Financial observer Lv Benfu: bitcoin slump, who is the culprit?


1, Chinese bit, Wu Jihan as the core and Australia Australia called the Cong is set off two wars, the two camp holds bitcoin well-matched in strength, confidence in the setback, hard bifurcation caused this bitcoin crash.

2, hard bifurcation may be a good thing, as you often may not be a serious illness, is the organic reaction of the body. Because of the existence of bifurcation hard, without monopoly.

3, the central bank issued legal digital money, little money those wild do not have much value, the digital currency large little impact.

4, the official digital currency may be a stable currency, and wild folk issued digital currency exchange relationship establishment.

In 2017 5, when the digital currency speculation bubble, some leaders called for: all in! The suspect cut chives. They had built warehouses, waiting for their leek approach, a fierce cut.

6, bitcoin speculation left sequelae, is really a feather. Everyone’s mind is very impetuous, because now there is ICO, the air of currency speculation, a lot of people want to get rich overnight, so you may also disrupt the mentality, the lessons we need to learn.

7, there must be any bubble burst, don’t think you are a master, it is possible that you get is the last bar. The blockchain only got a better application, can solve practical problems, it is possible to restore market confidence.

[background] news

8 2017 1, due to the bitcoin expansion and anti expansion faction faction can not reach a unified bitcoin bitcoin cash branch. 11 2018 15, bitcoin cash (BCH) has opened a hard branch. Hard bifurcation is when the bitcoin protocol rules change, if the old node refused to accept the new nodes created by the block when the block chain will be divided into 2 independent chain. In the 2 block of miners need to choose a chain of mining, and then continue their think the correct block chain.

This BCH has two main bifurcation hard war camp, is a bit CEO, Wu Jihan represented BCH ABC, another Australian represented by Craig White BCH BSV, who claimed to be the founder of bitcoin Nakamoto, and thus got a nickname “Macao satoshi”. In order to compete for the two bitcoin cash “orthodox” position, launched a “war force”, this battle, caused the former “mother coins” bitcoin (BTC) cliff fall. From November 15th to November 27th, only a week’s time, bitcoin highest drop of 40%. At the same time, bitcoin slump also led to decline in overall stress, many mine miners were forced to shut down, a large pool also have different degrees of spread.

When the bitcoin fell, one of the reasons is that BCH (called bitcoin bifurcation caused by hard cash). Not a lot of money to friends, even friends of money itself does not know what is the meaning of bifurcation. We say that the digital currency, it is a system of accounting, we just say that recorded in the inside of the chain block. Is a number, a code has a lump in the computer inside what we call the blockchain. Remember the blocks inside are 0, 1, 0, 1 symbols.

For example, in the year when the Cong bitcoin, put bitcoin, for example when the most, for it is one trillion, called 1M. Of course, then people feel that 1M is not enough, for example, 1M I want to do when I write smart contracts, a contract may be accounted for by a M, so I need to put this piece of expansion, the block expanded, it became what is now called bitcoin cash, called BCH. This is the first time bifurcation.

Those who stick to the original Nakamoto principle is not willing to fork, still the bitcoin block is a block definition. If you agree with one, that is the old agreement. If you want to change, you have to put it into say 8, 10 or even 40 trillion trillion trillion, now called BCH, called bitcoin cash to redefine, this is called bifurcation. So because we cannot reach the agreement, the old way of old and new ways of the new. So when the currency is divided into two kinds, is stick to the two protocol, in block remember the coin on the bifurcation.

At the beginning of October this year, there are two camps, by November there is bifurcation of war. What branch? For example, in the future development of BCH, one is the China, bit Wu Jihan as the core, the other party is Australia, Australia called this hearing, he said he is Nakamoto, no one confirmed, so the network call him Okumoto So, two people can not reach an agreement the. This piece of what? Block inside agreement on how to write? And no agreement is reached, everyone who writes is higher than, than those who write fast. General fast fish eat slow, I this write more, write fast, I’ll cover you. So there is a force called a war.

Wu camp and Macao the Cong camp, a fierce battle in a while ago, he and computing than who camp computer level fast, high levels of calculation. If my this block fast cover you will beat you. Now, unfortunately, the two camps to write now well-matched in strength, speed, the speed of building blocks almost anyone who is not satisfied.

So like a palace, two prince. Now the two prince was still fighting, who can inherit the orthodox, inherit the future, there is no winning, so it makes people who own bitcoins who is full of the. Bitcoin originally assigned a fork, now to BCH and a fork. So what will I hold which currency is the mainstream? Cash is very vague, so hard bifurcation caused a cause of the bitcoin crash.

So in fact in the digital currency market, due to different camps can be reached, because there are differences, bifurcation phenomenon is more. But in order to maintain their own past digital currency assets, most of the time can reach a compromise. You have to admit I agreement, I have to admit your agreement, we call this rewriting. Even when there is a back track, in the past those that do not block the bifurcation. We again re forward contract.

But there was no agreement can be reached, the bifurcation is hard. So hard it should be said that the bifurcation of bitcoin market, the digital currency market caused severe turbulence, or dramatic effect. But some people say it is a good thing, why is it a good thing? Like you always cold, often cold it may not be a serious illness, it is the body’s organic reactions. Because of the existence of a bifurcation in the hard, bitcoin mining market, digital currency in mining market, there are two forces or two forces well-matched in strength, so as not to form a monopoly.

Because the digital currency market, especially private digital currency market, they are still very concerned about is not a monopoly, you form a monopoly, it is a center, the center of the past and the role of the central bank is different. We know that the central bank or the national credit endorsement, we still believe it. If you are a folk and wild, you form a center, you have great power, no restriction, these money holding netizens are not even relieved. So hard to some extent reflects the bifurcation is well-matched in strength force, it not only caused the market shock, which in turn shows that mining market forces are balanced, perhaps is healthy, it depends on how you look at!

[background] news

In China, ICO has become fashionable for a time, a liar gathered. ICO is similar to digital currency in the community IPO (IPO), through the illegal sale of financing subject tokens and circulation, to investors to raise bitcoin, the so-called “virtual currency currency ethernet”. Issuers use “Navy” released ICO project on social networks, the release of false signals induce investors into the office to be harvested leek, and even the platform Xue Manzi, Yan Yan and all the chiefs for. In September 2017, the central bank, the Commission, the CBRC and other ministries issued “on the issue of financing risk prevention token notice”, ICO was identified as illegal financing, all kinds of token offering financing to be halted.

The central bank China in last year’s regulation, we believe it is a good thing. For example, this thing the bitcoin fell sharply, most of the Chinese institutions will hide in the past. The theory said that before 2017, Chinese is mainly digital currency speculation, and even mining countries, this time we may have relatively little loss, regulators are not as. Because we said digital currency, it issued a sense and compared notes, it does have its advantages, note you must print, have what? There must be the cost of printing and so on. Digital currency theory and its circulation without friction, also do not need to be printed, so the money is now than there are a lot of advantages, so each country’s central bank also issued the official version of the digital currency.

For example, the people’s Bank of China, we have a research on monetary figures, official figures on the special issue of legal tender currency. In fact, many of the world countries have issued a digital currency official in the research, it has its advantages, it also has the benefit of exchange, also do not need to be printed, also basically if there are encryption reasons, can not be false. And this kind of wild bitcoin, Ethernet square and so on is not the same. If bitcoin, Ethernet square and so on, though wild, but it has become a fact of the industry standard. Other small digital currency, for example, we say now when the peak of the 200 kinds of digital currency speculation, even when some people say that in preparing for the release of nearly 2000 kinds of small coins, those wild, after issuing digital currency in the official, may not have what too much value on this. Large scale digital currency is little impact.

For example bitcoin is still valuable, the etheric Fang is still valuable. But the official digital currency because of official endorsement, between it and the various currency exchange relationship is likely to be stable. So I personally think that the official release of the digital currency will be a stable currency, what is called a stable currency? The past is like gold as currency exchange material, after the official release of the digital currency, it may issue and now the folk digital currency is a digital currency just wild has an exchange relationship. You say, although bitcoin in the country now application is not too wide, you want to go to Japan, even Germany, you can buy bitcoin is coke, it is a kind of special POSS machine can receive the money paid, so with all the official release of the digital currency, it should be said that the application range is gradually in the expansion.

When the peak in 2017, some leaders called for: all in! Is the best of all of its assets are replaced by digital currency. I think this time, now look back on some of the suspects cut chives. In other words, they had built warehouses, waiting for those who enter a leek, fierce cut through. You are now back to see some bigwigs can find traces of the speech. From this point of view, they are in a bubble of speculation.

But the digital currency market, especially the blockchain technology, there are also some technical team really honest and diligent in the development of some technology in. The development of some of what? For example, how the cross chain chain, how to measure, how to make the blockchain technology not only can adapt to market secure encryption, and can accelerate the speed of transactions.

As we know, with this block chain’s largest technically in where? It is a second transaction speed is very slow, but you say we go to Alipay now, a second can trade millions of times are possible. Especially the Spring Festival to buy a train ticket, you can brush a minute how many times?

But bitcoin blockchain no, it a minute only trading so many times, when the Cong in the design of the time, there is no design it so high frequency, because it is very complicated to confirm each other. So the block chain technically, it is not suitable for high frequency trading places. So now a lot of technology in master to break this. If we block chain technology not only has high frequency, but also relatively safe, but also can be used in the high frequency trading, this is not a very good?

So I say Nishajuxia, is actually the case. First, it is a bubble component, there is a suspense cut chives, he is cloth baguazhen, let you go. But there are a lot of people in the industry technology development in this wave, really for the benefit of the community. If you had a good technology developers, now see through others overnight, in the year of madness is really rich, I buy a few cents this month, next month may be up to ten dollars. A month gap, a month gap at around one hundred times. You say a lot of people are tempted. So that a lot of people and technology development, also have no idea to do the technical development, also began to join the currency speculation on what.

So bitcoin this one left sequelae, is indeed a feather. Everyone’s mind is very impetuous, because now there is ICO, the air of currency speculation, a lot of people want to get rich overnight, so you may also disrupt the mentality, the lessons we need to learn.

Anything is a bubble, there must be a break when you don’t think you are a master, it is possible that you get is the last bar. This time has been to the point where you Xijinqianhua, only to get a better sense of the application, to solve practical problems, it is possible to restore confidence in the market, is likely to return to the high price.

Editor: vision SEEC spring culture media

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