Bitcoin is a electronic money were made in the year 2009 by Satoshi Nakamoto. The name is also associated with software open source that he designed, and also uses peer-to-peer that connects all. Unlike the currency in general, bitcoin does not depend on the trust major publisher. Bitcoin uses a distributed database and spread to the nodes of a network P2P to the transaction journal, and usecryptography to provide basic security functions, such as ensuring that bitcoin-bitcoin can only be spent by the person possesses, and never can be done more than once.
Design of Bitcoin allows for anonymous ownership (anonymous) and the transfer of wealth. Bitcoin – bitcoin can be stored on a personal computer in a format file wallet or stored by a servis wallet third party, and in spite of all the Bitcoin – bitcoin can be sent via the Internet to anyone who has a Bitcoin address. Topology of the peer-to-peer bitcoin and lack of a single administration makes it impossible for authorities, any government, to manipulate the value of bitcoin – bitcoin or cause inflation by producing more bitcoin.
What are the advantages of using Bitcoin?
- Freedom of Payment – Allows you to send and receive money instantly anywhere, anytime. No bank holiday. There is no limit state. There are no restrictions imposed. Bitcoin gives users full control over their money.
- The cost is very low – Bitcoin payments currently processed at no cost or at a very low cost. Users can enter into a transaction fee to obtain priority processing, so that it gets faster transaction confirmation by the network. In addition, processor sellers there to assist the seller in the transaction processing, change currency bitcoin into conventional fiat, and put money directly into the seller's bank account every day. Because all of these services based Bitcoin, the cost required is much lower than credit card or PayPal network.
- Low risk for the seller – Bitcoin transactions are very safe, can not be canceled, and do not contain any personal or sensitive information from customers. This protects the seller from losses due to fraud or fraudulent chargeback, and do not need adjustment PCI. Sellers can easily expand into new markets where credit cards are not available and the level of fraud is very high. The end result of Bitcoin is a lower cost, broader market, and administrative expenses less,
- Security and control – Bitcoin Users have full control over their transactions; not possible for the seller to make unwanted bill or note as can happen with other payment methods. Bitcoin payment to be made without including personal identintas to process payment. This provides strong protection from identity thieves. Bitcoin Users can also protect their money with backup and encryption.
- Transparent and neutral – All information Bitcoin related to the supply of money available in the chain-block for anyone who wants to verify or to use it in real time. No individual or organization can control or manipulate the Bitcoin protocol for highly secure cryptographic. This allows the core to be completely neutral Bitcoin, transparent, and predictable.
What are disadvantages of using Bitcoin?
- The level of acceptance – Many people are still not aware of the existence of Bitcoin. Every day, more and more businesses that accept bitcoin because they wanted to benefit from the use bitcoin, but still just a list of users is still small and need to grow to benefit from network effects.
- Volatility – The total value of of bitcoin outstanding and the number of businesses that use Bitcoin is still very small compared to the appropriate. Therefore, small occasions, trading, or business activity can significantly affect the price of bitcoin. In theory, This volatility will decrease as the market and technological development of Bitcoin. Previously there was never created their own currency, so it is very difficult (and interesting) to imagine the development of what will happen next.
- Ongoing development – Bitcoin software is still in beta with many features that are still incomplete actively developed. Devices, features, and new services are being developed to make Bitcoin more secure and easily accessible to the public. Some of this development is still not ready for everyone. Most businesses Bitcoin is still relatively new and has not offered insurance. In general, Bitcoin is still in the process of maturation.