Bitcoin is how to become a “rich artifact”?

Although these two days all bitcoin prices fell, but the market value of tens of thousands, “unshakable” ranked first.

You know, bitcoin from the beginning to today, has risen by thousands of times, so whether insiders or outsiders are not a sigh: I was never to buy bitcoin!

In fact, bitcoin just started not to give us currency speculation of the rich, it is defined as a set of electronic cash system.

Why do you say, 2008 years, a man named “Nakamoto who wrote a paper called” bitcoin: an electronic cash system point to point “.

We say that the development trend of the currency is bad money drives out good money, the meaning of this sentence is: when the actual value of lower currency, currency actual higher value will gradually become out of circulation and collection, for example, notes instead of gold, not only save resources, but also is convenient to carry and use.

So today, although the currency or monetary form, but we do not often use paper money, WeChat and Alipay are relatively easy to transfer transfer, even in 2008 when Alipay and WeChat have these things, bank card, credit card, why should this bitcoin this concept?

This is the background: in 2008, the world is in serious financial crisis, the Fed has been the issuance of currency inflation, Nakamoto think this central bank is not reliable, want additional cash issuance, is really too much!

So, he began to think about: how to contain the “willful” central authority, do not let it from time to time on the issuance or reducing the issue of cash……

A few months later, he came up with the answer: get rid of the Fed is certainly unrealistic, but I can re do a monetary system, get rid of the Fed this authority in this system!

In other words, since the Fed is “central authority”, contain the way it is certainly “to the center”!

Then, he had seen some combination of digital currency, created a completely to the center of the electronic cash system, called bitcoin”.

Point to the center of the point, what does it mean? If you turn to Bob 2000 dollars, if now payment, the transfer process of 2000 dollars is like this:

Your bank | WeChat | Alipay – Ming, that is to say, this 2000 dollars to go through the “bank | WeChat | Alipay” such a transfer station to reach the hands of xiaoming.

If bitcoin, 2000 bitcoin process is this: You – Ming, direct payment of receivables, no middlemen make the difference.

Since there is no issuer, no middlemen, bitcoin is how to produce, trade and circulation?

First generation:

Bitcoin is generated by mining, mining is what mean? Mining is the creation process, and maintenance of block essence, is actually do the math calculations work.

The underlying technology bitcoin is a chain block, we say that similar nested block chain chain, similar to a bookkeeping books, want to correct accounting math problems, answer math problems, good trading accounts, will be rewarded;

As the bitcoin can create a reward system maintenance bitcoin block. When the Cong bitcoin block first created in 2009, won the 50 bitcoins as a reward, so is the.

Needs to be emphasized is that bitcoin is not now that a lot of media with the golden coins, bitcoin is actually a string of code only, similar to the math “solution”, the total number of the maths problem is 21 million, which is also called constant quantity 21 million.

Followed by the trading and distribution of:

We say that bitcoin is decentralized, without need of transfer mechanism, can realize the exchange between two people. Then bitcoin transfer is actually very simple, just like email, offer your address, you can receive your transfer.

The address here is like a bank card account. We know that the bank card password, then in the bitcoin world, code named “private key”, so we say that the private key is very important, do not leak.

Mentioned transactions, must mention the actual value.

Bitcoin was not what the actual value is only a spread in some technical geeks community inside the “puzzle game”, we have nothing else to do, arithmetic, spell hand speed, get bitcoin, look for a sense of accomplishment.

Until a programmer. In 2010, the United States of Florida a programmer, two coupon, so buy with 10000 bitcoin, bitcoin was first given the value of the transaction, equivalent to down 1 bitcoins worth 0.3 cents.

When a new thing suddenly endowed with the actual value, people look at its eyes will be different.

For bitcoin, if the former “mining” is just a bunch of “coffee” at leisure pastime, then appeared bitcoin real value, to make this “entertainment” became “competition”.

Plus the time, just to catch up with the gaming industry slowdown, in order to support their family, some programmers and computer enthusiasts begin to calculate force competition for mining, has become a “miners”, in order to get bitcoin reward.

In 2010, shortly after the birth of bitcoin, the world’s first online bitcoin exchange “Mt. Gox” (Mentougou) on the line, so a wide range of bitcoin trading real start.

Bitcoin why in a short span of ten years of domestic violence by thousands of times the body?

Bitcoin earliest time and not worth the money, 10000 bitcoins can change two pizzas, why would it in a short period of ten years of domestic violence by thousands of times the body?

Here I would like to speak from the dark net. Bitcoin began large-scale circulation through the dark net.

Because bitcoin is anonymous, the encryption algorithm, can the parties to the transaction information is wrapped tightly, and easily escape the police to trace the bank.

Then, bitcoin has become an ideal Dark online currency. A drug dealer for $1 million to buy bitcoins, and then sent to the system’s address, after taking the system received bitcoin, bitcoin in exchange for dollars, every step they both are protected by the encryption algorithm, their criminal records can be concealed.

However, the dark network is also a small circle, it is a “see the light”, it can not let bitcoin into a known things, nor make bitcoin skyrocketing.

The real important cause of bitcoin soared is: many countries have announced that bitcoin legitimacy, some businesses have begun to support the use of bitcoin payment, which makes bitcoin ushered in the first round of the bull market.

After a big increase in the price of bitcoin, people realize that rarity, the total bitcoin is only 21 million and every four years by half, so that bitcoin scarcity has been enlarged, prices continue to rise.

Bitcoin is how to become a “rich” artifact?

A lot of people to achieve freedom of wealth through bitcoin: bitcoin mining people involved in the early, early bought and held a lot of bitcoin… However, bitcoin become the ultimate reason for making the rich artifact that is not the:

First, a lot of people involved in early bitcoin mining, at that time did not take bitcoin seriously, lost tens of thousands of bitcoin miners in a few;

Second, even if early to buy a lot of bitcoin, these people may not be long-term holders, but choose to sell at up to ten times, 100 times the time.

Really let bitcoin into “making the rich artifact in the underlying technology for private financing, will bring some inspiration.

Bitcoin price surge has spawned many other “tokens”, these tokens from simple transactions, gradually evolved into a similar pattern in private:

At present, there are a large number of global block chain item company, these companies to obtain financing through the issuance of either way, they released the day after the tokens can be traded like stocks.

That is to say, I held the company issued tokens, I have the equivalent of the equity of the company.

However, the blockchain digital currency issued by item company does not have the corresponding laws, cannot get the transaction settlement services for financial institutions, so many of these coins to exchange through the sale of bitcoin, because bitcoin can against the dollar, which has expanded the range of application of bitcoin.

In addition to the issue of digital currency financing, bitcoin has also brought a new round of business involves various outlet, bitcoin mining, trading and other aspects, such as: professional R & D, bitcoin mining machine chip and the hardware establishment of digital currency exchange etc..

So, bitcoin has become the new era of “making the rich artifact, not only lies in its value growth, but that it brings about a series of financial model exploration and practice.

(author: OK intelligence agency, the content from the chain have open platform content too “; this paper represents the views of the authors and do not represent the official position of the chain too)

Leave a Reply

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