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Get to Know Bitcoin, a Digital Currency of Fantastic Value

Get to Know Bitcoin, a Digital Currency of Fantastic Value

This post is also available in: Indonesia

Bitcoin is a digital currency that has been talked about by many people lately. Having a higher exchange rate makes many people more interested and curious with this currency. Reported from Kompas.com, Thursday (10/2/2021), a bitcoin ‘chip’ worth Rp 628,701,386.10 . The data was obtained from Morningstar and Coinbase.

Bitcoin Exchange Rate
Bitcoin Exchange Rate

The digital currency became increasingly popular after Tesla Inc owner Elon Musk expressed his support via his Twitter account.

“I am a supporter of bitcoin,” he wrote as reported by Reuters on Monday (1/2/2021).

Elon Musk said he was a little late to realize the potential of bitcoin, and said he should have bought it eight years earlier. Comments followed by the tag “#bitcoin” on his personal Twitter social media profile, causing the value of the currency to rise by 14%.

Then What is Bitcoin?

Quoted from the BBC, Thursday (11/2/2021), bitcoin is often described as a virtual currency and indeed a completely virtual type of money. Simply put, bitcoin can be said to be the digital version of cash.

Owners can use it as a means of payment to buy a product or service. Its own inventor is Satoshi Nakamoto, who first launched the digital currency on the Internet in 2009. However, his true identity is not yet certain because it turns out that the name is a pseudonym.

Even some people claim to be the owners of that name. So far there have been a number of services that accept this virtual currency as a means of payment, one of which is PayPal. In fact, Tesla Inc. also accepts it as a means of payment for cars. Nowadays, Bitcoin is increasingly valuable because many people are willing to exchange it for goods or cash.

Know How It Works

In fact, each of these currencies is a computer file stored in the ‘digital wallet’ application on both computers and smartphones. The customer can transact by sending the digital currency through a digital wallet.

Then each transaction will be listed on a public list called blockchain. This allows tracking bitcoin history, preventing a person from spending coins they don’t own, making copies, or cancelling transactions. How to get Bitcoin yourself can be done by:

  • Mining using a computer
  • Buy using the original currency
  • Sell goods or services and receive bitcoin as a means of payment

How to Mine Bitcoin?

In fact, this activity is just a simple description of the computer process for obtaining bitcoin. For the system to work, people can order computers to process transactions for everyone.

The computer is set up so that the bus processes super complex calculations. That’s where one can get this digital currency. because the calculations are so complicated, it takes a powerful and supportive computer. This is what is then referred to as ‘mining’.

However, this digital currency has a system that is set up in such a way, so the calculation process to get it is even more difficult. This is done in order to prevent the resulting currency from circulating too much.

See Also: 6 Digital Currencies Besides Bitcoin That Are Suitable for Investment

If someone starts mining right now, it might take years before they finally get a piece of bitcoin. On the other hand, it also costs a lot to pay for electricity and assemble computers to be powerful enough to mine.

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