Bitcoin is one of the investment tools that have the maximum profit potential. Bitcoin is the most popular cryptocurrency compared to more than 5,000 other cryptocurrencies currently available. It should be remembered that Bitcoin is a high-risk investment. . The price is very volatile. Investors and traders can suddenly become rich overnight. They can also become poor overnight. It’s a good idea to do thorough research before investing in Bitcoin to identify the risks and your ability to absorb the risks. Don’t rush and be a naive investor. If you are interested in investing in bitcoin, please read the full explanation below to learn more about bitcoin.
What are bitcoins?
Bitcoin is a decentralized digital currency that was created in 2009 by a person under the pseudonym Satoshi Nakamoto. Bitcoin promises low transaction fees compared to traditional online payment mechanisms. This new digital currency belongs to the cryptocurrency category because it uses cryptography to maintain it. . to stay safe. Although known as a currency, bitcoin does not have a physical form. Bitcoins are simply balances stored in a public ledger that anyone can access transparently. This currency is used in transactions on the Internet without going through intermediaries such as banking services. The system used is peer to peer or P2P whose system works without storage and with one administrator. The US Treasury declares bitcoin a decentralized currency
Get to know the Bitcoin working system
As mentioned above, Bitcoin uses a P2P system. Bitcoin uses cryptography to provide basic security such as its use which can only be used by those who own it. If you want to use it, users need to install a Bitcoin wallet on their computer or mobile device. Then it will automatically create the first bitcoin address. Similar to email, users can exchange bitcoin addresses. This bitcoin address can only be used once. This bitcoin property will be stored on a personal computer with a swiftlet or swiftlet file provided by a third party without the need for identity. Bitcoin aliases can be stored with an anonymous identity. There is a public transaction record which is a bitcoin trust network called a blockchain or blockchain. Confirmed bitcoin transactions are stored on the blockchain. Bitcoin wallets store secret data called private keys or seeds which are used to sign transactions that are proof of mathematization. this is for wallet holders. Then in the Bitcoin working system, there is the term Mining. Mining is a system used to confirm transaction queues by entering the blockchain This process will confirm the chronological order of the blockchain, protect net neutrality, and support computers for status approval. Mining is also defined as a competitive lottery environment to prevent people from easily adding successive new blocks to the blockchain.
Ownership of bitcoins can be anonymous so bitcoins are often used as a method of money laundering and other criminal acts by certain entities such as cybersecurity authorities or any government. to generate huge amounts of bitcoin. Bitcoin makes transactions between countries easier and more private because it is not tied to any country by laws or regulations. Transactions that occur in bitcoin will be recorded in a public register therefore anonymous or without the names of the parties involved. This allows for illicit transactions or criminal acts that are difficult to track down by the authorities due to the very low level of anonymity. overtime such as illegal arms trade, narcotics, terrorist financing, and other actions.
How to Buy and Get Bitcoin
Digital money like bitcoins can be stored in digital wallets on cloud servers or on the staff of computer owners. Wallets are similar to virtual bank accounts that allow users to make transactions or investments. Apart from the form of transactions, the most popular way to earn bitcoins is by mining bitcoins. There is even a competition to earn bitcoins using personal computers by solving complex mathematical puzzles. In addition to mining and user-to-user transactions, bitcoins can be earned through trading. Many companies have become market platforms engaged in bitcoin trading. Bank Indonesia prohibits bitcoin as a legal tender because the legal tender in Indonesia is the rupiah. However, the Futures Exchange Supervisory Agency (CoFTRA) includes bitcoin as a commodity. CoFTRA itself has released a list of 229 cryptocurrencies that can be traded in Indonesia, including bitcoin, ethereum, and dogecoin. There are also 13 cryptocurrency traders registered with CoFTRA, including Indodax, Tokocrypto, Zipmex, Pintu, and Luno. Recently, the Indonesian Ulema Council (MUI) issued a fatwa on cryptocurrencies as commodities, but they are excluded for cryptocurrencies that have underlying assets and have clear advantages.