The concept of Bitcoin (BTC) was originally proposed by Nakamoto in 2009. Its open source software, designed according to Nakamoto's ideas, is also a P2P network. Bitcoin is a digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system.
What are the characteristics of BTC?
BTC is different from most currencies. Bitcoin does not rely on a specific currency institution. It is generated by a large number of calculations according to a specific algorithm. Bitcoin economy is applicable to many nodes in the entire P2P network to record their own trading behavior and use it. Cryptography is designed to ensure the security of all aspects of currency circulation. The decentralization of P2P and the algorithm itself ensure that Bitcoin cannot be manufactured in large quantities. Cryptographic based design allows Bitcoin to be transferred or paid only by the actual owner. This also ensures the anonymity of currency ownership and liquidity transactions.
The biggest difference between Bitcoin and other cryptocurrencies is that its total amount is very limited and extremely scarce. The currency system has not exceeded 10.5 million in 4 years, and the total number will be permanently limited to 21 million.
What will happen to the future bitcoin?
In 2017, this is an incredible year for Bitcoin. According to the statistics of the citicoins website, Bitcoin has continued to rise from the location of $778 in January 2017, and has exceeded the historical high of more than 19,000 US dollars in December. As can be seen from the above data, Bitcoin is crazy. There is no doubt that there are many people using cryptocurrencies now, and YonatanSela estimates that by the end of 2018, at least 50 million people worldwide will join the cryptocurrency investment industry.
Most investors will realize that in addition to Bitcoin, there are other cryptocurrencies such as Ethereum, Litecoin, Dash and IOTA. For investors, they will diversify their cryptocurrency assets and manage their investment in cryptocurrency assets with an attitude toward traditional assets.
Bitcoin's fluctuating frequency is reduced, but other cryptocurrencies continue to expand. In addition, we will also see that as a strong response to the regulation, cryptocurrency will rise. Conservative estimates, I think the total market value of the entire cryptocurrency will hit $5 trillion by the end of 2018.
In the future, there will be a lot of institutional capital entering the highest quality projects, and during the financial crisis, the risk of investment will be much higher. Most corporate dollar methods raise a lot of money, but companies that can raise funds get a high return. Even in the financial crisis, capital will escape to high-quality assets.
Combining our knowledge of Bitcoin to cryptocurrencies, in short, I believe that in the future, the development of Bitcoin will be exciting.