Bitcoin is a virtual currency symbolized with BTC and only can be used in cyberspace. Launched in 2009 by Satoshi Nakamoto, it is classified as cryptocurrency. It means that this currency can’t be monitored by certain bank and doesn’t licensed by government in any country. It only flow with internet network. It is formed in internet transparent and decentralized internet network. Which means that all developers in the world can verified it works. All of its transaction and creation can be monitored real-time by every internet users. The transaction method can be done by anonym sender, and receiver will be informed sender’s account number and the transfer amount only. In fact, other than it, there are some cryptocurrency in example Peercoin, Litecoin, and etc. However, BTC is the most popular cryptocurrency and it is often used as transaction in cyberspace by most of internet users.
This virtual currency is valuable because it’s global system protected by cryptographic algorithms, which also used in online banking transaction. No organization or individual can control BTC and manipulate the network for personal gain, although not all users can be trusted and hacking can happen. Its creation is democratic, and requires the approval of the majority users before it can be printed in larger quantities than the predetermined amount.
This virtual currency have been widely used by internet users, because there are many online and physical companies have received BTC in its transaction. One of famous leading game, Zynga and no-profit websites like Wikipedia and Wikileaks have known used this virtual currency. Some of forex trading company also have accepted BTC for deposit and withdrawal investment. Therefore, the use of BTS have grown day by day, and makes it value raise consecutive in the future. In fact, in the current market situation, BTS status is very fluctuate, caused by fewer BTC user rather than BTC trader. Simply saying, Bitcoin is often used only for forex trading investment. On the contrary, not many internet users used BTC as currency tools for purchasing items and daily needs from online shop. The reason is because not many online shop allow BTC usage for transaction.
How to Obtain Bitcoin?
- By Exchanging Real Currency with BTC
There are many websites which offers BTC exchange, like coindesk.com, coinbase.com, and so on. 1 BTC equals with $4,600. That value can change periodically, similar with currency market flow. Sometimes the value can goes up, and sometimes it also can goes down based on BTC users. You might think that 1 BTC equals with $4,600 is quite expensive. Even so, BTC usage can be in fraction, like 0.1 BTC or even 0.001 BTC.
- By BTC Mining
Basically, any internet users can mine BTC by themselves, as long as they have adequate “tools.” The main device is the advanced ASIC (Application-Specific Integrated Circuit) computer and / or other equally powerful devices. For your information, not any computer or laptop can be used for BTC mining. You need to make sure that your computer device is equipped with the newest software, and have big space to run BTC mining device. Device users will be able to help BTC transactions worldwide. In the process of creatingit, device users validate transactions through complicated mathematical formulas. In return for such assistance, they will get a certain amount of BTC from the system.
After obtaining Bitcoin, then you need to know how to use it. Just like ordinary money, to be able to use it, first you must have “Wallet” as the storage place as well as the source of your identity in the transaction or namely as BTC Address. It is similar to email or ordinary address, where your personal information is stored. Just like in mobile banking system, you will also have account number, which will appear during transaction. Just like aforementioned explanation, during transaction, you can send BTC to other users with anonymous, but your account number will appear instead. Furthermore, wallet can be obtained from a stock exchange or a specialized BTC Wallet service provider. The form of this wallet is virtual, and can be used anywhere just by logging into the Wallet account. After having wallet, you must fill out the wallet with some alternatives way. First, you can buy BTC from other internet users who have owned it. Then, you need to transfer certain conversed amount in dollars. Second option, you can sell items and received payment with BTC, instead of Paypal. In some of internet sources said that you can gain BTC for free. In fact, some of those ways are fake, and you still need to be charged to obtain BTC. Subsequently, if you have succeed in obtaining BTC, then you can use it as trading tools or purchasing items online.
Bitcoin Advantages and Disadvantages
The first advantage of having BTC is that it is very safe to use and can’t be faked. It is because this virtual currency have cryptograph rule which have applied to creator and prevents from the forgery risk. Another advantage is that BTC can be used as global currency. In current condition, if you want to purchase item from international online shop, you need to change your balance into certain currency. In case you have BTC, you don’t need to exchange its currency again. Even so, in the common situation, not many online shop websites have allowed transaction using this virtual account. Another advantage, this virtual account said able to protect from overflowing inflation. Just like aforementioned explanation, BTC value can still drop or grow, but it will not happen in excess amount.
Even with all those advantages, Bitcoin still lacks in some aspects. First, the value flow doesn’t always stable. It is because this virtual currency is very speculative, especially, users or forex traders can’t predict when BTC users will increase and when it will stop. Another disadvantages is that it is risk to be lost or stolen by hackers. This virtual account can be likely to be money laundering tools.
After all of those explanations, you can decide whether to have Bitcoin as transaction tools in cyberspace or not. In United States, this virtual currency have been widely used for investment assets and is charged for it tax. Even so, it doesn’t implied in other countries, like Russia. Russian government forbids all transaction using all kind of virtual currency. Even so, in some countries, the government still unable to decide whether BTC usage is legal or not. By all means, if you want to use BTC, you need to calculate all the risks and take it by yourself.