What Is Bitcoin?

What is Bitcoin? Bitcoin is an electronic payment instrument there are many kinds, no paypal, Payza, money, money, money bokers, etc. But there is one means of payment that is quite unique because it is made by a cryptographic system connected to the Internet, which is bitcoin. This is a future a money in the world.

Bitcoin is the first implementation of the concept of currency crypto (crypto-currency), which controls, issuance of money and transactions governed by Cryptography. Cryptography is the study of mathematical techniques related to aspects of the security or confidentiality of information.

Cryptographic techniques are used to guarantee transaction processing and record keeping goes according to the rules and safe. Cryptography is also used as a means of regulating the supply and demand of this bitcoin currency values​​. It can be said the entire financial process governed by mathematical algorithms in cryptography technique automatically, so it is not necessary supervision and control center for this currency.

Without the need for central control, the so-called currency bitcoin is decentralized, which means there is not a person, entity or country that acts as a controller of the currency. This is since the beginning of the design by its creator to avoid political influence and monopoly banks.

In addition to the decentralized nature, the currency of the transaction is also done without intermediaries, so that the receiver and the sender (seller and buyer) can transact directly without any third party where the two parties are, as long as both are connected via the internet.

Due to the nature without intermediaries and this decentralized, then the owner of the currency does not have to have an account like a bank account, nor will be registered on the website, server or certain institutions, so that the currency of this guarantee the secrecy of the owner of the money and transaction itself.

Money in the form of proprietary information specific code can be stored in a variety of media, whether it be a file on the local computer, mobile phones, flash, or in other media. Proprietary information is referred to as a wallet (purse).

Everyone can have an unlimited number of wallet without incurring the cost of making, Internet connection or registration process. In this wallet contained an encrypted code to get historical data transactions from the Internet, by reading data, the owners can find out how much money is stored in its wallet.

Each wallet has a name or address called bitcoin-address or sufficiently address. by using this address one can do Bitcoin transactions like sending or receiving sms / email. This address is a row of letters along the 34 alpha-numeric characters, for example: 2bHtdiHtXgd1CMS7jhZW8AdWXA6WnBAfw

There is a wide range of website services (one mtgox.com) that provide currency exchange services traditionally (such as the US $ and other currencies) to Bitcoin, so through this website users can buy or sell according to the bitcoin Bitcoin exchange rate at that time.