A Brief History Of Bitcoin - And Where It's Going Next

Bitcoin is an electronic money made in 2009 by Satoshi Nakamoto. The name is also associated with open source software he designed, and also use the peer-to-peer or centralized storage without a single administrator where the United States Treasury Department calls the bitcoin a currency that is decentralized. Unlike currencies in General, bitcoin is independent with trust the Publisher. Bitcoin using a distributed database and spread to the nodes of a P2P network to the journal transaction, and use the Cryptography function to provide basic security functions, such as ensuring that bitcoin-bitcoin can only be spent by people having it, and never can be done more than once.

The design of the Bitcoin allows for ownership without an identity (anonymous) and the transfer of wealth. Bitcoin-bitcoin can be stored on a personal computer in a format file or stored by the wallet a wallet service to third parties, and in spite of all that Bitcoin-bitcoin can be send via the internet to anyone who has a Bitcoin address. Topology of peer-to-peer bitcoin and lack of a single administration makes it impossible for any Government, authority, to manipulate the value of bitcoin-bitcoin or cause inflation by producing more bitcoin.

Bitcoin is one of the first implementations of the so called cryptocurrency, was first described in by Wei Dai in 1998 in the presence of the cypherpunks mailing list early Bitcoin also marked by 50 Bitcoin world's first produced through the system, which was later known as "Genesis Block". Uniquely its own mine Nakamoto "Genesis Block", on January 3, 2009.

Bitcoin is not the shape of coins, paper money, silver, let alone gold. He is not seen in real terms. He was just a digital currency. Nakamoto is known as the creator of the Bitcoin. The currency is fully controlled by software. Every ten minutes or so, Bitcoin will be distributed at those who do "mining". Initially, Bitcoin is popular amongst the cryptographers, to those who engaged in the research of cipher (Cryptography). Not surprisingly, cryptography is the Foundation of the Bitcoin place standing. In the beginning, Nakamoto also active in the community of cryptographers. He was reportedly quite diligent in replying to postings in various forums of Cryptography.

Nakamoto had voiced loud enough, when Wikileaks wants to utilize the Bitcoin to receive donations. At that time, it plans to protest the Nakamoto. Bitcoin thinks not ready for that much attention. "These projects need grow slowly so that its devices could be reinforced while the road. I filed on Wikileaks, please do not use the bitcoin. Bitcoin is a beta community was still a toddler. You're not going to get (a donation via bitcoin) more than loose change course, but the impact that you take it can destroy us, "wrote Nakamoto on December 5, 2010. But over time, digital currencies belonging to Nakamoto that's more convenient for digital transactions. Its popularity slowly uphill up to attract wider attention. The value of Bitcoin increased. When first launched, a Bitcoin is only worth less than one u.s. dollar. But in mid-December 2013, a Bitcoin been 710 u.s. dollars.

Where Nakamoto ? Founder of Bitcoin

Behind the success story of this digital currencies, Nakamoto turns selecting leave Bitcoin. On December 12, 2010, approximately seven days after delivering his opinion to Wikileaks, Nakamoto renders the last message on the forum. Of course, when that nobody thought of it so the last postings Nakamoto. She is still pretty routine, though increasingly rare, replying to emails pop Bitcoin. At that time, the direction of development of the Bitcoin held by Gavin Andresen. The developer of this one was initially famous for the site of Bitcoin Faucet (spigot bitcoin) aimed at giving away 10,000 free bitcoin. Andresen became the only who can still communicate via email by Satoshi Nakamoto. On April 26, 2011, to convey the message of the Andresen founder.

"This morning my suggested that Satoshi, and we (the community of bitcoin), must begin not to exaggerate the problem of the existence of the mysterious ' founder ' when talking to the public about bitcoin," wrote Andresen. In April 2011, to his colleagues, Nakamoto ever send a message that he "had moved work on other things". Since that time, the name of the Nakamoto disappeared and was not detected. Efforts to reach him conducted by the actuator Bitcoin not reaping the results. Briefly emerging speculation that Satoshi is actually a leading Cryptography researcher. Name a few ever had "nominated" as the man's true identity, but none who admitted.

Anyone ever mentions, that Satoshi Nakamoto was merely a pseudonym taken from the name of the technology companies Samsung, Toshiba, Motorola and Nakamichi. Allegedly, due to his United Kingdom Language very well, Satoshi isn't even coming from Japan. In fact, he called instead of just one person. One of the theories is a pretty widely accepted is that Satoshi Nakamoto actually represents a team. Bitcoin has called the draft a very good so it seems unlikely made by one person only.

Who is Satoshi Nakamoto actually? Apparently, it was so unnecessary questions have hounded the answer. The more important thing is seeing the results of his work, and how it can impact on today's society. Recognized or not, Bitcoin Fever ravaged the world. Cryptocurrency that is decentralized and not regulated or guaranteed by authority of this lively centre used for transacting in different countries, including Indonesia. Even though it has a number of advantages compared to "conventional" currency, instead of the Bitcoin has no risk. There are some threats that lurk the users of virtual money. One of them relates to the question of the storage of the Bitcoin.

To be able to spend your Bitcoin, owners need a specific line of code called the "private key". This line of code is stored in a "wallet" or digital wallet. When it will be used, then the owner of the code and use it for transactions. The private key can be stored locally on the computer or printed with the printer. The question arises because this line of code could be stolen or lost. If that's the case, then all of the Bitcoin associated with the corresponding private key will be vanished forever from the hands of the owner. Cases like this are a few happen in the last few months. For example, events that befall Inputs.io. The online wallet providers last November the hackers exploited resulting in the "customer" to lose 1.2 million worth of Bitcoin us dollars.

Private key that is stored in "Cold Storage" (computer or storage media that is not connected to the internet) also have their own special vulnerabilities. A man named James Howells store 7,500 Bitcoin in wallet inside his computer hard disk. When the hard disk is missing, Howells was forced to answer millions of dollars worth of virtual money. To reduce that risk, CEO of Bitcoin Indonesia Oscar Darmawan little share tips. The Manager of one of Indonesia's largest Bitcoin exchanges revealed that he raise a Bitcoin wallet in the form of a print-out printed. "Then, in order to be secure, we store the prints in a safety deposit box," said Oscar when found after gathering Indonesia Bitcoin Community in Jakarta, Saturday (18/1/2014) yesterday. To protect your online wallet, a strong password can be used. It can also be added to two-factor authentication service Google kind of Authenticator that are often offered by web based wallet. Backup wallet also needed to be guarded against the possibility of a problematic server or computer/hard disk is damaged.

History of the Bitcoin Bitcoin is an electronic money made in 2009 by Satoshi Nakamoto. The name is also associated with open source software he designed, and also use the peer-to-peer or centralized storage without a single administrator where the United States Treasury Department calls the bitcoin a currency that is decentralized. Unlike currencies in General, bitcoin is independent with trust the Publisher. Bitcoin using a distributed database and spread to the nodes of a P2P network to the journal transaction, and use the Cryptography function to provide basic security functions, such as ensuring that bitcoin-bitcoin can only be spent by people having it, and never can be done more than once. The design of the Bitcoin allows for ownership without an identity (anonymous) and the transfer of wealth. Bitcoin-bitcoin can be stored on a personal computer in a format file or stored by the wallet a wallet service to third parties, and in spite of all that Bitcoin-bitcoin can be send via the internet to anyone who has a Bitcoin address. Topology of peer-to-peer bitcoin and lack of a single administration makes it impossible for any Government, authority, to manipulate the value of bitcoin-bitcoin or cause inflation by producing more bitcoin.

Financial Risk of Bitcoin

Other risks associated Bitcoin is the value of the currency itself famous is very volatile. In early January 2013, for example, Bitcoin appreciated 13 us dollars per chip (1 BTC). That number skyrocketed to more than 1,100 us dollars per chip in December of the same year, and trousers trimmed to only half (about 500 us dollars), just a few hours after banning transactions Bitcoin in China. This makes Indigo