Bitcoin Case
BITCOIN DEFINITION
Bitcoin is a virtual and decentralized currency that used a peer to peer technology to facilitate instant payment. It is the other alternative of payment been called as crypto currencywhich used cryptography as security which means bitcoin users no longer have to split regulation, high fees or limits in their transaction. Moreover, without involving any central authority or clearance house, all the transaction are confirm with all the network itself, so bitcoin will never can be frozen.
Bitcoins are created through a “mining” process where there is a computer that scattered all over the internet that involves complex number to be solved. This process currently creates 25 Bitcoins every 10 minutes and thehe limit of 21 million is expected to be reached in the year 2140.
It doesn’t matter where the place or how much the earning if a person, some can easily participate in this financial system either using laptops or smartphones anytime they want.
Besides, the bitcoin user also can change amount of bitcoin they’ve own to the currency suchas dollars or euro. The biggest exchange is Mt. Gox an acronym of Magic: The Gathering Online Exchange, based in Tokyo, Japan.
The rate of the bitcoin is determined by the supply and demand of the bitcoin itself. Therefore the fluctuations and risk are determined solely by the market forces.
THE TRANSACTION.
To send a bitcoin the users must have;
The bitcoin address
The private key.
To get a bitcoin address, one just simply signup in the internet with bitcoin software and the address will be randomly created and are simply sequences of letters and numbers. The private key is another sequence of letters and numbers, but unlike your bitcoin address, this is kept secret.
For example, Ayu want to send 3 bitcoin to Borhan, then she will log in to her bitcoin wallet, put the Borhan’sbitcoin address and also the amout of 3 bitcoin the she wished to transfer. From there bitcoin’s miners will verify it and turn it into a transaction into the wider network of bitcoin. Once Borhan notified the success transaction, he can take out his bitcoin using the private key that been kept secret to himself.
Since the transaction must be verified by miners, users are sometimes has to wait until they have finished mining. It’s usually takes roughly 10 minutes to mine for each block.
Sometimes, there’s transactions fees which been calculated using various factors. Some wallets let the users to set its transaction fees manually. Any portion of a transaction that isn’t picked up by the recipient or returned as change is considered a fee. This then goes to the miner lucky enough to solve