At first glance, Bitcoin may sound confusing, but here are 10 surprising facts about Bitcoin that will really explain what layman terms Bitcoin actually is.
The Shocking Facts About Bitcoin
1. No Single Entity Controls This Currency
Confusing? Yes, most people think so too. Differences Bitcoin and the common currency (such as Rupiah and Dollar) exist in the entity that controls them. For example, the Rupiah is controlled by Bank Indonesia (BI).
Therefore, BI will implement policies to prevent inflation or changes in prices or significant Rupiah value. Conversely, Bitcoin is not controlled by any entity.
That is the reason why Bitcoin prices are more volatile than other currencies is that there is no single entity that controls the price of Bitcoin. Bitcoin prices are determined by everyone who has Bitcoin. If you have Bitcoin right now, you're one of those people who determines the price of Bitcoin.
2. The amount of Bitcoin is also Limited
Since it is a virtual currency, you might think that the amount of Bitcoin is unlimited.However it will devalue the currency and make it worthless.
In contrast, there are only 21 million Bitcoins available in the world. This amount has been converted in the form of programming codes and the latest Bitcoin is expected to be 'mined' around 2140.
The limited amount of Bitcoin is intended to keep the value of the currency. That way, Bitcoin is like a limited amount of gold around the world. The limitation of gold makes the value of gold always valuable, and Bitcoin is equal to Bitcoin in that respect.
3. You Can See All Transactions
The unique thing about Bitcoin is completely transparent. All transactions that once took place as well as a person's balance can be accessed by anyone. However, of course not including your personal data.
The name of the Bitcoin account owner can be raised or not. Only transactions and amounts are recorded and monitored by the public.
4. You Can Mining Bitcoin Also Lho
To get Bitcoin, there are several ways. One of them is by mining or mining.
Bitcoin is produced by solving a mathematical problem involving a series of complex algorithmic calculations on a computer. Bitcoin miners then get some Bitcoin if it solves the problem.
5. Bitcoin Technology System is Really Safe
Many people are still doubting the Bitcoin system that is open source . But BitCoin uses a system called BlockChain (chain block), where the system is not centered and interconnected with each other.
The longer, the algorithm will be more difficult. Currently, the BitCoin block chain is so long that it is very difficult to penetrate.
6. Highly Risk Missing or Stolen
As a virtual currency, Bitcoin is stored in the form of digital files or known as wallet files. In use, the wallet file is similar to the cash register function.
But the wallet files stored on the hard disk of your electronic equipment are very vulnerable to damage and viruses attack your hard drive can also make Bitcoin stored away just like that.
The digital wallet can also be hacked and stolen through malware. Not to mention the risk of the contents of hard disk owner Bitcoin erased accidentally. In addition, people with computerized expertise have the potential to steal the money.
7. Exceptional Growth But I'm Precious
The exchange rate of bitcoin digital currencies does continue to rise in a
short time interval.Some time ago exchange rate of 1 bitcoin reached US $
4,135 or about Rp55, 1 million.
Increase in bitcoin exchange rate may be caused by a number of things. One of them is the increasing level of confidence in the digital currency.
But it must be remembered also, Bitcoin born because of the willingness and trust of its users. This allows a time when Bitcoin is really worthless because it does not want to be used again or a new form of digital currency emerges.