Hello My Friend.
As a consultant, I am often faced with the question "What exactly is Bitcoin?" To answer this, let's get rid of all the digital concepts that are in Bitcoin. Suppose that Bitcoin is something real like gold, for example, and imagine that you are now holding a lump of gold in your hand. Easy, right?
Now I ask, who created gold? Nothing, God is the creator and we cannot prove His existence or His true identity if it really exists. So far, there hasn't been any individual or company that can create gold.
To get gold, we must first mine it or buy it from the nearest gold shop. This precious metal is spread all over the world, applicable and can be traded in any country, even though it was not created by a real person.
Gold is available in limited quantities, and this is what causes the price to increase from time to time.
Bitcoin is exactly like that, but the difference is, it is digital or invisible. So now imagine that you've conjured the gold into something virtual and stored on your computer or smartphone. Bitcoin has all the important aspects that gold has, but its shape is like a pulse. Amazing, right?
We can summarize that Bitcoin has gold-like characteristics as follows:
- The supply is limited, where there will only be 21 million Bitcoin spread in the world;
- Not created by the Central Bank / government, but by a party whose real identity is unknown;
- Not produced or controlled by an individual, group or company;
- Impossible to be duplicated or forged;
- Are durable and not easily destroyed;
- Obtained by mining, but using mining programs and mathematical algorithms;
- Can be transacted throughout the world;
- Transactions are irreversible, meaning that once Bitcoin is given to another person, the transaction cannot be canceled unless the person is willing to send the Bitcoin back;
- Can be exchanged and traded with various currencies in the world.
The characteristics above prove that besides its digital form, Bitcoin is more or less similar to gold. But you need to know that there are some things that make Bitcoin better than gold.