How to understand and treat bitcoin

1. The development of bitcoin in China is relatively good, with a particularly strong momentum.

2. Throughout history, there have been cases of gold, goods and even land confiscation in times of crisis. It is also disturbing that, as we have seen in Venezuela, people there are struggling with high inflation. Sometimes it is extremely difficult to convert money into another currency, which makes people feel helpless and can only watch their life savings be worthless. Bitcoin is very different. It is in electronic form and has no boundary restrictions. It can be transferred without any intermediary. Anyone who connects to a mobile device or the Internet can use it. All transactions are permanently recorded in the public ledger, and there is no dispute about ownership
in a recent article in the New York Times, a Venezuelan economist described how bitcoin became a part of Venezuela's daily life, so that on a mainstream bitcoin trading platform, Venezuela's trading volume ranked second only to Russia in the world. But bitcoin is not just used to protect wealth in extreme conditions. In general, bitcoin is also an excellent choice for portfolio diversification, and it should be seen as part of a comprehensive wealth preservation strategy.

3. Go to bitcoin news network to see more bitcoin news, as well as market and technology
the birth of bitcoin
the birth of bitcoin should be on November 1, 2008. A man with the pseudonym of "Nakamoto Tsung" published a paper on the Internet. In this paper, he described in detail a new monetary system, which he named "bitcoin"

then, on January 3 of the next year, the first bitcoin program was born in the hands of Nakamoto Tsung, along with the first 50 bitcoins from mining. After that, he began to fade out until he disappeared completely

so far, people have not found out the real identity of this person, even if today's operators, Internet giants and the government have firmly grasped people's behavior on the Internet

he often switches between American and British English when he speaks. He goes online at different times of the day at random to hide his nationality and time zone; He hides his IP address, encrypts his email, and deliberately forges some writing and speaking styles to confuse the public; Besides, he is also an expert in cryptography. By the way, the place where he published his paper is called & quot; Cryptography mailing list & quot

so bitcoin was born with a hacker spirit: against the censorship imposed by any force

of course, we can also see that if a hacker who invented the anonymous currency system can't be anonymous, the whole thing will become a joke< But fortunately, Nakamoto didn't let us down

1. What is currency
I find that I can't run this section in any case to clarify what is bitcoin. I am not an expert in the field of economics. I can only talk about this issue in a very superficial and intuitive sense However, as far as the theme expressed in the title is concerned, it seems to be enough)

it has been mentioned in senior high school textbooks (remember?), Money is the medium to store value. If a thing wants to become money, it must meet the following requirements:

1) scarcity

that's why gold can be used and sand can't be used as money. Scarcity can be understood as the difficulty of obtaining it. The more scarce it is, the more difficult it is to obtain it. An intuitive understanding is as follows: assuming that your monthly salary is 5000 yuan, it means that the scarcity of RMB is just such a degree, that is, you have to pay a month's labor to get 5000 yuan. You won't agree to pay your salary with 5000 grains of sand, because instead of working for a month to get it, you can easily get it by walking around the beach

how does the current financial system guarantee the scarcity of money? Control distribution. The issue of money is firmly in the hands of the central bank, so that the amount of money can be controlled (so you now know that it is illegal to print money without permission). Back to the example just now, you agree to pay you a month's salary with 5000 yuan because the circulation of RMB has just reached this level. If the circulation of RMB doubles and the scarcity decreases, you should ask for 10000 yuan to pay your salary (but the response of the market is often not so fast. During this period, your wealth is actually deprived - your labor should have received 10000 yuan, but only 5000 yuan in return)

2) transactional

of course, the purpose of currency is to trade. As many people tell you, money is spent, not brought into the coffin. So in addition to meeting scarcity, the more convenient it is for a thing to trade, the more it meets the standard of ideal currency. Therefore, in the history of currency, silver dollar has replaced shells, paper money has replaced silver dollar, and digital currency is graally replacing paper money

the "transaction" here refers to the transfer of property from one party to the other, that is, the decrease of one party's property and the corresponding increase of the other party. For physical currency, it happens very naturally. A wants to give 100 yuan to B. when the 100 yuan note is transferred from a's hand to B's hand, the transaction is completed. A's property is reced by 100 yuan and B's property is increased by 100 yuan. There is no third party involved in this process, which is completely a private act between a and B; However, when the transaction takes place at the level of digital currency, it is not so simple. Party A has to give 100 yuan to Party B. how can we ensure that the transaction is completed? Suppose that a and B record their wealth on their respective computers, how can we ensure that when B adds 100 yuan to them, a actually subtracts 100 yuan from them? Now we have to bring in a third party - the guy we call the bank. When a wants to transfer 100 yuan to B, he doesn't directly give it to B, but to the bank, "please transfer my 100 yuan to B", so the bank dected 100 yuan from a's account and added 100 yuan to B's account Let's assume that it generously does not charge any transaction fee)

the above is a rough model of modern monetary system. The biggest disadvantage of this model is that people have to trust a central system

the transaction of digital currency must rely on the bank, and a person's bank account number may be censored, restricted or even deprived. When one party wants to transfer his wealth to the other party, the bank can charge a high fee or refuse directly (for example, you try to remit a sum of money to a relative in the United States)

the issuance of money must rely on the central bank. Well, it's a well-known secret: the currency has been devaluing, or over issuing (think of the $100 20 years ago and the $100 now). I quote two paragraphs, one of which is Keynes's saying, "through a continuous process of inflation, the government can confiscate a part of citizens' wealth secretly and unknowingly. In this way, we can deprive the people of their wealth at will, while making the majority poor, we can make the minority rich, Another paragraph, from Hayek, "the government can not restrain the impulse to issue money indiscriminately."

is it possible to design a monetary system in which we do not need a central institution and are not forced to trust any third party, so as to make the issuance of currency transparent and controllable, and the transaction of currency private and secure

guess what

2. What is bitcoin
so we can now answer that bitcoin is an e-money system with decentralized distribution and transaction. In this system, the circulation of money is transparent and predictable, and the transaction of money uses the cooperation of the whole network to ensure the security of the transaction

next, I will graally dismantle the principle of bitcoin. It should be noted that bitcoin, as a proct already in use, has a lot of details. The purpose of this article is to explain the basic principles of bitcoin to readers without technical background, so these details will not be covered. For example, the address of the wallet is not the public key, but the second hash value of the public key; The difficulty requirement of blockchain is not to hash all the contents of blockchain once; wait. But for the sake of brevity, without affecting the explanation of the basic principles, these are simplified. I hope you can understand them

2.0. Bitcoin network is composed of many nodes running bitcoin programs
bitcoin is a network composed of many equal nodes

a node is a bitcoin program. Any machine that can connect to the Internet and have certain computing power can run this program - so your home computer can also be used as a node in the bitcoin network:)

nodes can communicate with each other. At the same time, bitcoin has a set of mechanism that allows a node to send messages to all other nodes, This behavior is called "broadcasting."

2.1. Blockchain - a public account book
let's go back to the example of banks. The most basic function of a bank is to maintain an account book, which only needs to record every transaction truthfully. For example, Wang Xiaoming transferred 30 yuan to Zhang Damao on X, year X; On y, y, y, y, Zhang Da Mao transferred 12 yuan to Li Xiao Dou, and so on. According to this account book, we can find all the transaction records of a person, so we can calculate the current account balance of the person. For example, since Li Xiaodou started to build a bank account, the total amount of transactions transferred in is 500 yuan, and the total amount of transactions transferred out is 300 yuan. Then it can be calculated that the balance of Li Xiaodou's account must be 200 yuan at this time

maintain this account book, and as the only maintainer (only the bank has the right to view and modify), the bank's responsibility as a trading center is completed

bitcoin also has an account book, but unlike banks, this account book is open and anyone can view and review it

this account book is called & quot; Blockchain & quot;. You can think of blockchain as a pamphlet. Every page of the pamphlet is full of transaction information, and new pages are constantly added<

2.2 Wallet - an account composed of a pair of public keys and private keys
the above section explains what a bitcoin account book is. This section will explain the ownership of funds in this account book, that is, the account system of bitcoin

there are essential differences between accounts in bitcoin and bank accounts

under a bank account, the bank records the identity information of the owner of the account (think back to the information you submitted when you went to the bank to open an account: photo, ID card, telephone number, home address...), so as long as you can prove your identity to the bank, you will get the ownership of the property under your name. In this model, the bank plays the role of an omniscient God: he knows the wealth information of real people. We have no choice but to pray to God not to let our information out or use it for evil

in the world of bitcoin, there is no such institution as bank, which will not force people to reveal their identities in exchange for the security of funds. Bitcoin's account is simply composed of two strings of numbers, which are called "public key" and "private key" respectively, and there is nothing else

the mathematical characteristics of these two numbers - a data encrypted by a private key can only be decrypted by a public key, so-called asymmetric encryption - enable them to perfectly implement the functions required by an account (called a wallet in the bitcoin world)

we take the public key as the account address - also known as the wallet address in the bitcoin world - which is similar to the account number in the banking system, that is, when you tell someone "please call 300 yuan for my account number", you need to tell them. For the bank, it is "China Merchants Bank 6214850200251100", compared with the special currency, it is "

the private key is the * only * certificate to prove the ownership of the wallet. You can hold it by proving that you are the private key of the wallet

4. Are you really poor enough? Which district? Let's see if we're going alone. If we're in, I can help you

5. Born in Haijiao village, you have to make a boat to Luoxia island. Born in Luoxia Island, you can directly ask the old man to take you. But don't worry. It's hoe and ngeon flying. Don't dig the mine and get lost

6.

First of all, we need to understand what bitcoin is. As we all know, bitcoin did not become a trading currency many years ago. A long time ago, after bitcoin sold pizzas, some people began to identify with bitcoin, and then bitcoin became valuable. Although bitcoin did not have any government endorsement, its value was that people thought it could be used as an exchange currency, Especially from the blockchain, more and more people understand that the underlying architecture of bitcoin is built on the blockchain, and Nakamoto himself has never been exposed, but people recognize that the total number of bitcoin is 21 million

well, after we know about bitcoin, we'll come back to see why our China investment bank and tycoons blow bitcoin to the sky:

7.

We will pay close attention to the instry value points, constantly screen, refine and optimize, and provide the most needed, useful and important content for community players Fenghuolun blockchain

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it's time for all instries to write their year-end summary again, but the year-end summary of the currency circle may be as follows:

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to be honest, when bit30000 soft coins, Xiaobian has already felt beyond imagination, not to mention now the price is not dare to see. As soon as the price comes up, although the dispute is still very big, more and more people pay attention to it. For example, the following question on Zhihu has been followed by more than 1000 people and browsed more than 500000 times

What do you think of this question? When and how did you know about bitcoin

there are all kinds of discussions at the bottom of this post. Although a good study and work does not affect the holding of bitcoin, Xiaobian, from his own point of view, did not know bitcoin at that time because he did not do his job properly

however, this question may also be a false proposition, such as the following answer:

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it would be nice if the" poor people "who used to get twice as much. Unless they really inlge in work and forget it, there are too few people who can insist on getting the present, And the person who can really get the present, maybe he is not short of money, otherwise he will exchange bitcoin for other things for various reasons

do your relatives and friends know about bitcoin? Do you have any friends who have taken it for several years

however, this post may have overlooked one thing, that is, it may be easier to rely on counterfeit money for financial freedom. About a year and a half ago, bit3000 was about 40 times as much as now. However, at that time, the number two Wright was just over 20, which has increased by 70 or 80 times. What's more, such as quantum chain, crowdfunding in March this year has increased 170 times

who do you want to argue with

so it's true that every time the market is good, all kinds of crowdfunding will be crazy, and new projects will always give people a lot of imagination

a lot of big currencies like bitether, including the top currencies in market value, have experienced the test and precipitation of time; And new or small currencies, although they have strong explosive power, have a strong speculative atmosphere. When the tide goes down, you can see who is swimming naked. This is also the reason why many old players stay in the mainstream currency

recently, the mad cow is on the way, and each group is quite busy, but Xiaobian is still here to remind you, pay more attention to risks, eat and sleep on time, and hope that everyone can go to the peak of life

so do you think it would be better to hold bitcoin or counterfeit coins? Or what do you think of those who rely on bitcoin for financial freedom? Welcome to leave a message below~

8.

1、 As for how to view the big rise of bitcoin, in my opinion, the reason for the big rise of bitcoin is that many people have made high profits in the previous big rise of bitcoin. So this time, these people will encourage many people to hype bitcoin, and they will encourage many people to hype bitcoin, It's because once a lot of people hype bitcoin, bitcoin will become more and more popular, and they can continue to earn high profits{ RRRRR}

4. So, even if bitcoin soars, we will enter the market of hyping bitcoin. Let's not inlge in hype. Don't be too greedy in bitcoin. After earning certain benefits, we can stop it directly. If it is too greedy, we will lose all our money in the end. So, the reason why bitcoin soars so fast is that, It's because there are people behind these retail investors who are pushing the rise of bitcoin. These people want to use bitcoin to earn high profits, which will push the rise of bitcoin. There are also some retail investors who want to earn high profits. Once the value of bitcoin drops, they will lose all their money

9.

Let's suppose a scene - a class in a school. In order to motivate students, teacher a Cong will reward students with good performance and progress with little red flowers. These little red flowers can be exchanged for comic books, novels or beautiful stationery in the class bookshelves. This move is very popular with students, slowly some transactions between students, also began to use little safflower as a trading medium. For example, if Xiaoqiang wants to borrow my Naruto, he has to pay little safflower to me, and the little safflower I get can go to the bookshelf of the class to rent my favorite novels. In this way, the little red flower became the currency of our class

for example, if I want to rent Xiaoxue's novels, I need to pay Xiaoxue a little safflower. I recorded the transaction in my account book, and then passed the payment list to the students around. The students who received my list recorded the transaction, and then passed it to the students around them until the whole class recorded the transaction. In this way, it is very difficult for someone to modify the account book secretly. He must check the account book with the whole class. Only the vast majority (more than half) of the students' accounts can be matched with you (maybe some students have a wrong account), can the transaction be recognized. At the same time, it also aroused the enthusiasm of the students to calculate the accounts, because the students who calculated the first time were rewarded

ha ha, in real life, there won't be such abnormal classes and teachers, so I won't continue to expand