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What is Bitcoin BTC?

 
what is Bitcoin BTC ?

This complete guide to learning Bitcoin will cover what Bitcoin is, why it is valuable, how to own it, and everything you need to know about this most popular cryptocurrency.

What is Bitcoin?

Bitcoin is a digital currency, virtual currency or crypto asset. Simply put, Bitcoin is money that we cannot touch directly like Fiat. Because Bitcoin works on a network that uses complex algorithms.

When was Bitcoin Introduced?

Bitcoin was introduced in 2009 in a whitepaper or a document published by a programmer under the pseudonym Satoshi Nakamoto.

Here's the Bitcoin Whitepaper

In that document Bitcoin is defined as a peer-to-peer electronic payment system.

That is, Bitcoin works on a sophisticated network that no government or agency can control to control the distribution and issuance of Bitcoin.

The number of Bitcoin has also been set at only 21 million, neither more nor less. So, the amount will be very rare and more expensive if all the Bitcoins have been successfully issued and distributed.

So, are you ready to own Bitcoin before the numbers get too limited?

How is Bitcoin different from traditional currency (Fiat)?

There are several basic things that distinguish cryptocurrencies from traditional or fiat currencies that can also be traded digitally. Here it is the difference.

1. Decentralization

The most important characteristic is that it is decentralized. This means that no company, institution or government controls the Bitcoin network.

2. Limited supply

Unlike fiat currencies which can be continuously issued by the country's central bank, Bitcoin has a total supply of 21 million which is completely controlled by the underlying algorithm.

This number is still, will not decrease or increase, if the 21 million has been obtained, there will be no more Bitcoin.

3. Pseudonymity

The Bitcoin system, which has no central control, makes us users semi-anonymous. That is, our real identity will not be known, and we use another identity.

If we want to send or transfer, the system only checks whether we have Bitcoin to send and does not check our identity. So that transactions that occur in the system are pseudonymous.

4. Eternity

Transactions for Bitcoin and other crypto assets are irreversible, unlike electronic fiat transactions. So, before making a transaction, make sure everything is correct so that it arrives at the right address.

5. Can be shared

The smallest unit of Bitcoin is called a satoshi. This is one hundred millionth of BTC (0.00000001) - at today's Bitcoin price, around one hundredth of a cent. This could allow for micro-transactions that cannot be done with traditional electronic money.

So if your funds are not enough to buy 1 BTC, you can buy 0.1, 0.001, 0.0001 BTC and so on which can still be used for transactions

Why Use Bitcoin?

Bitcoin was originally created as a decentralized alternative payment method. In some parts of the world, this cryptocurrency is still a more efficient and cheaper way to transfer money across borders, and some money transfer startups take advantage of this feature.

People feel more comfortable holding a portion of their wealth in Bitcoin which is stored securely, which a central authority cannot block access or bypass.

Recently this most expensive crypto asset has also taken on the role of an investment asset, as traders, institutional investors, and small savers have become aware of the potential profits from its price increase. Bitcoin that continues to circulate is increasing its usability level for users.
Save Cost and Time

Transaction fees with Bitcoin are much cheaper than credit cards. By using Bitcoin the time for transactions only takes 10 minutes, while Credit Cards can be up to 10 days.
Ownership and Management Control

The importance of Bitcoin is also because you are in control and manage your own account according to your wishes. So you don't need to be afraid of cheating or technical mistakes.

In addition, you can store Bitcoin in an online / offline wallet, which you can manage as you wish. Luckily again, there is no interest every month and no government / company will interfere with your Bitcoin.

Privacy

You don't need to provide redundant information. Which means preventing fraud or identity theft. For example, someone uses your identity for illegal transactions. The information you need to provide is only your Bitcoin wallet address and is not your real identity.

Your address is very unlikely to be hacked / traced by other people because your address is a very, very long letter and number.

Bitcoin vs Blockchain

Many ordinary people misunderstand Bitcoin and Blockchain.

What is Blockchain? Are Bitcoin and Blockchain the same thing?

In short, Blockchain is the technology behind this first cryptocurrency. The BTC system is an implementation of a technology we call Blockchain technology.

Blockchain is a technology in the form of a digital book (ledger) that records all transaction history that occurs on a Bitcoin network.

The transaction records are encrypted in a cryptography consisting of a series of 16 numbers and letters and then added by themselves to the transaction history.

Blockchain is used as a system for recording crypto asset transactions. Technically, the Blockchain system uses a block as a list of records and history, the block contains data that is formed into a hash. Transaction records in the form of blockchain can be accessed by everyone on the same network, thus providing transparency for all who use the Blockchain.

Bitcoin is built on top of the blockchain system, and it can be said that it is the first blockchain application built so that this first cryptocurrency is often referred to as the first version of Blockchain or Blockchain 1.0.

That's an explanation of Bitcoin, from this article you are given information on what Bitcoin is, it's different from traditional currencies

Yulina Firmansyah
Yulina Firmansyah Hi, I am a wife who really loves crypto and blockchain technology, I am a writer for this blog.

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