No, Bitcoin recently broke through the $32,000 mark, with an increase of more than130,000 times, with an increase of 72.99% in the past month.
However, many people actually don't know Bitcoin, and their understanding of it is limited to knowing that it is a virtual currency. They also know about Bitcoin because of the news about its soaring price.
How did Bitcoin come from?
Let's start with a Japanese-American named Satoshi Nakamoto. In 2008, Satoshi Nakamoto published a paper describing Bitcoin and its algorithm for the first time. In 2009, he released the first bitcoin software, and Bitcoin was officially launched.
The biggest difference between Bitcoin and other virtual currencies is that its quantity is limited, with an upper limit of 2 1 10,000, which is generated by a computer according to a certain algorithm. This process of generating bitcoin through algorithms is commonly known as "mining".
The so-called "mining" is actually a complex algorithm calculation of the bitcoin system with a computer, and the bitcoin system rewards a certain amount of bitcoin to those who get the answer.
According to the difficulty of bitcoin algorithm, the whole network system will get the answer every 10 minute.
For example, several people get together to play with a box, which contains several bitcoins. This box needs to be broken open. After each box is opened, the bitcoin in the box belongs to the person who opened the box.
Then send a new box to everyone, and then everyone will continue to crack the password of the box repeatedly to get a reward.
In 2009, cracking the password of this "box" won the grand prize of 50 bitcoin.
When taking out1050000 (half of 2100000) bitcoins from multiple boxes, each box will be opened next, and the number of bitcoins will be rewarded by half, that is, 25 bitcoins.
When another 5.25 million bitcoins (half of1050,000) are taken out, the reward will be halved to 12.5 again.
Therefore, there will be fewer and fewer bitcoin rewards for "mining" later. With the development of bitcoin, the competition of mining equipment is becoming more and more fierce, and the difficulty of obtaining bitcoin is also increasing. It takes a computer with very high computing power to barely dig up a certain amount of bitcoin.
In fact, every time you get a bitcoin reward for mining, you will also get the corresponding trading reward. This transaction reward is the transaction cost spent by the entire bitcoin network in the past 10 minutes, but this reward is very small and almost negligible.
However, as Bitcoin becomes more and more popular, the frequency of transactions is getting higher and higher, and the transaction fee is gradually increasing. I wonder how much it will increase in the future.
In 20 10, digging bitcoin was just a small game for some IT practitioners. In May of that year, an IT man posted that he had 10000 bitcoins and wanted to exchange them for $25 worth of pizza. Soon, the deal was won by a European aged 19. This 10000 bitcoin is $320 million today.
The myth of soaring bitcoin prices has been continuing, and many people want to realize asset appreciation by investing in bitcoin.
Here, I would like to advise that Bitcoin is not controlled by any financial institution, and there may be big price fluctuations at any time. At present, the price of bitcoin is rising partly because of the worsening epidemic situation and the risk of devaluation of traditional currencies in some countries due to the impact of overshoot. Part of the reason is institutional speculation. Retail investors should be careful not to be leeks. Not long ago, there was a news report that someone jumped into the river because of the loss of speculating bitcoin.
Nowadays, Bitcoin has entered people's field of vision more and more frequently, and some economists are even studying whether it can replace traditional currency, because compared with traditional currency, its total amount is fixed at 2 1 100 million, which can effectively curb inflation. However, some economists believe that it is precisely because of its fixed total amount that it lacks overall controllability of the economy.
In any case, bitcoin has been recognized by many people, and some websites have even begun to accept bitcoin transactions. The development of Bitcoin has entered a "fuzzy period". We should have a new vision and a cautious attitude towards Bitcoin.