Understanding the Presence of Bitcoin Interested by the Community

Definition Bitcoin (BTC) itself is a digital currency that is distributed electronically with a decentralized peer to peer network. This currency was first created in 2009 by Satoshi Nakamoto who is the pseudonym of the inventor of bitcoin. Bitcoin itself cannot be printed and is limited and can only be made as many as 21 million bitcoins.

Since this currency is increasingly being discussed, more and more people want to know and get this currency, because its exchange rate is very high and can continue to increase. Based on data obtained by DailySocial.id through Morningstar and Coinbase, Thursday (22/4), one bitcoin is equivalent to Rp.784,902,683.10. Of course this value can continue to increase every day.

One of the factors that make the bitcoin exchange rate continue to increase is the limitations of the bitcoin. There is an event called bitcoin halving, this event occurs every 4 years, where 210 thousand blocks are reduced each time halving day. So, every halving happens will affect the price of existing bitcoin. Bitcoin halving this has happened 3 times, most recently in May 2020.

For earn bitcoin, one can do several ways, such as, buy bitcoin using real money, sell goods and accept payments with bitcoin, and the last one can be done with mining bitcoin with a computer. However, for now, if ordinary people want to own bitcoins, they can only buy and will not be able to mine.

How Bitcoin Works

The working process of bitcoin itself is supported by open source code known as 'blockchain' which is chained to 'code' to create a permanent record of every transaction that occurs. Blockchain technology is at the heart of the more than 2.200 cryptocurrencies that follow after bitcoin. Each bitcoin chip is a computer file that is stored in a digital wallet or digital wallet smartphone. A bitcoin wallet contains a public key and a private key that work together to allow the owner to digitally initiate and sign transactions and provide proof of authorization.

Bitcoin owners can make transfers anytime and anywhere via a bitcoin digital wallet. In addition, the transaction does not contain personal information such as names or credit card numbers which eliminates the risk of consumer information being stolen for fraudulent purchases or identity theft. However, keep in mind also, if you want to buy bitcoin through an exchange, the buyer must first include a bank account.

Although in Indonesia bitcoin currency cannot be used as a valid transactionHowever, the Commodity Futures Trading Regulatory Agency (CoFTRA) has confirmed that it will issue regulations on the use of crypto assets as investment products. This regulation aims to encourage sustainable trading of crypto assets and is also based on good principles and governance.

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Disclosure: This article was written by Srikandy Indah Karina