The Origin of Bitcoin and its Mysterious Discoverer

Although its usage is getting crowded in Indonesia, but there are still many people who do not understand bitcoin currency. Understandably, bitcoin is a virtual currency and intangible like a sheet of paper or metal like a tool of the transaction in general.

Bitcoin owners can make transactions through various electronic devices such as computers while connected to the internet. The uniqueness of bitcoin lies not only in its use but also in its invention.

How not, until recently, the inventor who was mentioned named Satoshi Nakamoto still a mystery. Some researchers try to uncover the secret behind the name and just find a dead end. Even though he was asked to be a billionaire because of his bitcoin transaction, the owner of Satoshi Nakamoto's name never showed his nose in public.

Like other currencies, bitcoin also has advantages and disadvantages. One advantage is the role of bitcoin as a very small currency exposed to counterfeiting. While the weakness of bitcoin among them is the potential lost documents (his files exposed to virus or hacked) high.

Then how the history of bitcoin discovery until its use is able to spread globally until today? Here's the origin of bitcoin as quoted from the official website Bitcoin, Forex Tickets, The Motherboard Vice, and a number of other sites

Bitcoin, what kind of currency?

Speaking of definitions, in general bitcoin is a virtual currency that allows people to conduct financial transactions directly by using certain electronic devices.

More specifically, bitcoin is not a special currency in a country or bank. The value of its currency is determined solely on the basis of its use and the foreign exchange (forex) market.

Bitcoin issuance is done through free computer code and the amount should not exceed 21 million in order to prevent the emergence of inflation policy. Bitcoin also does not have an operations center such as a bank to hold a record of the transactions performed.

However, account records are still recorded in bitcoin networks randomly on the computer. In addition, bitcoin also uses cryptographic systems for payments between two parties.

Delivery of bitcoin can also be made directly between the seller and the buyer or through a third party such as PayPal. In addition, bitcoin can also be exchanged for conventional currency such as euro, dollar and others. But the exchange can only be done through an internet network like MtGox.

The inventor of Bitcoin remains a mystery

Until now the discussion of the origins and inventors Bitcoin will lead to one name, namely Satoshi Nakamoto. Named but intangible it seems very appropriate to describe the owner of the name Satoshi Nakamoto is still a mystery until now.

There is no record of Nakamoto's identity or his bitcoin creation record. But in his profile on the P2P Foundation website, Nakamoto claims to be a 38-year-old man living in Japan.

This is certainly very strange to see his skills in English and often use the spelling of the United States is very thick in writing. Moreover, bitcoin software is not documented and labeled in Japanese.

In addition, the English format written in his employees shows that Nakamoto is a British man. The researchers believe, Nakamoto is the name of a person or a group and is trying to deceive the public with various disguises.

But the first launch of bitcoin software spreading speculation that its creation could not be done by only one person and is a collaborative effort together. The speculation makes Satoshi Nakamoto allegedly not the name of one person but as a group of people who created bitcoin.

Some researchers try to reveal the true identity of the inventor but always lead to a dead end. Who is Satoshi Nakamoto? His identity is still tightly closed to this day.

The Origin of Bitcoin

Nakamoto claims he has been working on the Bitcoin project since 2007. In 2008, he published a research report titled The Cryptography Mailing List at metzdowd.com. The contents of his report on the description of bitcoin as a digital currency.

One year later, he released bitcoin software and launched his first ever super-sophisticated network and currency unit. With its global deployment in the internat, several new exchange systems also emerged in 2010.

After that, exchange bitcoin files from one computer to another is more likely to be done at a lower price. Meanwhile, the concept of digital currency first appeared in 1999 from Wei Dai known as b-money.

The currency significantly inspires Bitcoin but is accompanied by improved security systems and legitimacy for its users. Nakamoto as a discoverer is known to be very active in modifying bitcoin software and providing technical information on bitcoin forums until his contacts began to be difficult to track in mid-2010.

Until a few months before he disappeared, almost all modifications to the bitcoin code were well resolved by Nakamoto. He began to rarely receive any contribution to anyone. Before he completely disappears, he points to Gavin Andresen as his successor and gives him access to the SourceForge Bitcoin project and a copy of his password.

The advantages of bitcoin use

Like the conventional currency, bitcoin also has advantages and disadvantages in its application. Speaking of excellence, bitcoin is known for its high level of security.

During this time, conventional currency is known to be very vulnerable to counterfeiting. But the application of a cryptographic system applied to bitcoin keeps its owners protected from similar risks. In addition, bitcoin can play a role as a global currency.

Although each country has its own currency, bitcoin remains capable of being present and entering into the financial system of any country. Bitcoin knows no national borders, does not waver due to political conditions in government, and is not affected by anything.

Another greatness is bitcoin can act as a protector of the inflation rate. Bitcoin can also suppress excessive inflation.

In addition, bitcoin is a new form of community savings that is applied with a system that is not troublesome. In addition to saving bitcoin, all the usual financial intermediaries in banks can be eliminated. The holders also do not need to pay service fees and registration.

Weakness of using bitcoin

In the midst of the many advantages of bitcoin, this one digital currency turns out to have some weaknesses that can pose a risk to its use. The first weakness of bitcoin is its unstable currency value. Bitcoin is a speculative currency. While currently not enough companies that offer the purchase and sale of products with bitcoin as a means of payment.

Next, as a virtual currency, bitcoins are stored in the form of digital files or known as wallet files that are very risky hacking action by hackers. Because the wallet file similar to the function of the cash storage wallet.

Wallet files stored on the hard disk of electronic equipment are also very susceptible to damage. In addition, in case of a virus attack on the hard disk, all bitcoins in the wallet file just disappear.

Not to mention the risk of hard disk content of bitcoin owners erased accidentally. More painful than cash, you lose all the contents of the wallet without being traceable to where it disappears. In addition, people with computerized expertise have the potential to steal the money.

The other risks borne by bitcoin owners are those that are not controlled by the government or financial institution authorities. As a result, such conditions provide great opportunities for criminal activities such as money laundering and tax evasion.

Lack of government control also makes bitcoin seem worthless. In addition, some financial observers consider bitcoin as illegal currency because it is not encouraged legislation lawful in the eyes of the law.

Bitcoin currency unit

Like the common currency, bitcoin is also considered necessary to have a special unit in the mention of it. There are many discussions held by bitcoin activists to create units for bitcoin. Until now, the use of bitcoin is used with a limit of 8 decimal units.

A number of names are proposed ranging from 1 bitcoin with 1 BTC symbol. Next is 0.01 BTC which is equivalent to 1 cBTC or 1 centibitcoin. cBTC is also often pronounced as bitcent.

Next is 0.001 BTC which will be called 1 mBTC or 1 millibitcoin. The term is still varied like mbit, millibit or even bitmill. On it there is 0.00001 BTC which is equal to 1 microbitcoin and is known as a ubit or microbit.

Although it has a unit, but its value can never be synchronized with the use of currency exchange rates in conventional currency. While the smallest denominations of bitcoin at once become a very special designation is satoshi. 0,00000001 BTC equal to 1 satoshi whose name is adjusted to the inventor.