How does Bitcoin work?

You can already be a billionaire with only a few million rupiah, perhaps a trillionaire if you invest funds up to tens of millions of dollars in a short span of time that is 5 years!

Funny thing is, many people in the United States especially gained tremendous luck from the skyrocketing value of Bitcoin. Bitcoin is a topic that is being hangat-hangatnya in the world lately because of its drastic increase in value only in a short period of time.

Seeing such seductive conditions many people are wondering, should it invest in Bitcoin too? Is it too late to get into Bitcoin investment? Is profit earned can be as good as the profit that someone else has already got?

Before the question was answered, it helps us understand what Bitcoin is and how Bitcoin works.
 Judging back to back on the history of human civilization – gold, silver, and various other metals have been used as "currencies", but the use of gold became the most popular among other metals.

Gold was used as a tool of exchange until the year 1971, probably for that reason also why the existence of Bitcoin emerged lately.

Try to remember, we've used paper money as a means of exchanging for hundreds of years but a bit different first because the paper money is backed up by gold – that is, every use of $1 banknotes symbolizes the amount of gold in the bank.

So, instead of having to carry around the bag that contains the hard-earned gold wherever it goes then people used to easily carry the paper money and get the gold in the bank whenever they need.

In other words, you can't easily print money like what is now government in every country doing, unless you have enough gold guarantees in a bank.

From that condition the problem arises. Shortly after the end of World War 2, the United States dollar became an international currency because the United States had 70% of the total gold in the world! Thus the United States can print more money than any other country.

Unfortunately, the United States scored more money than the amount of gold they had so that when other countries wanted to redeem their dollars with gold – the United States could no longer fulfill the demand. That's what happened in the year 1971.

Since then, our money is good in any country that is just a banknote without the real value inherent in it. People who have the power can score as much money as they want! As a result, prices are soaring annually.

Not to stop there, the world economy was destroyed in 2008. Actually in that year Indonesia does not have a big impact thanks to Ibu Sri Muliyani who became the Minister of Finance in the era of President SBY. Unlike the economy of European countries that shut down for a while – Indonesia was hit by the worst economic crisis only in 1998.

How do the countries affected by the crisis save their country's economy then? Governments from various countries are printing more and more money.

The United States specifically prints new money with a value of $4 trillion dollars! Well, that's the fundamental issue of the paper money we have today – it can be easily printed by people who have power.

A man named Satoshi Nakamoto came up with a decentralized new currency idea that could be controlled by anyone while in a dedicated network.

They are not part of any government and they are not able to print their money. This currency has a limited amount just like gold and is given the name Bitcoin.

So how does Bitcoin work? Bitcoin works with a technology called blockchain, quite complicated in fact to understand but here's the explanation.

Everything on the Internet is a duplicate of the original data, until here we must agree first. For example, this paper is a duplicate of the original file that I wrote on my laptop and I can duplicate this post as much as I want.

Similar things also happen on the Internet – articles, pictures, songs, and so on. So it's impossible to create a digital currency because everyone can easily duplicate it. Well, that's where blockchain technology is.

Anyone who is on a blockchain technology network can clearly see the Bitcoin shifting from one person to another. In fact, you can easily see the Bitcoin shift record when you are already joining the network.

If someone wants to try to do corruption on this system, everyone who joins the network will soon know it and stop it. In other words, it is almost impossible to get cheating on this system.

All new transactions are collected in a block and each new block is created every 10 minutes once and all of these blocks are connected from one block to another, which is why this technology is given a blockchain name.

However, no matter how sophisticated this technology can still be hacked? Not also the hell. Each new block regardless of the new existing transaction record also stores the old transaction records on the network. In order for the system to read a block, this system must match all the blocks that were ever created on the network.

In fact, not only is the current block and block that must match but also with a new block that will be created in 10 minutes later and another new block in the future.

The more important thing is that each block and every transaction must have a sophisticated cryptography (code). Well, if the new block added does not match the block that has been created and blocks that will be created in the future then cryptography that is in each block will be changed-which makes it easier to recognize the existence of cheating on the system.

The condition that makes the system on Bitcoin almost impossible to get hacked is not because nobody understands how to contrast but more to the computer power needed to hack this system must be larger than the entire network available – meaning the users of this network must be millions of people! The larger the system network the safer the system.

So, if you want to send money then you don't have to go to a bank or 3rd party, you just have to do it with fingertips for free! If you need to send money overseas, you don't have to wait for days so that the bank can make money transfers.

The time it takes to transfer money with Bitcoin is only 10 minutes while waiting for the new block to be created! The question is should you invest in Bitcoin? The answer can yes can not hehe.

It can be, because digital money seems to be the future of exchange. The thing is, Bitcoin isn't the only cryptocurrency. There are still other cryptocurrencies such as Ethereum, Litecoin, and so on. Bitcoin, however, is a cryptocurrency that grows very rapidly compared to others.

The rapid growth was also a problem, in January 2017 the value of Bitcoin has grown from $850 to $19,000 until December 2017. We must admit, everything that develops so rapidly in the end will surely be destroyed in a short time!

If you want to invest in Bitcoin you have to do a deeper research into this digital currency.

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