What is Bitcoin? Is Bitcoin a lie? You don't even know bitcoin. You are too behind the times. Let me teach you a good lesson. Bitcoin is actually a virtual currency, but it is a decentralized monetary system, which means that it is not like other currencies or virtual currencies. There is a central issuer, for example, the US dollar is controlled by the Federal Reserve, the RMB is controlled by the People's Bank of China, and QQ coins are controlled by all bitcoin users. There is no central organization, and servers and systems are all over the nodes of Internet clients, thus ensuring the fairness, reliability and security of currency issuance, management and circulation, and avoiding inflation and currency counterfeiting.

On Jun.365438+1Oct.365438+1Oct.2008, a self-proclaimed Satoshi Nakamoto published a paper on the Internet, Bitcoin, a peer-to-peer electronic cash system. 10 days later, a project named Bitcoin appeared in forage.net, the largest open source website in the world. On June 3, 2009, the world's first bitcoin was born. On August 19, 2065438, Germany took the lead in recognizing the legal status of Bitcoin, and the government recognized the legal tender status of Bitcoin on August 19, becoming the first country in the world to recognize Bitcoin through legislation.

Simply put, bitcoin is actually a string of numbers based on cryptography. However, due to its many characteristics, it has the conditions to become a currency, even better than the monetary system of gold and credit in many aspects. Ou Rong, how can you get bitcoin? The production of bitcoin is similar to that of gold, and you need to get a card. It's just that gold mining is dug from underground gold mines, while bitcoin is dug from an open and specific algorithm based on the Internet, which is a machine that digs into underground gold mines. We call it a mining machine. Similarly, we need to configure a system to run a bitcoin mining algorithm to obtain bitcoin. We also call this system a digger to dig people who produce bitcoin. We call it a miner, and everyone can become a miner, so there is no central issue taboo. The original bitcoin mining machine is actually an ordinary computer we use, and we only need to execute a specific set of algorithms. However, with the increase of miners, and the total output of bitcoin is limited by algorithms, it is more and more difficult to mine bitcoin, so it is unrealistic to use the CPU of ordinary computers for mining. After that, everyone used faster graphics cards and stopped digging. Later, more professional companies and teams specially designed special chips for Bitcoin Zhanhuaju algorithm, and assembled them into professional mining machines. Because many investors don't want to delve into the specific technology of bitcoin mining machines, they want to invest in mining machines, so they have produced services such as mining machine custody. I'm using cloud mining machine technology now. There is a professional company to help me manage and maintain the mining machine network. I just need to collect coins. It's been a long time. What can Bitcoin do?

When it comes to the application of bitcoin, it is now very extensive. In the Internet world, it has become the most recognized virtual currency in the world. For example, my press, The Pirate Bay, Reddit and other well-known blogs, music, movies, book software and social networking sites have all opened bitcoin payment platforms, and more and more businesses have started to support bitcoin payment online. 20 12 10, bitch pay, a company providing payment solutions for Bitcoin, released a report saying that more than 1000 merchants have accepted payment from Bitcoin through its payment system. From the barbecue in new york to the Howard Johnson Hotel in California, from the fullerton Convention Center to the wedding in Oklahoma, there are more and more vendors accepting bitcoin payment in cake shops. So far, no more than 8,000 vendors have signed contracts with beat. In Europe, the dental chain participating in funeral service companies began to use bitcoin for payment, and brands such as Sarah Forever and Dig Source can also be purchased with bitcoin.

At present, you can buy more than 500,000 kinds of goods from many enterprises in 98 countries through Bitcoin. In addition, bitcoin has even begun to impact the real estate market. Someone bought a Porsche sports car with bitcoin, and bitcoin cash machines appeared on the streets of Cyprus. Oh, I didn't expect Bitcoin to be so popular. In addition to trading with Bitcoin, Bitcoin itself has become a new investment product. At the beginning of 20/2009 -20 10/0, bitcoin was worthless, and in the following six months, the value of a bitcoin was less than ten times per minute. In the summer of 20 10, the sudden tightening of supply led to an increase in demand, and the online transaction price of bitcoin began to rise to 165438+ a bitcoin rose to 36 cents at the beginning of 10. In February of 20 1 1, the value of bitcoin rose even more. Slash store, the general consulting website, once reported that Bitcoin rose to the level equivalent to the dollar. In the spring of 20 1 1, Tugus, a famous American financial magazine, reported bitcoin, and its value soared. From the beginning of April to the end of May, it rose from 86 cents to $8.89, and then to $29.57, with an appreciation of 34 times in half a year. The market value of all bitcoins in circulation reached $6,543.80 billion. Today, Bitcoin has been around for 12 years, and its value has soared to $20,000 each, which has increased by a million times. It is even called electronic gold, and the value of the entire bitcoin trading market has exceeded one trillion dollars. From the program just now, we saw the crazy market of Bitcoin. We can donate money to buy things in bitcoin, and some merchants accept bitcoin payment.

This is the most basic definition of money. With the continuous development of society, the credit currency legal tender issued by governments of various countries, which is also commonly known as the instruction, has finally entered the historical stage and has continued to this day. At present, there are more than 200 national or regional currencies in the world. Because the law itself has no value, it is only guaranteed by the exchange medium of government credit, and the government can control its issuance at will. The introduction of legal tender has brought people economic prosperity and trade freedom, but it has also brought a lot of confusion to mankind. But now the hot wine of money and capital has become a social worry.

In 2008, a financial crisis originated from Wall Street in the United States swept the world and lasted for four years. This crisis triggered the debt crisis of Shu in Europe. Qingtian, Greece, Italy, Spain, Portugal and other European countries have not seen the lens of drones, and the whole of Europe is trying its best to tide over the crisis. From the end of the last century to the present, a large number of global financial crises have broken out in just over a decade, including the Asian financial crisis of 1997, the Latin American sovereign debt crisis of 200 1, the subprime mortgage crisis of the United States in 2008 and the European war crisis in the euro zone in 2009. The crisis of China People's Political Consultative Conference (CPPCC) is interrelated and influenced each other, and its root cause is a complicated result. Ironically, when the government accepts these currency-induced crises, it usually puts more money into the market. After the financial crisis broke out, the US government announced that it would pay attention to the capital market of 700 billion US dollars. The European Central Bank, the British and Swiss central banks will inject 90 billion US dollars into the financial system, and the Japanese government will implant 8 trillion yen into the financial market. Although this can temporarily save the crisis, it will lead to another more deadly crisis, inflation.

Excessive currency issuance is inflation, which is actually an unreasonable tax, and the right to issue money is in the hands of the government, so inflation is almost an inevitable result. In 2009, Zimbabwe issued banknotes with a face value of 100 trillion yuan. In recent years, more than 50% of Zimbabwe's fiscal revenue comes from issuing currency, which leads to hyperinflation in Zimbabwe. There has only been great inflation in history, which is the result of the national central bank's excessive currency issuance. At the beginning of the 20th century, the inflation in Weimar Republic of Germany not only led to the decline of a country, but also led to the outbreak of World War II. In the late 20th century, inflation in South American countries destroyed the achievements of economic development in these countries for decades, and it has not been able to get out of the trap of advanced downturn. In fact, although all governments are promoting their own legal tender, each country has not given up the reserve of gold, which means that the issuers of money do not have enough confidence in themselves, so that gold has not withdrawn from the historical stage. Governments are scrambling to reserve gold, and people have always lacked enough sense of security in the issuance and use of credit currency. In recent years, many Internet-based virtual currencies have emerged. In fact, these virtual currencies are very similar to legal tender issued by the state, and they are also issued by the central government. Just because the issuer is only a company, it is impossible to have the credit of the state, and it is impossible for the state to grant a company the right to issue money, so these virtual currencies can generally only be used within the company or within the scope of services provided by the company.

Due to the comprehensive consideration of the characteristics of the current monetary system and the advantages of gold, as well as the large demand for virtual network transactions, Bitcoin was born. What is it that makes her so sought after? Let's analyze it carefully. With decentralization, Bitcoin is a distributed virtual currency. The whole network is formed by users themselves. There is no central organization and no central server. Are based on peer-to-peer design. In other words, every user is equal and is one of the components of the Bitcoin system. This feature ensures that Bitcoin is safer than any current currency, because it will not go bankrupt or fail, only the central institutions and the future will go bankrupt, while other currencies depend on the central bank. If the central bank goes bankrupt or loses money,

Al doesn't need a third party. In today's society, most of our money is in the bank. Our transaction payment in trade activities is actually based on trust in banks. We transfer money from one account to another, all in the bank system. If the bank goes bankrupt, the money will evaporate, and Bitcoin won't need the bank to help us trade. We only need to fill in the other party's bitcoin wallet code in the bitcoin wallet software, and then we can directly transfer bitcoin to the other party's wallet to obtain exclusive ownership. As long as you have your own secret kiln, your bitcoin will always belong to you, and no one else can steal it. This is based on the fact that cryptography cannot be cracked, and there is no need to deposit funds in a third party, such as a bank, because the credibility of the third party is higher than that of the negative electrode, thus completely avoiding inflation. Because there is no central organization, no one will manipulate the number of issues. In addition, the total number of bitcoins has been fixed by the algorithm itself, so there will never be inflation in bitcoin. Fifth, it is more suitable than gold to be a new game to protect bitcoin, because gold is very similar, but if it is used as currency, bitcoin is easier to carry and divide. If necessary, each bitcoin can be cut into eight times of ten, and Fang Ge is safer and can be traded remotely, which is impossible. 6. Free global circulation does not occupy national and exchange rate barriers. As long as there is an Internet, Bitcoin can be used equally. The transaction cost is low because there is no center, although the maintenance and transaction cost is lower. Recognition, as a currency, must be recognized by everyone, otherwise it will not be a currency for trading. From the birth of Bitcoin to the present, people's recognition of it is getting higher and higher.

The recognition of the common currency comes from people's trust in the national government, but history tells us that on the issue of inflation, the government will never find an absolute circumvention plan, and Bitcoin does not need people's trust in others, because there is no central organization, but it is composed of every user. Therefore, trusting Bitcoin means trusting people themselves, and human recognition of themselves is always the highest.

Of course, as a new thing, Bitcoin still needs to be improved, such as its anonymity, how to control whether it can be coordinated with Japanese government taxes, how to enhance liquidity, and how to control investment behavior. But who can say that there is nothing wrong with the current monetary system and it needs to be improved? History is always strikingly similar. In the history of monetary division of labor and financial development, when an innovation appears, whether it has a positive or negative impact on society, it will lead to the redistribution of wealth and create a group of rich people. The joint-stock system first invented by the Netherlands made the East India Company brilliant for a period of time, and the rise of the banking industry created the Medici bank family in Bowen, Italy. The control over the issuance of national debt and currency made the Rothschild family, which almost monopolized the world, look special and completely subverted people's understanding of currency. Will she also bring about great financial changes, or create a new field to live in harmony with the current monetary system? In any case, Bitcoin has been growing since the fourth grade, and it is actually creating a lot of wealth with the pioneers involved. Let's take a look at how Bitcoin creates wealth for people.

Tencent Technology reported on June 25 that all doubts from outside did not stop parents and bitcoin players from continuing to flood into the market. In China, bitcoin trading and investment, mining chip production, mining machine production, mining enterprise assembly and even custody services are bringing out a new virtual currency industry chain and becoming the center of global bitcoin production. From the above report, we can see that the entire industrial chain of Bitcoin includes trading, investment, mining, chip production, mining machine production, mining machine assembly, custody service, etc. These industries make many people profit from it. First of all, looking at the transaction and investment of Bitcoin, we can clearly see that from the initial 65,438+00,000 pieces of Bitcoin to two wholesale pieces, and then to the peak market value of $20,000, the value of Bitcoin has increased by hundreds of millions of times.

Most emerging industries will have an early outbreak, and violence is the same as crisis. Someone has done this calculation. If bitcoin becomes a precise protective wall similar to gold in the online world in the future, according to the current global central bank 12 trillion US dollars of gold reserves, a bitcoin will be worth as much as 570,000 US dollars after 2040. Tencent Technology reported in July 15 that from 60,000 to 60 million, online writers feast to share myths with Kobe. At first, miners would get a lot of money through CPU and gas, and now they are almost all professional mining machines. Pumpkin dr. zhang, a computer major at Beihang University, designed a professional bitcoin mining machine named Avalon. According to a report in May and June, 5438, the mining machine can generate 357 bitcoins every day. According to the bitcoin price on July 2 of that year, 1 bitcoin is converted into 579 RMB, and the pumpkin bitcoin mining machine can pay 200,000 RMB a day. Although pumpkin can generate such amazing profits, Zhang is still at ease. Pumpkin sheets were used in the delivery of bitcoin mining machines, and the overlord clause was written on them. Even so unreasonable, pumpkin Zhang received more than 300,000 chips in the same year, worth hundreds of millions of yuan. Of course, the uncontrollable output can't be so high at present, but the market price is still as high as 200,000-300,000. One of the most famous mining companies in the world, as well as the American Butterfly Laboratory and the emerging Honeycomb Studio. At present, the purchase of Hongdie mining machine also needs to be booked, and there is no accurate delivery time process. Many users have already made payment appointments in April this year, but they still haven't arrived in July. Honeycomb Studio uses Google Cloud Services to bind professional chips to design the most advanced cloud mining machine at present. At present, the crowdfunding model is adopted to expand the scale.

In addition, many venture capital funds and startups are constantly entering the bitcoin mining industry, which is the embodiment of the spirit of freedom and equality of bitcoin decentralization. The future of Bitcoin Some people say that Bitcoin has no real value, nor does it say that it is a trust system, or that other virtual currencies may drop out of school, which will make Bitcoin worthless. However, all existing currencies, whether dollars, pounds or euros, are just a piece of paper. Their source of value is not themselves, but the value embodied by the credit of the national government. The essence of money is credit. As long as it can be recognized and trusted by people, it has value and can be turned into money. Other technical details can be improved and modified, but credit is the basis of everything. We have seen that Bitcoin has been recognized and trusted by more and more people from its birth to the present, no matter how its value fluctuates. In this crowd, bitcoin has become a monetary value. Only the central organization will not go bankrupt because of inflation. People trust themselves, so the snowball of trust will surely roll bigger and bigger, and the expansion of the trust scope of the deceased and special efforts will surely become the currency of the world. There is no need to worry about the emergence of other virtual currencies, because Bitcoin can become a currency, not because of technology, but because of credit. Once bitcoin gains the credit of users all over the world, it will not lose credit because of the emergence of other virtual currencies. On the contrary, emerging currencies should consider how to obtain credit, even if the credit obtained by the new currency can be saved in the credit of Bitcoin, there is no conflict.

Bitcoin, as a new thing, has gone from obscurity two years ago to today's gold rush. No matter how many twists and turns, angels have different views on him. He has always been born with freedom and equality, which has been recognized and accepted by more and more people. Let us look at and understand with an inclusive and open mind. Bitcoin is the beginning of a free currency, just like human society itself is coming step by step in constant attempts. As a bitcoin practitioner said, the current monetary system has brought prosperity to mankind after thousands of years, but it has also brought disasters again and again. Until now, we are still constantly improving the monetary system, and Bitcoin itself is a direction to improve the monetary system. Maybe it's not perfect, but at least it's getting perfect.

# Bitcoin [Chaohua] # # digital currency # # Ou Yi OKEx#