Everything starts with the bitcoin red packets that I accidentally snatched on the first day of the new year’s day. I only snatched one of them, 0.000001 BTC red packets, which is about 0.25 yuan. That is to say, the 0.25 yuan red packets made me very interested and curious about the special coins. The most important thing is to cash out the collected wool, otherwise it would be a waste of money. In this way, I began to study bitcoin. Bitcoin is not a new thing. I have heard about it several years ago, but I have never seriously understood it. Disclaimer: the following is my personal understanding of bitcoin and blockchain, which is very subjective. I am only responsible for my personal comments. Writing this article does not mean that you are asked to buy bitcoin, nor does my buying bitcoin mean asking you to buy bitcoin. When it comes to blockchain, bitcoin cannot bypass blockchain. What is blockchain? Blockchain is a special distributed database. Its main function is to store information. Any information that needs to be saved can be written into or read from the blockchain, so it is a database. Anyone can set up a server to join the blockchain network and become one of the nodes. There is no central node in the blockchain, and each node is equal. The data in all nodes will eventually be synchronized to ensure the consistency of the blockchain. There is no administrator in the blockchain, that is to say, it is completely decentralized. It is very difficult to delete the stored information on a node. All nodes on the blockchain must be deleted to achieve this goal. For example: suppose there is no real currency in a Lilliput, and all transactions are accounted for by everyone. Cuihua bought 10 yuan pork in Laowang’s shop. Then Cuihua reduced 10 yuan in Cuihua’s account book and increased 10 yuan in Laowang’s account book. At this time, everyone took out the account book to record the transaction. Over time, we found that not all the transactions were related to themselves, so we elected a bookkeeper to be responsible for recording each transaction. At the end of each day, the bookkeeper cleared the accounts and published them. After checking the accounts, everyone took out their own account books and wrote down the date of the day and kept them. According to this logic, Lilliput will produce an account book every day, and an account book is a block. Two adjacent date books are linked to form a “chain”, so it is called a blockchain. The bookkeeper is busy recording every day and can’t go out to work to earn money. Without income, no one is willing to be the bookkeeper. Therefore, everyone agreed to pay 1 yuan to the bookkeeper for each transaction completed. With the increase of transactions, the remuneration of the bookkeeper also increased. We found that bookkeeping is a hot topic. Everyone wanted to be the bookkeeper. Finally, we decided to choose the bookkeeper by tossing coins. Blockchain is to select bookkeepers through a method that is recognized by all, also known as “consensus mechanism”. Bookkeeper is the “miner” in the blockchain, and the process of bookkeeping is also called “mining”. Because bookkeeping is remunerated, people will strive to do bookkeeping, that is, “mining”. Some people live far away and can’t go to the bulletin board to copy the published accounts. At this time, he can copy the neighbor’s account, and the neighbor will copy the neighbor’s account, because everyone has an account book in his hand. If you want to modify the account book data, it means to revise all the accounts in the hands of all people. It is hard to imagine the difficulty. The information of each node is point-to-point, and each node has a synchronous account book, that is, a distributed account book. Each node has the right to record the account book. The specific person who records the record is selected by the “consensus mechanism”, and the bookkeeper can get the service fee. Because the account is distributed and linked by time and date, the account book is hard to tamper with. In fact, blockchain is an account book jointly maintained by all of us. This account book has the characteristics of not being tampered with at will, open and transparent, reliable and decentralized. The concept of bitcoin (bitcoin) was first proposed by Nakamoto. Bitcoin is a kind of virtual encryption digital currency in the form of point-to-point. The transmission of point-to-point means a decentralized payment system. Different from all currencies, bitcoin does not rely on specific currency institutions to issue, and transactions do not need intermediary agencies. It is generated through a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole point-to-point network to confirm and record all transaction behaviors, and uses the design of cryptography to ensure the security of all aspects of currency circulation Sex. The point-to-point decentralization and the algorithm itself can ensure that the currency value cannot be manipulated artificially through the mass production of bitcoin. Based on cryptography design, bitcoin can only be transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total number of bitcoin is always limited to 21 million, and it is extremely scarce. (excerpt from Baidu’s explanation) people use real-world fiat currency to define its price, and use stable currencies such as usdt and Dai to make it a currency that can be used and circulated in reality. At present, the price of bitcoin is 49000 US dollars / piece. I bought 0.0019 bitcoin test water with the red packets I received in the new year. I don’t need to say what kind of year 2020 will be for financial and monetary knowledge. In this year, the word “water release” has been raised again. What is “water release”? That is, to release liquidity, central banks turn on the money printing machine to print money. Money is everywhere, just like forgetting to turn off the tap. Money can be printed, but there is no way for assets to be produced by opening a banknote printing machine, so the problem is to increase the price and cause inflation. What could have been bought for one yuan can only be bought with two yuan, and the purchasing power of money in our hands is reduced. The gold standard system adopted in the past has disintegrated since US President Nixon announced to the world that the US dollar and gold have been decoupled. Today, we are the dollar standard, or “dollar hegemony”. The United States only needs to use the depreciation of the US dollar to “evaporate” its foreign debt by more than one trillion dollars. No matter how serious the epidemic situation is in the United States, the U.S. stock market will never be short of money to spend? Is it true that the United States is allowed to do so? The US dollar, which has lost its anchor of value, can still be maintained by technology and military hegemony, but it will eventually fail. Bitcoin is essentially a hedge against unlimited inflation of French currency. Looking back at the year of domestic A-share market, the improvement of the epidemic situation and the central bank’s “water release”, the stock market ushered in Davis double-click effect, the fund rose, and the A-share plate rotated. I watched SF from 40 to 117, Fuyao Glass from 18 to 60, and BYD from more than 50 to 290. I couldn’t understand the stocks at that time, which proved that I couldn’t earn money beyond cognition. There is no such thing as sudden wealth, investment and financial management. Just think about it in a dream. Seeing this, I’m not sure whether or how many people will buy bitcoin. Whether I buy it or not, I have three pieces of advice that must be said: don’t add leverage and don’t play with contracts. Don’t leverage. Don’t play with contracts. Don’t leverage. Don’t play with contracts. Three pieces of advice are the same meaning: don’t gamble, ten bets and ten losses! Disclaimer: the above is my personal understanding of bitcoin and blockchain, which is very subjective. I am only responsible for my personal comments. Writing this article does not mean that you are asked to buy bitcoin, and I do not mean to ask you to buy bitcoin. Finally, I wish you all to move forward towards a bright place in your heart and realize your ideal as soon as possible.