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Causes of the Bitcoin Revolution

 Causes of the Bitcoin Revolution

Bitcoin is the name of the best and most popular cryptocurrency (Cryptocurrency) today, just like Euro for countries in Europe.

But unlike the Euro and US Dollar which come in the form of paper money/coins, Bitcoin is digital (without physical form) and decentralized (not tied to third parties, e.g. banks).

It only exists in the digital world and comes in the form of computer code.

What is Cryptocurrency?

In a simple sense, Cryptocurrency can be interpreted as Cryptocurrency. But it can also be defined as a medium of exchange for Bitcoin.

It is the same as paper or coins for fiat currency (Euro/USD).

Crypto itself has significance as data encryption (encrypted data).

Ensure that cryptocurrency transactions remain secure by specially encoding the data they contain.

Just like Bitcoin, cryptocurrency also has no physical form.

What is Blockchain?

Blockchain is the name of the technology that supports the existence of cryptocurrencies and their types such as Bitcoin.

Blockchain is a platform for mining cryptocurrencies through a very large computer network.

Knowing these three things can be very confusing.

Few people are confused about how cryptocurrencies work and how these three things have become so popular over the past 5 years.

For example, Bitcoin, in addition to appearing and circulating since 2009, but its true identity or creator is still unknown until now.

The information known only to Bitcoin was developed by the pseudonym Satoshi Nakamoto.

Satoshi Nakamoto's basis is just trying to find a solution to the potential flaws that exist in the digital banking industry, namely Double Spending.

Definition of double spend in crypto

Double-spending is a potential weakness that occurs in digital money systems, where the same unique digital token can be used more than once.

Like physical money, this double spending can be likened to the use of counterfeit money,

where spending risks causing inflation because it creates and increases the money supply.

With the inclusion of Bitcoin, it is believed to solve the problem of double spending.

Because it is decentralized or has no third party intervention.

Bitcoin is regulated by a community of users/owners. This community records all transaction history data at once.

Any action aimed at manipulating the Bitcoin community will be immediately tracked and any payment made in it will be automatically rejected.

No user, government, bank or credit card company has control over the flow of Bitcoin

Problems around the world of bitcoin and cryptocurrency

Although decentralized and almost considered a suitable replacement for vacuum in the banking world.

But as said before, bitcoin is not perfect and has its own problems.

Bitcoin is known to be very volatile in value and is volatile (Can go up/down in a short time).

For example, the price of Bitcoin on April 14, 2021 is worth around 64,000 USD/png.

But less than a week after that, on April 23 to be exact, Bitcoin price suddenly fell to around US$50,000.

The reason for this is other than Bitcoin adhering to the Demand & Supply system. Or we can say that the price is determined based on the existing stock in the market.

If the market demand is high and the stock is low, the price will rise. If the market demand is low but the stock is large, the price will fall.

Fluctuations are only the first problem, while the second problem that increasingly follows Bitcoin is the problem of security in digital wallets (Wallets).

Digital wallet (wallet) where Bitcoin is stored. Photo:

Bitcoin or other types of cryptocurrency that are in digital wallets because we know the data is stored on smartphones or computers.

Thus, the data will be very vulnerable to hacking or exposed to other types of cybercrimes.

The cause of the famous cryptocurrency

Not just Bitcoin, in today's digital world there are more than 4000 types of cryptocurrencies (Cryptocurrencies) spread all over the world.

Each of these cryptocurrencies has its own ups and downs, just like Bitcoin.

For example, Ripple, Ethereum, Litecoin, Gridcoin, Binance Coin and many more.

Not to mention thanks to the rise of Dogecoin due to tweets from Elon Musk, the founder of Tesla and Space X.

Doing crypto carrying the Shiba Inu breed has skyrocketed and making crypto even more popular.

Although popular, not all countries in the world agree on the use of Bitcoin. There are those who agree, such as the United Kingdom which created its own cryptocurrency, namely Britcoin.

And there are those who reject it like America raising the asset tax for owners of digital assets.

In short, playing in the crypto world is like playing the game. Where investors must be prepared to win big or lose badly