The Bitcoin is a digital currency, or electronic cash, that relies on peer-to-peer technology for transactions. By using peer-to-peer technology as the primary network, bitcoin provides a community similar to the managed economy. That is, bitcoin eliminates centralized management of money and promotes community management of money. Most of the software that mines and manages Bitcoin digital cash is also open source.

The first bitcoin software was developed by Satoshi Nakamoto, based on an open source cryptographic protocol. The smallest bitcoin unit is called Satoshi, which is basically one millionth (0.00000001 BTC) of a bitcoin.

One cannot underestimate the boundaries that Bitcoin removes in the digital economy. Bitcoin, for example, removes administrative control over money from a central authority and provides control and management to the entire community. In addition, the fact that bitcoin is based on an open source cryptographic protocol makes it an open field in which there are strict activities such as value fluctuations, deflation and inflation. Bitcoin is becoming more popular than ever at a time when many Internet users are realizing the privacy of transactions they complete online. But for those who understand the dark Web and how it works, there are people who already use it.

On the downside, Bitcoin is also very secure for anonymous payments, which could pose a threat to security or personal health. For example, the dark web market is a major supplier and retailer of imported drugs and even weapons. The use of Bitcoin on the dark Web contributes to this criminal activity. Still, if used properly, bitcoin has many benefits, eliminating some of the economic fallacies that come with centralized currency agency management. In addition, Bitcoin allows the exchange of cash anywhere in the world. The use of Bitcoin can also reduce counterfeiting, printing or devaluing of money. At the same time, relying on peer-to-peer network as the backbone network to promote the distributed rights of transaction records, the transaction is more secure.

Other advantages of Bitcoin include:

  • In the world of online commerce, bitcoin promotes the security and complete control of money. That’s because buyers are protected from the fact that merchants might want to charge extra for a lower-cost service. Buyers can also choose not to share personal information after the transaction. In addition, by hiding personal information, you also protect your identity from theft.
  • Bitcoin is an alternative to major common currency disasters, such as loss, freezing or damage. However, it is always recommended to back up bitcoin and encrypt it with a password.
  • Bitcoin charges little or no fees for online purchases and payments. This improves the affordability of use.
  • Unlike other electronic currencies, merchants also face less risk of fraud because bitcoin transactions cannot be reversed. Even at times of high crime and fraud, bitcoin is useful because it is difficult to deal with someone on the open public ledger (blockchain).
  • The bitcoin currency is also hard to manipulate because it is open source and the cryptographic protocol is extremely secure.
  • Transactions can also be verified and approved anytime, anywhere. That’s the level of flexibility digital money offers.

Also read – Bitkey: Linux distribution dedicated to Bitcoin transactions

How to mine bitcoin and complete the necessary bitcoin management tasks of the application

Among digital currencies, bitcoin mining and management requires additional software. There are many open source bitcoin management software that make it easy to make payments, receive payments, encrypt and back up bitcoin, as well as many bitcoin mining software. Some sites, such as Freebitcoin, which earns free bitcoins by viewing ads, MoonBitcoin is another site where you can sign up for free and receive bitcoins. However, it comes in handy if you have free time and a sizable network to participate. There are many bitcoin mining sites that make it easy to sign up and start mining. One of the main secrets is to bring in as many people as possible to build a large network.

Applications needed to work with bitcoin include a Bitcoin wallet, which allows people to hold bitcoin safely. It’s like using a physical wallet to hold hard currency, in this case in digital form. Wallets can be downloaded here – Bitcoin-Wallet. Other similar applications include blockchain, similar to a Bitcoin wallet.

The screenshot below shows Freebitco and MoonBitco, respectively.

There are many ways to get bitcoin. Some of these include the use of bitcoin mining machines, bitcoin purchases on exchange markets and free online bitcoin mining. Bitcoins can be bought on MtGox, bitNZ, Bitstamp, BTC-E, VertEx, and more, all of which offer open source applications. These applications include: Bitminter, 5OMiner, BFG Miner, and more. These applications use some graphics card and processor capabilities to generate bitcoins. The efficiency of mining bitcoin on a PC depends largely on the type of graphics card and the processor of the mining equipment. (Personal mining is almost pointless these days.) There are also plenty of secure online stores for backing up Bitcoins. These sites offer bitcoin storage services for free. Examples of bitcoin management sites include: Xapo, BlockChain, and more. Registering on these sites requires a valid email and phone number to verify. Xapo provides additional security through the phone application, requiring request validation whenever a new login is made.

Disadvantages of Bitcoin

The numerous advantages of using the bitcoin digital currency cannot be ignored. But because bitcoin is still in its infancy, it has hit several resistance points. For example, most people are not fully aware of the Bitcoin digital currency and how it works. Lack of awareness can be alleviated through education and the creation of awareness. Bitcoin users also face volatility, as demand for bitcoin outstrips the amount of currency available. But over a longer period of time, when a lot of people start using Bitcoin, volatility will be lower.

Improved point

Based on the start of bitcoin technology, there is still room for change to make it more secure and reliable. Given the longer term, the bitcoin currency will grow enough to offer the flexibility of a regular currency. In order for bitcoin to succeed, more people need to know about bitcoin, in addition to giving information about how it works and its benefits.

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