What is Bitcoin?

The popularity of Bitcoin increases significantly since the price reached its highest rate in the history in 2017 when 1 Bitcoin worth almost $20,000. In the simplest sentence, Bitcoin is a kind of digital currency or as known as a cryptocurrency. Since the establishment of Bitcoin, there are so many cryptocurrency exchanges that come up with their Initial Coin Offering (ICO), that have the similar concept to Bitcoin.

Bitcoin is a digital currency that is not backed by any country’s central bank or government. Yes, Bitcoin has the same function just like your physical currency which allowed the owner to send or receive money across the internet, even to someone that you don’t know, or even to someone that you don’t trust. The security of Bitcoin is based on Cryptography mathematical field. Its whole process was done digitally that makes it a decentralized currency which doesn’t even need to be passed through any payment gateway and banks! 

Who Started Bitcoin?

This could be the mysterious part of all since up until today, the developer of Bitcoin that hid under pseudonym Satoshi Nakamoto is still a mystery. The person with the pseudonym or could be a group of the developer have also become the first to devised blockchain database. The intention to build a digital currency that is immune typical currency was steadily built in 2009 and digitally controlled by software.  

Decentralization nature of Bitcoin

Since Bitcoin enabled transaction without passing through any country’s central bank make it a decentralized digital currency. This is the most important feature of Bitcoin and what makes it so popular among those people who want to access their money freely without the control from government or banks. Compared to a physical currency that is centralized, Bitcoin is a complete opposite digital currency and.

Basically, Bank will charge you for service charged and even for their services of keeping your savings, with Bitcoin these are solved by a technology called as “Blockchain” which solved “double-spending problem” or in another word, the ability to spend your money more than twice! Even the There are no centralized management or control, but you still your traditional bank and currency to buy Bitcoin anyways.  

Supply is limited to Bitcoin

Although you might get all hyped up about Bitcoin, bear in mind that this digital currency is limited in terms of the supply. Unlike the physical cash in your wallet, the centralized banks could issue as many notes they wanted to with a minimum amount of product compared to its profit rate. Once mined Bitcoin reached 21 million, no more Bitcoin can be owned unless the protocol changed which increase the number of Bitcoin to be mined. The limited supply seems to be the cause of the prices to continue increasing due parallel move of demand grows and the supply.

Anonymity in bitcoin

The developer of Bitcoin itself was a complete anonymous that hid behind a pseudonym, and the bitcoin owner is also operating in semi-anonymity. It allowed the user to use without the real identity to the Bitcoin itself, unlike typical currency which the owner must indicate their identity for verification purposes and anti-money laundering precautions. Unless the Bitcoin owner chooses to link their name to their bitcoin address and the Bitcoin processes don’t need to know the receiver or the sender’s identity, but an address will be adequate. But most authorities demanded identity checks for traders from exchanges to easily traced bitcoin transaction and to avoid money laundering issues. 

No reversed-transaction

In Bitcoin, any transaction made couldn’t be reversed, unlike traditional banks transaction which enabled the process to be immutable. The decentralized nature of Bitcoin makes it impossible to modify due to cryptography process that couldn’t be replaced or reversed. The use of Blockchain technology that runs Bitcoin is different compared to any databases system which can be edited or be deleted.