What is Bitcoin?
Many people think that Bitcoin is a very confusing thing, even though Bitcoin is something that can be easily understood.
If asked what bitcoin is (abbreviated as BTC), the simplest explanation is:
Bitcoin is a decentralized global transaction cash system.
Based on the journal written by the inventor (reported in Bitcoin.org), Bitcoin is actually:
A purely peer-to-peer version of electronic cash would allow payments to be sent directly to one party to another without going through a financial institution.
Have you ever wondered how the transaction system (selling, buying, transferring money) happened? Yes, there are always third parties who mediate, for example: banks (bank transfers), Visa, Mastercard, Paypal and so on.
Have you (from Indonesia) ever bought goods on Amazon or Paypal? What do you think about the payment system abroad? For example, if you use a credit card with a Visa logo, how about the payment that can be run?
As we all know, every institution providing financial services (including banks) must have their accounting books. Surely there is time, energy and costs that must be spent to be able to run the transaction. That’s why we (the customers) are charged an additional fee (charge).
Continuing our initial discussion, what is Bitcoin? Bitcoin replaces and changes the cash book system into a global accounting system. Of course the benefits are reducing time and costs.
Who Created Bitcoin?
There are many people who say that Bitcoin was created by someone, even though every major discovery is always made by a group of people (one team).
Bitcoin was discovered by a team or group of people with the name Satoshi Nakamoto.
The Bitcoin system designed by Satoshi is open manner, meaning that the programming code can be seen and checked by everyone in the world.
So, there are no hidden secrets and the creator does not have a conflict of interest.
If you are interested in knowing what a Bitcoin programming language or algorithm looks like, then you can research Satoshi Whitepaper.
The 9-page journal explains the mathematics and algorithms of a Bitcoin. You can download the journal material at Bitcoin.org (documentation).
3 Characteristics of Bitcoin
The author believes, besides wanting to know what Bitcoin is, you still want to know what exactly is its function? Is it safe for Bitcoin transactions? and so forth.
Let’s just discuss the characteristics of Bitcoin.
Characteristics 1: Bitcoin as a Payment System
Characteristics 2: Bitcoin as Digital Gold
One of the oldest investments is gold investment. People (from ancient times to the present) see gold as a high-value object.
Is gold really worth it? Gold itself has no value, gold is only a lump of stone.
Then where is the value of gold? It’s a bit confusing, because everyone agrees gold has a certain value (you can see: today’s gold price to know the latest prices).
Why do people think gold is more valuable than other stones?
The answer is gold has unit characteristics that make it a “store of value”, namely:
The amount of gold in this world is limited and rare. Gold has soft properties and can be melted and formed into small units.
Example: gold coins, precious metals 1 gram and so on. Gold is also stable, not degraded, easily recognizable and hard to fake.
Bitcoin has all the same characteristics as gold, such as:
The number of Bitcoin is limited, that is, there are only 21,000,000 Bitcoins in the world.
Bitcoin can be broken down into smaller units without losing the value of the unit (1 Bitcoin = 100,000,000 Satoshi – the smallest unit of Bitcoin, same as grams in Gold). We can buy less than one Bitcoin.
Bitcoin technology is also stable and will not experience degradation.
Very difficult to make fake Bitcoin, because of the Blockchain system.
You can move Bitcoin anywhere in the world in minutes, regardless of the number of Bitcoin.
That’s why people refer to Bitcoin as digital gold, but digital gold is better. In essence, Bitcoin is like gold – this is why many people refer to Bitcoin as ‘digital gold’ or ‘Gold 2.0’.
Apakah Bitcoin Menjadi Revolusi Mata Uang Digital?
Jadi, jika ditanya, apa itu Bitcoin? Anda dapat membayangkan sebuah wadah (ember) yang didalamnya ada kartu debit (atau kartu kredit), emas dan internet.
Semuanya jadi satu itulah Bitcoin.