What is Bitcoin?
Many people think that Bitcoin is a very confusing thing, but Bitcoin is something that is simple to understand.
If asked what is bitcoin (abbreviated BTC), then the simplest explanation is:
Bitcoin is a decentralized global transaction cash system.
actually Bitcoin is:A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.
Who Invented Bitcoin?
There are many people who say that Bitcoin is created by someone, but every great discovery is always done by a group of people (one team).
Bitcoin is discovered by a team or group of people by the name of Satoshi Nakamoto.
Bitcoin system designed by Satoshi is open manner, meaning that programming code can be seen and checked by everyone in the world.
So, there are no hidden secrets and the creator has no conflict of interest
Characteristics of Bitcoin
The author believes, in addition to want to know what is Bitcoin, you still want to know actually what does it do? Is it safe to deal with Bitcoin? and so forth.
Let's just discuss the characteristics of Bitcoin.
Characteristic 1: Bitcoin as the Payment System
Have you ever imagined how the payment system takes place?
Thousands of years ago, when humans still do not know the currency, they trade using a barter system.
Example they exchange rice with corn and others partially.
After humans know the currency (currency), then people trade using cash.
Just like me and you are doing the trading process with cash payment system, debit or credit card.
The question is how to move money online?
Admittedly the existing system is quite complicated, because banks and credit card services using the system ledger system (cash system).
The cash system shows the history (account history) and shows who (the person) is buying what (currency) and what (the amount).
Example:
When Budi made an online money transfer to Anton, the bank that would run the money transfer from Budi to Anton. Can the transfer process be done alone? Do you mean if Budi can act as a bank?
Budi certainly can not act as a bank. Budi must use bank facilities (eg ATM machines, internet banking, sms banking, mobile banking, etc.) to conduct their own transfer process.
Why can not?
Because feared there is risk of cheating. The bank ensures the process is secure, meaning it can not be copied, can not be pasted and can not be sent to two different people.
Behind the scenes, all the online payment process is the transfer of data numbers from one bank to another bank.
Is there a possibility of unscrupulous banks or third parties who do naughty? Always exist, therefore the bank performs the risk management process. We as bank customers, must believe that the bank we use honestly and not cheating.
The transfer process in one bank is an easy thing to do, because its cash system is the same and is in one big system. Problems arise if inter-bank transfer (either in the country or transfer abroad).
Thanks...