Appearing for the first time in 2009, bitcoin still exists today. Even though the exchange rate fluctuates and is difficult to predict, the price tends to increase from year to year. Lastly the value of bitcoins skyrocketed, beating the value of gold. The WannaCry global cyberattack has caused quite a stir. In no time, news of this ransomware attack went viral. People who are accustomed to using computers are worried that the WannaCry virus will infect their computers. All files from the computer affected by the WannaCry attack are either automatically locked or digitally encrypted. To open it, the victim must deposit US $ 300 in the account of the hacker who spread WannaCry. However, it is not really the dollar in the form that is being asked for, but in the form of bitcoin.
The name bitcoin also became a concern for this incident. The remaining questions from the WannaCry case remain. Actually, what is bitcoin? Here is the explanation.
Bitcoin: A Digital Currency Free of Bank and State Bonds
Its use is universal, free from bank and state regulations. Bitcoin offers easy transactions for its users. Founded in 2009 by the name Satoshi Nakamoto, bitcoin is one of the digital currencies (cryptocurrencies) that anyone can use without revealing their real identity (anonymously) and without needing control from an authority such as a central bank. This is the reason why hackers spreading WannaCry want bitcoin.
Unlike currencies in general, whose issuance and circulation are regulated by central banks and countries, bitcoin is obtained by solving mathematical (algorithmic) or computational numbers. By using special hardware and software, bitcoins are obtained in the process of mining or mining (replacing the term computing). The flexibility that exists in bitcoin by giving up full control to the user does not mean that the user is also free to make changes. There needs to be a mutual agreement between users so that the use of bitcoin remains as it should be. With an agreement or consensus among all users, bitcoin will and will continue to do well. Because it is digitally present and transacted online, it does not mean that bitcoin has no exchange value. Bitcoin can be exchanged into currencies that have been commonly used by the public. The exchange is hosted on the Bitcoin exchange website. Opened at a price of US $ 84.1 in 2013, the last exchange rate of bitcoin against the dollar has touched the figure of US $ 2,216.20.
Noted a number of merchants have received payments in bitcoin. Several confirmed names include PayPal, Microsoft, Dell, Newegg, Overstock.com, Expedia, TigerDirect, Dish Network, Zynga, Time Inc, PrivateFly, Virgin Galactic, Dynamite Enterntainment, Clearly Canadian, and Sacramento Kings.
Bitcoin Pros and Cons Apart from the concept as an alternative means of payment and shifting conventional transactions, bitcoin, besides having advantages, also has disadvantages.
How does Bank Indonesia (BI) respond to Bitcoin?
Bank Indonesia (BI) as the central bank in Indonesia gave a statement regarding the bitcoin phenomenon. The statement was made on 6 February 2014 with reference to Law no. 7 of 2011. It states that bitcoin and other virtual currencies are not legal currencies or payment instruments in Indonesia. BI also urges the public to be careful when using bitcoin and other virtual currencies. Apart from Indonesia, a number of countries have also reacted to the bitcoin phenomenon. Malaysia and Thailand prohibit the use of bitcoin as a legal means of payment. Meanwhile, Singapore allows the use of bitcoin as long as users pay taxes when exchanged for currencies, products or services. In China bitcoin is not recognized as a legal currency.
Understand Bitcoin Carefully Before Buying It The efficiency and flexibility that bitcoin offers is indeed very attractive.
Across regions and apart from banking and state regulations, make bitcoin an alternative choice in transactions. However, the shortcomings of bitcoin should not be ignored. The exchange rate is unstable and the software is still in beta, so things to watch out for. Therefore, consider carefully before using bitcoin.