What is [for the mystery] quickly read “coins”?

What is [for the mystery] quickly read “coins”?

Bitcoin, few people have not heard, many people did not understand.

This is a popular post, trying to use the most simple story, let you as clear as noonday bitcoin sequence of events.

The story happened in 2008……

A network called Satoshi Nakamoto (Translation: Nakamoto) people in a secret cryptography website posted a report.

This report describes his new concept of electronic money, including the algorithm and formulas are very detailed.

The algorithm is completely open, everyone can see a glance of it in its entirety.

From this day, a new thing — Bitcoin (bitcoin) born!

Nakamoto So’s paper has been countless programmers, economists, and began to help him develop the bitcoin network.

The bitcoin network, the world is linked to the distribution of computer. It has no central server to provide support, so no government or company can control its price, which is completely determined by the market.

Every transaction bitcoin, need to be recognized and accepted by all end users of it, to be valid.

Never played bitcoin, also must have heard the word “mills”. So what is mine? In fact, the “machine” refers to a special configuration of the computer, to improve the mining efficiency.

Of course, you use “small shovel” (computer), can also carry out mining, but the efficiency and large mechanical equipment can not be compared.

In order to facilitate the understanding of the industry, the computer through the calculation, to get bitcoin reward “of the whole process, referred to as the two words -” “.

However, this analogy, for ordinary people, are very misleading. That includes small, once the hearts have a misunderstanding: these “mill” consumes a lot of power resources, play a meaningless “mining” game, in order to obtain the virtual “mineral”.

Many domestic “fraud money” also use this misunderstanding, secretly set up a server, the name of “bitcoin” name, to attract everyone to play the “mining” game. Don’t dig? Never mind, you can buy!

However, the real “bitcoin mining machine” does not mean “game”, it undertakes the core work of the bitcoin network record (blockchain) and operation (hash). In simple terms, if bitcoin lost “mine”, as the train lost the front, no power source, everything will be stagnant.

All over the world “mill group”, completed a general network server function. This is why bitcoin can exist from the server.

This is a page of books, is through the “machine” by unified algorithm, record and operation out.

As the operation record and reward, N bitcoin, will automatically pay the calculation of the best and fastest “miners”.

Bitcoin algorithm, decided to issue a total limit of 21 million. When reaching this figure, it will not produce new bitcoin. At that time, no one is willing to provide “machine”, the bitcoin network will not go running?

The answer is no! The bitcoin network will charge a fee on the transaction, pay for mine”. If the “machine” too much, then each income may not charge. If the “mining machinery” is less, each Taiwan income will increase. This makes the “Mining Group” to achieve a dynamic balance, to ensure that the system will never interrupt. Uh ~ unless the world was a devastating blow to the internet……

Many people think, “a total of 21 million bitcoins, where the world ah?”

Bitcoin (BTC), can be split into 8 decimal places, at least you can pay 0.00000001 coins to others.

In May 21, 2010, completed Bitcoin in the history of the first transaction. You must not think that the deal was completed across the Atlantic, between the two continents.

Florida Laszlo Hanjez (Laszlo Hanyecz) programmer with 10 thousand bitcoin exchange $25 worth of coupons, buy two pizza.

You think that this is probably the most expensive in the history of pizza! Because a few years later, the transaction cost of bitcoin, equivalent to approximately RMB 85 million. Miserable programmers estimate now every night in tears……

At that time, 1 bitcoin =0.0025 dollars (about 0.02 yuan). And to the January 5, 2017, 1 bitcoin =1249 dollars (about 8895 yuan), creating the highest point in history. Pizzacompared trade the price value of about 500 thousand times.

Crazy after the “flash crash”, after a week from the beginning of January 6th, Bitcoin prices have fallen to about $750, a decrease of 40%. And all the investment projects, bitcoin also has great value of risk, is not suitable for ordinary people to participate in. In addition to the value of risk, there is a great risk of theft.

Bitcoin is just a set of numbers, plus a personal password. With the money compared to it without any protective measures. Stolen, killed can not come back. This massive fat, hackers will not let go.

“The world’s largest bitcoin trading platform in Japan, Tokyo Mt.Gox (commonly known as: Mentougou) filed for bankruptcy protection in February 28, 2014, the company CEO Mark Karpeles (Mark Parpeles) admitted that the platform was stolen 850 thousand bitcoins, according to the market price of about $500 million.

Bitcoin since all non real name, unable to track the flow, also popular black criminals favored industry.

“Once the” Silk Road “(Silk Road) web site, can be understood as” black Taobao”. Here, you can buy drugs, arms and other contraband, and the trading currency is only bitcoin. As can be imagined, this website will soon be destroyed.

At present, many foreign hackers to attack domestic user computer lock, and then blackmail and impose exactions on ransom. The request for payment of the currency, mostly bitcoin.

Where are the bitcoin significance?

Most of the money, is the central agency issued, they can decide the issue of the number of people (money) and exchange rate manipulation. Individual government wanton printing money (inflation), the dilution of their purchasing power, hand robbed naked people’s savings.

What’s more, the 2011 outbreak of the financial crisis in Cyprus, the state-owned banks to stop providing payment and settlement business to obtain cash flow. The deposit in the bank can not be removed, causing the unrest in the country.

Since then, people seem to smell the fragrance of bitcoin. It can avoid the financial security problem caused by the government control. Because it is not belong to any government……

This article from the network, for reference only, do not represent the views of BtcTrade bitcoin trading network platform.

Leave a Reply

Your email address will not be published. Required fields are marked *