What is a Bitcoin

What are Bitcoins? Bitcoin is a new currency or electronic money that was created in 2009 by someone using the pseudonym Satoshi Nakamoto.

What is a Bitcoin
What is a Bitcoin

What are Bitcoins? Check out the Complete Explanation About Bitcoin! – In recent years, the name bitcoin has been increasingly heard as an instrument in the financial world that is said to be able to generate a lot of profit.

Many people end up enthusiastic about transacting and investing  in one of these types of cryptocurrencies .

The benefits are so tempting because the increase in valuation from time to time is so extraordinary.

In Indonesia, there is already a large user base, and several companies have been established specifically to become bitcoin buying and selling (transaction) platforms.

Bitcoin is often considered as a potential new investment instrument in maximizing profits.

At this point, you may already be interested in knowing more about what bitcoin is, how bitcoin works.

Is it true that bitcoin can bring a lot of profit?

How do bitcoins work?

Come on, see a more complete explanation below!

1. Definition and How Bitcoin Works

Bitcoin is a new currency or electronic money that was created in 2009 by someone using the pseudonym Satoshi Nakamoto.

Bitcoin is mainly used in transactions on the internet without using intermediaries, alias not using bank services.

Just like KoinP2P from KoinWorks, bitcoin uses a peer to peer (P2P) system.

It's just that the system works without a single repository or administrator where the United States Department of Finance calls bitcoin a decentralized currency.

Unlike other currencies in general, bitcoin is not dependent on one major issuer.

Bitcoin uses a distributed database and spreads to the nodes of a P2P network to the transaction journal.

It also uses cryptography to provide basic security functions, such as ensuring that bitcoins can only be used by those who have them, and never more than once.

As a result, bitcoin can be used in various types of transactions such as buying internet servers, buying fashion products and so on.

There are also many people who only trade bitcoin as a profitable investment activity, and many have become very rich because of it.

This was influenced by the price of bitcoin which reached hundreds of millions of rupiah in 2017.

Unlike money that is usually stored in a bank account, bitcoin is basically stored on a personal computer in a file wallet format , or stored in a wallet provided by a third party.

Ownership does not require identity, alias can be owned by someone anonymously.

Also Read: How to Start Trading Bitcoin and Other Cryptocurrencies

2. The Bitcoin Security Dilemma and User Anonymity

Because ownership can be anonymous, bitcoin is often used as a method of money laundering and various other criminal acts.

Bitcoins can also be transferred via the internet to anyone with a bitcoin wallet address.

Bitcoin's P2P topology and lack of a single administration make it extremely difficult to manipulate by either a specific entity, be it a cybersecurity authority or any government.

Thus, the price of bitcoin ( Bitcoin to I DR ) is difficult to be affected by inflation because it is difficult to produce bitcoins in very large quantities.

Also with bitcoin, transactions between countries become very easy and private because bitcoin itself is not bound by any country, law or regulation.

Please be aware that every bitcoin transaction is recorded in public records but the names involved are never recorded and are always anonymous.

On the one hand, because it allows illegal transactions to occur, it is very difficult for the authorities to trace who is involved in various criminal acts.

These criminal acts, for example, are financing terrorism, buying weapons, narcotics, and so on because of the extraordinary level of anonymity.

3. How to Get Bitcoins?

Electronic money such as bitcoin can be stored in a digital wallet on a cloud server or on the owner's personal computer.

The wallet in question is more like a virtual bank account that allows users to send and receive bitcoins, invest or transact.

Apart from being in the form of transactions, how do you get bitcoins?

The most popular thing that people often do is to 'mine' bitcoins.

People even compete with each other to mine bitcoins using their computers by solving very complex math puzzles.

That's how bitcoin was created.

Currently, the winner who successfully completes the math puzzle is rewarded with 12.5 bitcoins (or the equivalent of Rp. 1.4 billion) every 10 minutes.

It's amazing, isn't it?

Because it's so tempting, many websites out there, such as websites that provide torrents/download software or free movies, in general, even insert viruses in the form of JavaScript and are automatically installed on visitors' computers.

Then the virus will 'mine' bitcoins on the visitor's computer, causing the computer to slow down and start to overheat easily.

Apart from 'mining' and transactions between users, another way to get bitcoins which is now very popular is through trading.

Many companies become marketplace platforms specifically engaged in bitcoin trading.

Bitcoin is now being traded following the prevailing exchange rate.

Only 1 bitcoin, the valuation can be equivalent to IDR 115 million more. Crazy!

Also Read: 10 Cryptocurrency Investment Coin Recommendations

4. What then is the connection between Bitcoin and KoinWorks?

In the early stages of KoinWorks' emergence among the public as a pioneer of P2P Lending in Indonesia, many people mistakenly associated it with bitcoin because of the word 'KOIN' in KoinWorks .

As a result, many people think that KoinWorks is the place to invest in bitcoin.

In fact, KoinWorks itself was originally a company that provided a P2P Lending platform that brought together borrowers and lenders in an online platform that could be accessed anytime and anywhere.

However, since late 2019, KoinWorks has transformed into a Super Financial App , which provides not only funding products, but also digital gold investment and business loans.

The products range from KoinP2P and KoinRobo as funding products.

There is also KoinGold , where users make digital gold buying and selling transactions .

Then, KoinBond is an easy solution for buying Government Securities (SBN) investments from the Indonesian government online.

Until, there is also KoinBisnis , which provides business capital loans of up to IDR 2 billion.

5. If so, can dibKoinWorks transactions use Bitcoin?

The short answer, no .

The full answer, the monetary authority forbids.

The ban by Bank Indonesia (BI) is intended for technology-based financial service providers ( KoinWorks is one of them) including e-commerce not to accept bitcoin.

Virtual currency processing is also prohibited.

According to the Head of the Communication Department of Bank Indonesia, Agusman Zainal, "In the context of the payment system, bitcoin is not a legal tender."

He added, this matter had actually been regulated in the Bank Indonesia Regulation concerning the Implementation of Payment Transaction Processing in 2016.

Even so, you don't have to worry about profits.

P2P Lending at KoinWorks has promising interest, you know!

6. Legality of Using Bitcoin and Other Cryptocurrencies in Indonesia

On January 23, 2018, as quoted by TribunNews , the government announced a strict ban on the use of virtual currency ( cryptocurrency ) including bitcoin as a means of transaction and payment in Indonesia.

Governor of Bank Indonesia Agus Martowardojo warned the public not to trade or buy bitcoins, because there is no regulatory body that supervises bitcoins.

So it is vulnerable to pose a risk to society.

The use of bitcoin, said Agus, is also close to the possibility of money laundering and terrorism financing.
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