My country power off the network bank failures, fortunately in bitcoin

Editor’s note: This article from the block BlockBeats (ID:BlockBeats), rhythm rhythm block BlockBeats Author: 0x30, authorized reprint by Odaily daily planet.

 My country power off the network bank failures, fortunately in bitcoin

Reddit is a topic of discussion five years ago: “if the end of the world, bitcoin will not die? “

Although born in bitcoin 10 years have been “death” more than 300 times, but about bitcoin’s death, the mystery Cong is in the same, more is no solution, the more people take over the railings.

Bitcoin Wikipedia has a special department introduced the “nuclear war” and bitcoin, if a nuclear war, and in the world within the scope of broken network, power and storage hardware, mining machine damage, how the bitcoin network will maintain.

From this extreme case we seem to be very far away, is now the country staged in venezuela. Since the beginning of March, Venezuela was “the most serious in the history of power”, 23 states, 18 states are affected, all cannot use the telephone, electric lights, network infrastructure and so on.

After years of hyperinflation and the economy suffered a recession, devastating power is to let the country one disaster after another city with a dense population, mainly including the capital, totally in the dark, shops, hospitals, schools, banks and so on these daily necessary service has been hung up, people like living in a disaster in the end.

When economic crisis occurred, residents of the hands of the cash and bank balances become meaningless in numbers, the value of bitcoins will naturally come out. A netizen twitter said, “my country power off the network bank failures, bitcoin is ok. “

For the first time in the history of bitcoin affected by power outage

Power off the network cannot destroy bitcoin, but can have a direct impact on bitcoin transactions. The blackout occurred, Venezuela’s bitcoin transaction amount, transaction volume, active addresses are experiencing a sharp decline.

Although there is no direct evidence to Venezuela’s bitcoin trading and power together, but this is bitcoin history, the first time the impact of the blackout.

According to the statistics of the blockchain data analysis firms Santiment, the first is the number of bitcoin transactions in Venezuela fell sharply, from 37 million to 24 million pen pen dips.

 My country power off the network bank failures, fortunately in bitcoin

Bitcoin address is also active when a power outage is reduced by more than half in power before, Venezuela bitcoin address and 500 thousand active power, after the events of March 10th only 200 thousand.

 My country power off the network bank failures, fortunately in bitcoin

But this situation bitcoin transactions plunged soon recovered. According to localbitcoin data show that bitcoin trading volume in the first week after Venezuela power dropped by about 40%, but in second weeks and returned to close to the level before the blackout.

 My country power off the network bank failures, fortunately in bitcoin

The reason for the Venezuelan bitcoin transaction level rise rapidly, not because of power recovery, but because no other people have better choice in addition to encryption currency. According to BBC reports, because most people can not enter Venezuela beyond the financial world, unable to free the dollar or any other currency, also cannot obtain the global banking services, so bitcoin becomes necessary.

The people here did not allow them to transfer foreign accounts in dollars, the government also has strict regulation on national accounts. Any deal worth around $50 and above, will lead to the freezing of bank accounts, until you can clearly explain the source of funds.

At present, many Venezuelans to freedom of occupation in the world within the scope of the identity, get bitcoin payment of wages, and their remittances home. Bitcoin can maximize people full control of their own money, no bank or third-party, no high fees.

Bitcoin has been value storage means

Some statistics from last August to March this year, Venezuela bought a cup of coffee to Venezuela “Bolivar”, in 8 months or so, up 112 times.

Venezuela’s blackout crisis left the people “like living in a doomsday disaster”. More than three million of Venezuelans have to leave their homes because of the clean water, toilet paper, medicine, food and other necessities because inflation has become unbearable.

 My country power off the network bank failures, fortunately in bitcoin

It is not difficult to understand why the Venezuelan bitcoin transactions since 2016 has been on the rise, the country in March for a week Localbitcoin transactions of about $8 million, while in Europe only a $4 million deal. Many past experience also confirms that, when a country’s economic problems, the dollar or gold under control, the people of this country might first try to use bitcoin to hedge assets.

There is no doubt that in some countries special social breakdown and monetary spamming, bitcoin has more advantages than legal tender. But in the global scope, about whether bitcoin is a universal value storage means is still debated.

“Bitcoin created since the beginning of the price volatility. As an asset, it can provide users with stability, or not as a store of value, and this is the operation of any currency (functioning currency) key elements should have. “This is a lot of mainstream economists questioned whether bitcoin as a store of value reason.

About bitcoin price volatility is too large, even accused it of “roller coaster” price is completely right, look at the history of its price is also true.

But some bitcoin value beliefs that become a stable store of value, does not mean that the money required to maintain the same value level for a long time, just make sure the money value is not reduced to zero. Whether bitcoin is worth $10, or $100, or $10000, its stability as a store of value, will not disappear.

If bitcoin is not zero, it is valuable. This is not far fetched, then a bundle of jinyuanquan and Germany Mark had entered the history of dust, but today there are still a certain value to the collection, or at least the value of a piece of paper.

The sources of value are generally accepted bitcoin, bitcoin is the first block chain project, there are a considerable number of users and investors, maintain a limited number of rare, low transaction cost and transfer of anti censorship. But the biggest source of bitcoin value or bitcoin market participants on the consensus (this consensus, most people don’t need to admit it, there are a lot of people admit it).

When more and more people believe that bitcoin is valuable, and believe bitcoin will achieve global currency status, believe it can be a better alternative to the traditional legal tender issued by a government, it is valuable, even if unable to become a global currency, but also the probability of becoming a digital gold. This consensus is high, the heat is higher, thus market value is also higher.

Even if the destruction of earth, bitcoin is still

To start the ultimate question, bitcoin will die out?

The nationwide power off the network, just let the Venezuelan bitcoin transaction amount, transaction volume, active address experienced a sharp decline, but soon recovered back.

Because bitcoin is a digital currency, on the Internet, but not to the internet. To access the bitcoin network, you need an electronic equipment, as long as you can open the power supply equipment, the equipment will be of no great importance. Through the satellite connection to access the bitcoin network can solve the problem of disconnection due to power failure.

One potential solution in power interruption may be the actual exchange of paper with the actual coin purse or private key. Then, as long as the town or village there is an electronic device, you can verify the coins or wallet.

Then we assume the worst case, such as the global nuclear war or super natural disaster damage, broken network, power and storage hardware, mining machines appear in the global scope, how bitcoin network will maintain.

Different from the currency and gold have a physical entity, the central bank was destroyed in the extreme case, no entity bitcoin do not have to worry about the “single point of failure, as long as there is a node in the operation, the bitcoin network will continue to operate its network distributed all over the world, so the theory can not completely what destroy it.

The global bitcoin total number of nodes has been in a relatively stable state of 10000 or so, a lot of bitcoin all nodes even in the most serious nuclear attack can survive, not only because they are all over the world, but also because they can communicate with each other via satellite internet.

 My country power off the network bank failures, fortunately in bitcoin

The Blockstream satellite has covered most parts of the world. To receive satellite communication only need to install a satellite antenna (satellite TV antenna), some cheap parts, and a computer. Any local coverage is located in one of the four Blockstream geostationary satellite in the bitcoin can receive the broadcast information, and completely free.

In addition the bitcoin network requires a computer operation to provide mining work force, and release of nuclear electromagnetic pulse (EMPs) can destroy almost all of the country’s computer. Therefore, extensive EMP attacks will stop bitcoin operation in the affected area, until the destruction of the computer can be replaced. Even if the whole world is affected, the bitcoin network will be frozen in the ledger of EMP before the attack, instead of being destroyed.

However, in extreme cases, people should be most worried about is his own bitcoin private key, because it is more likely to be destroyed. Recorded on paper or backup in CD / DVD / computer on the private key (mnemonic), can directly destroy the physical. In a word, all the physical destruction, but to the center of the bitcoin will be immortal.

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