Definition and How Bitcoin Works

Bitcoin is a new currency or electronic money that was created in 2009 by someone using the pseudonym Satoshi Nakamoto.

Bitcoin is mainly used in transactions on the internet without using intermediaries or not using bank services.

Just like KoinP2P from KoinWorks, bitcoin uses a peer to peer (P2P) system.

However, the system works without a single repository or administrator where the United States Department of the Treasury calls bitcoin a decentralized currency.

Unlike most other currencies, bitcoin is not dependent on one major issuer.

Bitcoin uses a distributed database and spreads to the nodes of a P2P network to a transaction journal.

It also uses cryptography to provide basic security functions, such as ensuring that bitcoins can only be used by those who actually own them, and never more than once.

As a result, bitcoin can be used in various types of transactions such as buying internet servers, buying fashion products and so on.

There are also many people who only trade bitcoin as a profitable investment activity, and many become rich because of it.

This is influenced by the price of bitcoin which reached hundreds of millions of rupiah in 2017.

Unlike money that is usually stored in a bank account, bitcoin is basically stored on a personal computer in a wallet file format, or stored in a wallet provided by a third party.

Ownership does not require an identity, alias can be owned by an anonymous person.