Bitcoin Investment? First, Look To The Following Facts and Risks
Bitcoin Investment? First, Look To The Following Facts and Risks-A virtual currency or cryptocurrency that is already traded in various countries, including Indonesia. In fact, This investment is increasingly loved by many people because the price is expected to continue to rise. In order not to take a wrong step, first know the ins and outs of it’s investment.
This is was introduced by Satoshi Nakamoto in January 2009. But actually, it was publish on 2008. That means it’s been around for 10 years. The currency is controlled by open software, then anyone can do development on it without having to own the copyright or ask permission first.
Bitcoin is used for various transactions, such as purchasing services such as games ,shopping and so on. This digital currency is gaining popularity. Many people are crazy about it because its price continues to rise, even though it sometimes drops. According to Coinbase, it is traded at a price range of USD 4,008 or around IDR 58.12 million per coin.
If the price of it rises higher, its value is very tempting overnight. But even if it’s down, it can be drastic. The ups and downs of it prices are one of the risks for it investors. Even though it often drops, This investment is still considered a money mine. Before you dive into mining the benefits of investing in cryptocurrency, first consider the facts and risks of investing in it:
Using a Peer-to-Peer (P2P) System
If you are want to know about who is the intermediary for bitcoin transactions, like banks in conventional transactions, then the answer is no. This type of digital currency is a direct transaction tool, which is why it is called using the Peer-to-Peer system.
Transactions using this one are said very safe. This is because every transaction using this one will be recorded and verified through a network. It is named blockchain.
The inventor of bitcoin, Nakamoto lured people to create other blockchains. Those who create the storage technology will be rewarded with this. Then, the number of it in circulation increased. The process of making blockchain is better known as mining or it mining which means it mining.
The First Transaction: Paying a Pan of Pizza
When it was first launched, only a few people believed in it After Nakamoto mined his first it (known as the genesis block), this network was officially operational. The first person to download the this application was Hal Finney, a computer scientist who was also a cypherpunk (a term for people who fought for cryptography). Then, He got 10 pieces of it from Nakamoto.
However, Nakamoto disappeared after successfully mining a lot of this one, estimated at one million pieces in 2010. In the same year, a commercial transaction using bitcoin took place first. Computer scientist Laszlo Hanyecz buys two pizza pans from Papa John’s Pizza shop for 10,000.
When multiplied by the current of this exchange rate, Laszlo bought the two pizza pans for IDR 810 billion. That is happen because the price of it has increased. When it’s first launched, the exchange rate of this against the rupiah was around IDR 451 per chip.
Ever Used for Illegal Online Transactions
Initially, bitcoin was used as the primary payment method for the SilkRoad website, a portal-like trading forum for all illegal goods and services. To access the site, you need a browser called TOR Browser.
SilkRoad allows you to get any illegal goods and services, from firearms, narcotics or illegal drugs, child porn videos, to hit men services. The aim is detected by the authorities, sellers and buyers use this one as the main medium of exchange or means of payment because it uses a peer-to-peer system.
The founder Satoshi Nakamoto is a mysterious figure
Even though the bitcoin application was first registered by Nakamoto, he is a mysterious figure. Until now, not a single person knows who Satoshi Nakamoto is. In a forum on the internet, he once mentioned that he was from Japan.
There are information about Bitcoin. May this article is useful.