The most complete introduction to
Bitcoin. What is Bitcoin? Is Bitcoin a lie? You don’t know Bitcoin. You are too out. Let me give you a lesson. Bitcoin is actually a virtual currency, but it is a decentralized currency system, which means it’s not like others. Currency or virtual currency, there is a central issuing agency, such as the US dollar from the Federal Reserve, the Renminbi, the People’s Bank, the People’s Bank, and Tencent, etc. Bitcoin is controlled by all bitcoin users, and there is no central agency or server and system spread over the entire Internet users. Each node at the end ensures fairness, reliability, and security in currency issuance, management, and circulation, and at the same time avoids inflation and currency forgery.
On October 31, 2008, a person who claimed to be Satoshi Nakamoto published a paper on the Internet, Bitcoin, a peer-to-peer electronic cash system. Ten days later, a project called Bitcoin appeared on South forage.net, the world's largest open source website. On January 3, 2009, the world's first Bitcoin was born. On August 19, 2013, Germany was the first to recognize the legal status of Bitcoin. The government recognized Bitcoin as the legal currency on the 19th, becoming the first country in the world to legislate to recognize Bitcoin.
The German Minister of Finance recently announced that the country will recognize Bitcoin's legal and tax status, and the currency holders will be able to use Bitcoin to pay taxes or for other purposes. The German Ministry of Finance stated in a statement that Bitcoin is a financial instrument under the German Banking Regulations. An electronic payment system is also based on the principle of cryptography, rather than based on sex, so that any parties that have reached an agreement can directly make payments without the participation of a third-party intermediary.
Simply put, Bitcoin is actually a string of numbers based on cryptography. However, due to its many characteristics, it has the conditions to become a currency, and is even superior to the monetary system of gold and credit in many aspects. Ou Rong, how can you get bitcoin? The production of bitcoin is similar to gold, and it needs to be auctioned. It's just that gold is mined from underground gold mines, while Bitcoin is mined from a specific public algorithm based on the Internet, and drills into the underground mining machine, which we call mining machines. Similarly, we need to configure a system to run Bitcoin mining algorithms to obtain Bitcoins. We also call this system a mining machine. People who mine and produce Bitcoin are called miners. Everyone can become a miner. , Therefore, there is no central issuing notice. The original Bitcoin mining machine was actually the ordinary computer we used, and only needed to execute a set of specific algorithms. However, as the number of miners increases, and the total output of Bitcoin is restricted by algorithms, it becomes increasingly difficult to mine Bitcoin. It is no longer realistic to use the CPU of an ordinary computer for mining. After that, people used graphics cards with faster computing speeds and did not dig. Later, more professional companies and teams designed special chips for the Bitcoin Zhanhuaju algorithm, and configured and assembled them into professional mining machines. Since many investors do not want to go deep into the specific technology of Bitcoin mining machines, but want to invest in mining machines for mining, services such as mining machine custody have been created. What I am using is a cloud mining machine technology. A professional company will help me manage and maintain the mining machine network. I only need to collect coins. I said for a long time, so what can Bitcoin do?
Speaking of the application of Bitcoin, it is now very extensive. In the Internet world, it has become the most recognized virtual currency globally, such as my press, "The Pirate Bay", Reddit and other well-known blogs , Music, movies, book software, and social networking sites have all opened bitcoin payment platforms, and more and more offline merchants have begun to support bitcoin payments. October 2012, designed to provide payment solutions for Bitcoin bitch pay the company released a report says there are already more than 1000 merchants to accept bitcoin payments through their payment system. From no barbecue in New York, to the Howard Johnson Hotel in California, from the Fullerton Convention Center to weddings in Oklahoma, the number of vendors accepting Bitcoin payments in cake shops has continued to increase, and now they have signed contracts with beat Has exceeded 8,000. In Europe, a chain of dentists participating in funeral service companies began to use Bitcoin for payment. With Bitcoin, you can also buy brands such as Sala Forever and Deep Mining Source.
At present, many companies in 98 countries can buy more than 500,000 kinds of goods through Bitcoin. In addition, Bitcoin has even begun to impact the real estate market. Some people have used Bitcoin to buy a Porsche sports car, and Bitcoin has appeared on the streets of Cyprus. Coin ATM, I didn't expect Bitcoin has become so popular. In addition to trading with Bitcoin, Bitcoin itself has also become an emerging investment product. From 2009 to the beginning of 2010, Bitcoin was worthless. In the following six months, one Bitcoin was worth less than ten times per cent. In the summer of 2010, the sudden tightening of supply led to an increase in demand. The online transaction price of Bitcoin began to rise until early November. One Bitcoin rose to 36 cents. In February 2011, the value of Bitcoin rose more. The total consulting website slash The store has reported that Bitcoin has risen to the equivalent level of US$1.06. In the spring of 2011, the well-known American financial magazine Turgus reported on Bitcoin, and its value soared from the beginning of April to the end of May from 86 cents to 8.89 U.S. dollars and then to 29.57 U.S. dollars. It has appreciated 34 times in half a year and is in circulation. The market value of all bitcoins has reached $130 million. Today, Bitcoin has been around for twelve years, and its value once soared to a maximum of 20,000 US dollars each, which has increased by a million times, and is even called electronic gold. The value of the entire Bitcoin trading market has exceeded tens of thousands. One hundred million U.S. dollars. From the show just now, we have seen the crazy market of Bitcoin. You can use Bitcoin to donate to buy things, and some businesses accept Bitcoin as payment.
On May 17th, the world’s first Bitcoin Conference was held at the gate of Silicon Valley in the United States. San Jose held a virtual currency on the Internet. Bitcoin has rapidly developed into a global payment method in just a few years. A kind of virtual currency on the Internet is called Bitcoin. , Then what is Bitcoin, and who is behind the skyrocketing price? The value of Bitcoin has skyrocketed by a million times in twelve years. It is astounding. On the topic of Bitcoin, a reporter from Xinhua News Agency conducted an interview with relevant experts. Black can be called Bitcoin. Recently it is a very popular auction. , It’s hot, and everyone is talking about Bitcoin nowadays, and more and more people agree that reports about investing and using Bitcoin are overwhelming. In July 2014, the Bitcoin One Day House Stock Exchange Trading Fund came out in the United States. Because of his work "You Must Die", the American twin brother Taylor Winklevo, famous for stealing their ideas by the founder Zuckerberg S and Melen Winklevoss founded the Bitcoin exchange-traded fund, and revisited all the Klevos brothers than the Kobe trust fund, and submitted an application to the US Securities and Exchange Commission sec. The brothers sent it through. Kerberk won more than 200 million US dollars in cash and non-floating available tickets, and they are now preparing to invest these wealth in Bitcoin. Not long before Ya'an Earthquake One Foundation accepted Bitcoin donations, Huo Qingchun, director of the cooperation development department of the Foundation founded by the famous movie star Jet Li, announced the Bitcoin donation address for the Ya'an Earthquake Foundation, and said that it had received 233 donations for Bitcoin. Schoolnet co-founder Yang Yaorui devoted himself to the bitcoin market. Schoolnet has now been renamed Renren.com, known as China’s Facebook. Co-founder Yang Yaorui was still enjoying beach and surfing in Sanya, Hainan in May this year. I don’t know how to touch the wall thickness of Pique. In less than 30 days, it has put out its savings and devoted itself to the construction of its entrepreneurial team Asi. Venture Capital Venture Fund Zhaotong Bitcoin In May of this year, the Bitcoin exchange website announced that it had received US$5 million in financing. The leading video and venture capital fund Union square participated in the investment containing stabilizers, and the Bitcoin platform beta hand received US$1.5 million. Seed financing. Co star, a large-scale integrated bitcoin trading platform, won the second and second prize from the venture capital firm Tribeca venture partners in April this year.
In 2012, a representative of the Democratic Party in New Hampshire became the first major party politician to accept Bitcoin political donations. In March of this year, the Canadian Liberal Party began to accept Bitcoin. In April, the U.S. third party Liberal Party began accepting Bitcoin as political cash on its official website. Governments and banking sector audiences Bitcoin and the European Central Bank issued a report on Ditcoin. The legal framework for exporting Bitcoin is not yet clear. The issue of Bitcoin's legal framework has been raised at the meeting of the branch committee of the European Commission. At the International Monetary Conference held in Shanghai in June for Federal Reserve Vice Chairman Janet Yellen, the U.S. government is studying the potential risks of online payment exquisiteness such as loss and Bitcoin. At this IMF International Monetary Fund annual meeting, financial managers in various countries are not concerned about gold, but Bitcoin.
Regarding Bitcoin funds, the China Securities Regulatory Commission also issued opinions. As an emerging matter, such funds are facing the problem of standardized operation. At the same time, this form is currently not within the scope of supervision of the Fund Law. Bitcoin is a virtual currency. As a new type of investment product, relevant departments are still observing and studying Taobao to form a complete Bitcoin industry chain. After four years of birth, Bitcoin is not for most people. However, Taobao has already formed one A complete industrial chain from production to spring seed. It can be said that the development of Bitcoin in China has begun to blow out. Open Taobao to search thousands of bitcoin-related treasures, including upstream bitcoin mining machines, "midstream trading shops", "downstream bitcoin settlement shops", etc., and can panic and plummet trading prices through global stock markets. Qingwen news on June 21, according to foreign media reports, US stocks Zhongshun has seen its biggest one-day drop since 2011, but bitcoin trading prices have stabilized the most, bitcoin traders are subject to supervision, and virtual currencies may be on the right track. The mt confession on the world's largest bitcoin transaction was once closed by the US government some time ago. After that, it was registered with the US currency regulator, began to accept its supervision, and reopened its trading business. This historic event shows that Bitcoin has been officially used by the United States as a currency pair. It has been a shock to make Bitcoin to a point of overturning. It is like a position in the world, just like Taobao in China, and Push is the world. Alipay. An executive of Shouxin said in an interview with reporters only after using the bill that one is exploring how to integrate Bitcoin into the paypal payment network. The Beijing News reported on July 8, senior media person Xin Haiguang, At present, the Chinese are caught in investment dilemma. Foreign and local people are appreciating and buying stocks are covered. In case Golden Bundi buys chili and garlic, it is afraid of collapse. After comprehensive research, experts recommend the most suitable for Chinese to hold. Value-preserving product, the mystery of Bitcoin Why does Bitcoin allow so many people to be forced by fans? Let us first recall what currency is in the wretched Potamia Plain 5000 years ago. The confusion with transaction records is the earliest currency in human history, as well as the shells used by the Asian Minor people and the special stones used by the Pacific island tribes. The real medium used by Indians is the most primitive type of currency. However, in the history of the world, all ethnic groups eventually chose gold as their currency. Gold is bizarre, rare, beautiful and completely diseased, which has expanded the trust of all ethnic groups in the world, thus naturally becoming a superiority. Pricing special products in exchange packages.
This happens to be the most basic definition of currency. With the continuous development of society, the credit currency fiat currency issued by governments of various countries, which is what we commonly call the directive, finally boarded the stage of history and has continued to this day. Nowadays, there are more than two hundred national or regional currencies in the world. Since the law itself does not have value, it is only the government credit as a guarantee loan, a medium of exchange, and the government can control its issuance at will. The entry of legal currency has brought people economic prosperity and freedom of trade, but at the same time it has brought a lot of confusion to mankind, but now the spicy wine of currency and capital has become a social concern.
In 2008, a financial crisis originating from Wall Street in the United States swept the world and lasted until four years later. This crisis triggered a debt crisis in Europe. European countries such as Qingtian, Greece, Italy, Spain, and Portugal still cannot In the drone footage, the whole of Europe is trying its best to survive the crisis. From the end of the last century to the present, in just over a decade, there has been a digital financial crisis around the world, the Asian financial crisis in 1997, the sovereign debt crisis in Latin American countries in 2001, the subprime mortgage crisis in the United States in 2008, and 2009 The European war crisis in the Eurozone broke out in Europe in 1988. The CPPCC crises were interrelated and influenced each other, and they were the source of each other and mixed results. The irony is that when governments accept these currency-induced crises, the usual practice is to put more currency into the market. After the financial crisis broke out, the U.S. government announced that it would focus on the capital market for 700 billion U.S. dollars, the European Central Bank and the United Kingdom and the Swiss Central Bank would add 90 billion U.S. dollars to the peak of the financial system, and the Japanese government would plant 8 trillion yen in the financial market. Temporarily rescued the crisis, but it led to another more deadly crisis, inflation.
Excessive currency issuance is inflation, which is actually an unreasonable tax, and the right to issue currency is in the hands of the government, so inflation is almost inevitable. Zimbabwe issued a 100 trillion denomination banknote in 2009. In recent years, more than 50% of Zimbabwe’s fiscal revenue came from currency issuance. This resulted in hyperinflation in Zimbabwe. Historically, only large inflation was sent. The exceptions are the result of excessive currency issuance by the national central bank. At the beginning of the 20th century, inflation during the Weimar Republic of Germany not only led to the decline of a country, but also led to the outbreak of the Second World War. In the late 20th century, inflation in South American countries ruined the fruits of decades of economic development in these countries, and they have still not escaped the trap of advanced downturn. In fact, although governments of various countries are pursuing their own legal currency, each country has not given up on gold reserves, which means that currency issuers do not have enough confidence in themselves that gold still has not withdrawn. On the stage of history, governments of various countries are scrambling to reserve gold, and people have always lacked sufficient sense of security in the issuance and use of credit currency. In recent years, many virtual currencies based on the Internet have also been released. In fact, these virtual currencies and legal currencies issued by the country Very similar, it is also issued by a central agency, but because the issuer is only a company, it is impossible to have the credit of the country, and the country cannot grant a company the right to issue currency, so these virtual currencies can only be issued within the company or Use within the scope of the company's services.
Out of comprehensive consideration of the characteristics of the current currency system and the advantages of gold, and the massive demand for virtual network transactions, Bitcoin was born. What characteristics does it have that makes her so popular? Let's analyze it carefully. With decentralization, Bitcoin is a distributed virtual currency. The entire network is formed by the users themselves. There is no central organization or central server. All are based on a peer-to-peer design, which means that every user is equal. One of the components of the Bitcoin system. This feature ensures that Bitcoin is safer than any current currency, because it does not fail or bankruptcy. Only the central institution and the company will fail. Other currencies rely on The central bank, if the central bank fails or loses control, then the entire monetary system collapses.
Al does not need a third-party institution in today’s society. Most of our money is stored in the bank. Our transaction payments in trade activities are actually based on trust in the bank. We transfer money from one account to another. The bank’s system only modifies some numbers inside. If the bank goes bankrupt, the money will evaporate. Bitcoin does not need a bank to help us with transactions. We only need to fill in the other’s Bitcoin wallet in the Bitcoin wallet software. Encoding, you can directly transfer bitcoins to the other party’s wallet with exclusive ownership. As long as you have your own secret kiln, your bitcoins will always belong to you and cannot be stolen by others. This is based on the fact that cryptography cannot be cracked, and there is no need to deposit funds in a third party, such as a bank. No matter how high the credit of the third party, it cannot be as smooth as the trust in the negative electrode, which completely avoids inflation. No one will manipulate the number of issuances, and the total number of bitcoins has been fixed by the algorithm itself, so bitcoin will never be inflationary. 5. It is more suitable to be a new game of armband Bitcoin than gold, because gold is very similar, but if it is used as currency, Bitcoin is easier to carry and divide. If necessary, each Bitcoin can be cut into ten or eight times. Brother is also safer, and can also be traded remotely, which cannot be done with gold. 6. Global free circulation does not occupy national and exchange rate barriers. As long as there is Internet, Bitcoin can be used equally. Transaction costs are low, because there is no center, although maintenance and transaction costs are lower. Recognition is a kind of Currency must be recognized by everyone, otherwise it will not become a currency for transactions. From the birth of Bitcoin to the present, people's recognition of it is getting higher and higher.
The recognition of ordinary currencies comes from people’s trust in the national government, but history tells us that the government cannot always find an absolute circumvention on the issue of inflation, and Bitcoin does not require people’s trust in others because there is no central authority. , But constituted by each user. Therefore, trusting Bitcoin is trusting people themselves, and humans always have the highest recognition of themselves.
Of course, as a new thing, Bitcoin still has many areas to be improved, such as its anonymity, how to control whether it can live in harmony with the Japanese government taxation, how to enhance liquidity, control investment behavior, etc., but Who would dare to say that the current monetary system is no problem and does not need to be improved? History is always surprisingly similar. In the history of currency division and financial development, when an innovation appears, no matter whether it has a positive or negative impact on the society, it will cause a redistribution of wealth and create a group of rich people. The first invented shares in the Netherlands created the glorious East India Company. The rise of the banking industry created the Medici Bank family in Bowen Town, Italy. The control of national debt and currency issuance made Rothschild almost monopolizing the entire world. The emergence of the German family has also completely subverted people's understanding of currency. Will it also bring about a huge financial revolution, or create a brand new field that is harmonious with the current currency system? Regardless, Bitcoin has been growing continuously since the fourth grade of its birth, and is actually creating a lot of wealth with the pioneers who have been involved in it. Let us take a look at how Bitcoin creates wealth for people. drop.
In a special gold rush, Tencent Technology reported on June 25 that all the doubts from the outside world did not stop the enthusiasm of parents and Bitcoin players from continuing to enter the market. In China, bitcoin trading and investment, mining chip production, mining machine production, mining enterprise assembly and even hosting services are shipping a new virtual currency industry chain and becoming the center of bitcoin production in the world. From the above report, we can see that the entire industry chain of Bitcoin includes trading, investment, mining, chip production, mining machine production, mining machine assembly, custody services, etc., and these industries have already benefited many people. . First of all, looking at Bitcoin transactions and investments, we can clearly see that from the initial 10,000 Bitcoins for two wholesales to the market value of 20,000 US dollars at the peak, the value of Bitcoin has increased by hundreds of millions. Ten thousand times.
Most emerging industries will have an early outbreak period, which produces violence and common crises. Someone has made such a calculation. If Bitcoin becomes an accurate guard against gold in the online world in the future, based on the current global central bank gold reserves of 12 trillion U.S. dollars, a Bitcoin will be worth as much as 570,000 U.S. dollars after 2040. Tencent Technology reported on July 15 that from 60,000 to 60 million, the network writer Sheng Yanbi Kobe shared the myth. The original miners will get a lot of money from CPU and gas, but now they are almost all professional mines. The world of machines is over. Beihang computer professional doctor pumpkin Zhang designed a professional bitcoin mining machine named Avalon. In a report in 165, the mining machine can generate 357 bitcoins per day. According to the Bitcoin price conversion on July 12 of that year, 1 Bitcoin is exchanged for 579 yuan, and the pumpkin zhang Bitcoin mining machine can produce 200,000 yuan a day. Pumpkin Zhang was able to generate such an astonishing profit. Although Pumpkin Zhang breathed a lot, he wrote the overlord clause when he used Pumpkin Zhang to ship bitcoin mining machines. Even so unreasonable, Pumpkin Zhang received more than 300,000 chip orders that year. It is worth hundreds of millions. Of course, the output that cannot be controlled at present cannot be so high, but the market price is still being fired to 200,000 to 300,000, one of the most famous mining company in the world, and the butterfly laboratory in the United States, and The newly emerging Beehive Studio. The purchase of the Red Butterfly mining machine currently requires reservations, and there is no accurate delivery schedule. Many users have already paid for the reservation in April this year, but still did not arrive in July. Honeycomb Studio uses Google cloud services to bind professional chips to design the most advanced cloud mining machine, and currently uses crowdfunding to expand its scale with external cooperation.
In addition, many venture capital funds and entrepreneurial companies are constantly entering the Bitcoin mining industry, and this is the embodiment of Bitcoin's decentralized spirit of freedom and equality. The future of Bitcoin Some people say that Bitcoin has no actual value, nor does it claim that it has a trust system, or that there may be other virtual currency dropout problems that will make Bitcoin worthless, but all current currencies, which A god-level value, whether it is US dollars, British pounds, or Euros, is just a piece of paper. The source of their value is not itself, but is reflected by the value of the national government's credit guarantee. The essence of currency is credit. As long as it can be recognized and trusted by people, it is valuable and can become currency. Other technical details can be improved and revised, but credit is the foundation of everything, and we see that Bitcoin was born from it Up to now, no matter how the value fluctuates, it has finally been recognized and trusted by more and more people. Among this group of people, Bitcoin has become a kind of monetary value. The only thing he can do is that the central agency will not be credited for bankruptcy due to inflation. People trust themselves, so this snowball of trust is bound to grow bigger and bigger, and the dead The expansion of this trust range and the special payment will surely become the currency of the world. There is no need to worry about the emergence of other virtual currencies, because Bitcoin can become a currency not because of technology, but because of credit. Once Bitcoin gains the credit of global users, it will not lose credit because of the appearance of other virtual currencies. Instead, new currencies must consider how to obtain credit. Even if the credit obtained by the new currency is used for the credit of Bitcoin, it can coexist. Does not conflict.
Bitcoin, as a new thing, has gone from obscurity twelve years ago to the gold rush that is set off today. No matter how many twists and turns there are in the middle, the angels have mixed praises and derogations to him, and he always carries with him what he was born with. Freedom and equality, let more and more people know and accept, let us see and understand with an inclusive and open heart. Bitcoin is the origin of a free currency, just like human society itself is step by step in constant attempts, as a Bitcoin practitioner said, the current monetary system has brought humanity to mankind over a period of thousands of years. The prosperity has also brought disasters. Until now, we are still constantly improving the monetary system. Bitcoin itself is a direction to improve the monetary system. Maybe it is not perfect, but at least it is on the road to perfection. .