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Bitcoin

작성자HANBAT HERALD  조회수4,936 등록일2023-02-20
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Bitcoin

By Kim Myeong-gyu Reporter, Junior of Chemical and Biological Engineering

Due to the future value of virtual assets and the expectations of return on investment, more and more investors are investing in virtual currencies, rather than stocks. News related to virtual assets is regularly pouring out, whether it is good or bad. Recently,  there was even a day when the daily transaction amount of exchange exceeded the total transaction amount of the Korean stock market. It seems that Bitcoin is now at the center of the virtual asset market.

ŸWhat is Bitcoin?

Bitcoin, which is based on blockchain technology, is a virtual currency, and the first cryptocurrency that, in a digital environment, does not have a physical form of exchange with a real currency, such as bills or coins.

ŸWhy do we Pay Attention to Bitcoin?

We pay attention because of blockchain technology. Blockchain is a distributed data storage technology that stores data, connects it in a chain form, and replicates it on numerous computers. For example, when 10 people are participating in a network, transaction details (data) that occur when users A and B make a transaction, are transmitted and stored to all the users  participating in the network.

So, how does bitcoin differ from the existing monetary methods? Previously, banks or governments played a safe intermediate role between transactions. However, with blockchain technology, the currencies are separated and stored by individual people, rather than by banks. Since individuals online play an intermediate role, there is no longer any need for central administrators, such as banks.

 

ŸCharacteristics and Benefits of Bitcoin

ŸPortability

Bitcoin is a digital currency, so you can conveniently carry it on a drive (a portable storage device on a computer) and store it online.

ŸAccessibility

It provides a service that allows you to transfer money and make payments, wherever the internet is available.

ŸTransparency and Security

On the blockchain, anyone can check all transaction details and related information in real time. Therefore, neither individuals nor institutions can control or manipulate data.

ŸNon-counterfeiting

Counterfeiting is impossible, due to the various defense mechanisms inherent in blockchain technology and Bitcoin.

ŸThree Features of Bitcoin that are Different from Traditional Currency

The first of Bitcoin’s features is decentralization. As mentioned, existing banks that use central servers may have a risk of being hacked, and may not be controlled. However, cryptocurrency is very safe because hacking would require attacking every single user who participated in the network, and that is practically impossible.

The second feature is alternative possibilities. There are traditional currencies, such as the dollar and the euro, that can be used in many countries, but most currencies can only be used in one country. However, Bitcoin is an online network currency that can be used anywhere in the world.

The third is durability. Bitcoin does not exist in real form and cannot be destroyed in any way. Bitcoin, unlike bills and coins, exists permanently.

Bitcoin, also called digital “gold,” is valuable enough to be recognized as the national “money” currency in El Salvador. In addition, Bitcoin is recognized as an asset through the current law for special prohibition, and Virtual Asset Tax in Korea. In the future, Bitcoin, which contains various values such as blockchain technology and decentralization, will create a huge flow in our economic lives.