind of central bank.

Bitcoin can be mining

Bitcoin is obtained by solving algorithms or computations. By using special hardware and software, bitcoin is obtained through mining or mining processes. In order for each bitcoin transaction to continue to be recorded, bitcoin network needs a computer that keeps on fire. Because it is difficult to expect the computer owner to turn on his computer without special incentives. Then bitcoin network will automatically generate 75 coins of bitcoin per hour. Which will be contested by every computer joined in the network.

Digital money or cryptocurrency bitcoin uses a blockchain system and can be redeemed into other currencies. Redemption through Bitcoin exchange website. Opened at US $ 84.1 in 2013, the last bitcoin exchange rate against the dollar has touched US $ 11,320.

The advantages of using Bitcoin:

  1. Transactions across regions and continents without being bound by banking and state rules.
  2. Transaction costs are low.
  3. Relatively safe and efficient. The consensus minimizes risk.
  4. Transparent as all bitcoin related information is visible to all users.
  5. No need to provide a personal identity.

Lack of Bitcoin use:

  1. Its use as a means of payment is still minimal.
  2. The exchange rate is up and down. Affected number of bitcoin in circulation, number of users, and so on.
  3. Bitcoin software is not final.
  4. Can be used to perform money laundering.
  5. Vulnerable lost due to human error.

Bank Indonesia as the central bank in Indonesia gave its statement on February 6, 2014 with reference to Law no. 7 of 2011. Its content stated that bitcoin and other virtual currency is not a valid currency or payment instrument in Indonesia. BI also urged the public to be careful. Some other countries do not recognize bitcoin and prohibit its use. Singapore allows the use of bitcoins from which users pay their taxes.

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