Want to Know What is Bitcoin? The advantages and risks need to be considered!

Game fans who often buy and sell items or games are certainly no stranger to bitcoin. Currently the use of Bitcoin is increasingly prevalent and makes the price experience a sharp increase, which is around 4,008 or 58.12 million rupiah per coin. Before using it, know what bitcoin is, its advantages and risks.

Knowing what Bitcoin is, its advantages and risks

For beginners, residents of cyberspace who want to do business in cyberspace, they must know the popularity of bitcoin. But it is likely that some of them have some knowledge of the transaction system. Of course there will be questions about what bitcoin is, its benefits and risks.
Bitcoin is a virtual currency which is now quite popular for transactions around the world. Payment systems with bitcoin can generally be done virtually. Because the bitcoin circulation system is controlled through open system software.
Everyone can take advantage of bitcoin for transactions and even invest for profit without the hassle of asking for permission. Cryptocurrency or bitcoin results are very promising, especially if you are good at it. Big profits can be made overnight only when the price increases.

Advantages and Risks

The promising results and benefits have reaped the interest of most of the virtual world users. Besides being easy to do business with, investing using bitcoin has competition that can be overcome easily. Once you know what bitcoin is, its advantages and risks also need to be studied (quoted from the Duwitmu.com blog).

1. Advantages of Investing in Bitcoin

Ease of Peer to Peer or P2P System

A business or investment with bitcoin is considered a safe and easily controllable system. All bitcoin transaction history will be recorded in detail and verified via the network. The cryptographic system in it is recorded in a large data vault that is owned by the public.
This sophisticated technology uses a peer to peer system because it is carried out by direct transactions. A storage technique is commonly referred to as blockchain. Everyone has their data and transaction history safely.

Massive Flowing Profits

The first person to take advantage of bitcoin was Hal Finney who was a computer scientist. Bitcoin purchases are made by exchanging 10 pieces given by Nakamoto. Even with these bitcoins some people can exchange them for one pizza pan. The exchange price is around 10 thousand coins per pizza. Meanwhile, when bitcoin first appeared in Indonesia, you could exchange it for 451 rupiah for one piece. The exchange system can generate massive profits when the exchange rate increases.

2. Risks of Investing in Bitcoin

Including Illegal Transactions

Bitcoin transactions or investments are actually very popular throughout the world, including Indonesia. However, you need to know that this is still classified as an illegal activity.
Official government institutions in the financial sector such as BI or OJK do not give official permission that bitcoin can be used as a medium of exchange. Because this is considered to violate the rules in accordance with Law no. 7 of 2011.

The Potential Can Trigger an Economic Bubble

An economic bubble or economic bubble can occur when the price of bitcoin increases and its function as a means of exchange is increasingly unbalanced. This event is a phenomenon of the destruction of the price of goods due to a drastic increase in accordance with the exchange rate of bitcoin.