Bitcoin halved several times in four years
Publish: 2021-05-04 22:23:11
1. In order to understand the technical principle of bitcoin, we need to understand two important cryptographic techniques: hash code: it converts a long string into a fixed length string, and its conversion is irreversible, that is, it is impossible to guess the original string from hash code. Sha256 is mainly used in bitcoin protocol
public key system: corresponds to a public key and a private key, keeps the private key in the application and publishes the public key. When Party A transmits information to Party B, it can use Party A's private key to encrypt the information, and Party B can use Party A's public key to decrypt the information, so as to ensure that the third party cannot impersonate Party A to send the information; At the same time, when Party A transmits information to Party B, it is encrypted with Party B's public key and sent to Party B, and then Party B decrypts it with his own private key, so as to ensure that the third party cannot eavesdrop on the communication between the two people. RSA is the most common public key system, but the lliptic curve digital signature algorithm is used in bitcoin protocol. What's the difference between cash and bank account? Bitcoin is an electronic currency in BTC. In this article, it is also used to refer to the whole bitcoin system. Like opening an account in a bank, the corresponding concept in bitcoin is address. Everyone can have one or more bitcoin addresses, which are used to pay and collect money. Each address is a string that starts with 1. For example, I have two bitcoin accounts, and. A bitcoin account is uniquely determined by a pair of public key and private key. To save the account, you only need to save the private key file. Unlike bank accounts, banks keep all transaction records and maintain the book balance of each account, while bitcoin's transaction records are jointly maintained by the whole P2P network through a pre agreed protocol. How much money is in my account address? Although the current account balance can be seen by bitcoin software, unlike banks, there is no place to maintain the book balance of each address. It can only calculate the account balance in real time through all historical transactions. How do I pay? When I pay from address a to address B of the other party, the payment amount is e. at this time, both parties will announce the transaction information to each network node, telling address a to pay to address B, and the payment amount is e. In order to prevent the third party from forging the transaction information, the transaction information will be encrypted with the private key of address A. at this time, the network node receiving the transaction information can use the public key of address a to verify that the transaction information is indeed sent by address a. Of course, trading software will help us do these things, we just need to input the relevant parameters in the software. What will the network node do after receiving the transaction information? This is the most important part of the bitcoin system, which needs to be elaborated. For the sake of simplicity, only bitcoin protocol has been implemented. In the current version, each network node will save all transaction information synchronously. There are two kinds of transaction information in history, one is & quot; Verified & quot; The transaction information, that is, the verified transaction information, is stored in a series of "blocks". Each & quot; block" Is the previous & quot; bock" The ID of each block is the hash code of the hash code of the block and the new transaction information (see an actual block). The other category refers to those who also & quot; Unverified & quot; The transaction information just paid above belongs to this category. When a network node receives new unverified transaction information (possibly more than one), it can calculate the book balance of each address at that time because the node keeps all the transaction information in history, so it can calculate whether the transaction information is valid, that is, whether there is enough balance in the payment account. After eliminating the invalid transaction information, it first takes out the last & quot; block" Then, the unverified transaction information is combined with the ID, and a verification code is added to form a new "block". It needs a lot of calculation to build a new block, because it needs to calculate the verification code, so that the above combination becomes a block, that is, the first several bits of the hash code of the block are 1. At present, the first 13 bits need to be 1 (generally, the specific method is uncertain), which means that if the block is generated by enumeration method, the average number of enumerations is 16 ^ 13. Using CPU resources to generate a block is called "gold mining", because the proction of the block will get a certain reward, and the reward information has been included in the block. When a network node generates a new block, it will broadcast to other network nodes. However, this network block may not be accepted by the network, because it is possible that other network nodes have proced the block earlier. Only the earliest block or the block with the largest number of subsequent blocks is valid, and the remaining blocks are no longer used as the initial blocks of the next block. How does the other party confirm that the payment is successful? When the payment information is distributed to the network node, the network node begins to calculate whether the transaction is valid (that is, whether the account balance is enough to pay), and attempts to generate blocks containing the transaction information. When six blocks (one direct block and five subsequent blocks) contain the transaction information, the transaction information is considered "verified", so that the transaction is formally confirmed, and the other party can confirm the successful payment. A possible problem is that I will pay the balance of address a to address B, and at the same time pay to address C. If I only verify that the single comparison transaction is valid. At this point, my way of cheating is to generate six blocks including B to B and six blocks including C to C before the truth is revealed. Because I need a very long CPU time to generate a block, compared with the whole network, the probability of my cheating success is very small. What is the motivation of network nodes to proce blocks? As can be seen from the above description, in order to make the transaction information effective, the network node needs to generate 1 and 5 subsequent blocks to contain the transaction information, and such block generation is very CPU intensive. How to let other network nodes help to proce blocks as soon as possible? The answer is very simple. The agreement stipulates that BTC will be rewarded for the address where the block is proced, as well as the Commission promised by both parties. At present, the reward for procing a block is 50btc, which will be halved every four years in the future. For example, the reward will be 25btc from 2013 to 2016. Is the transaction anonymous? Yes, and No. All bitcoin transactions are visible. We can check all transaction records of each account, such as mine. But what's different from the banking monetary system is that everyone's account itself is anonymous, and everyone can open many accounts. In general, anonymity is not as good as it claims. But bitcoin has another advantage in doing black market trading: it can't be frozen. Even if the police trace a bitcoin address, there is nothing they can do unless they trace the computer used by the exchange based on the Internet address. How to ensure that bitcoin does not depreciate? Generally speaking, in the case of equivalent trading activities, the value of money is inversely proportional to the amount of money issued. Unlike the traditional money market, the central bank can determine the amount of money issued. Bitcoin does not have a central issuing institution. Only by procing blocks can we get a certain amount of BTC currency. Therefore, bitcoin's new amount of money depends on: 1. The speed of procing blocks: bitcoin's agreement stipulates that the difficulty of procing blocks is fixed at an average of 2016 every two weeks, about 10 minutes. Moore's law of doubling CPU speed every 18 months will not speed up the proction of block. 2. The number of rewards for block proction: at present, 50 BTC is awarded for each block proced, which is halved every four years. In 2013, 25 BTC is awarded, and in 2017, 12.5 BTC is awarded. Considering the above two factors, bitcoin's currency issuing speed is not controlled by any single node in the network. Its protocol makes the currency stock known in advance, and the maximum stock is only 21 million BTC
public key system: corresponds to a public key and a private key, keeps the private key in the application and publishes the public key. When Party A transmits information to Party B, it can use Party A's private key to encrypt the information, and Party B can use Party A's public key to decrypt the information, so as to ensure that the third party cannot impersonate Party A to send the information; At the same time, when Party A transmits information to Party B, it is encrypted with Party B's public key and sent to Party B, and then Party B decrypts it with his own private key, so as to ensure that the third party cannot eavesdrop on the communication between the two people. RSA is the most common public key system, but the lliptic curve digital signature algorithm is used in bitcoin protocol. What's the difference between cash and bank account? Bitcoin is an electronic currency in BTC. In this article, it is also used to refer to the whole bitcoin system. Like opening an account in a bank, the corresponding concept in bitcoin is address. Everyone can have one or more bitcoin addresses, which are used to pay and collect money. Each address is a string that starts with 1. For example, I have two bitcoin accounts, and. A bitcoin account is uniquely determined by a pair of public key and private key. To save the account, you only need to save the private key file. Unlike bank accounts, banks keep all transaction records and maintain the book balance of each account, while bitcoin's transaction records are jointly maintained by the whole P2P network through a pre agreed protocol. How much money is in my account address? Although the current account balance can be seen by bitcoin software, unlike banks, there is no place to maintain the book balance of each address. It can only calculate the account balance in real time through all historical transactions. How do I pay? When I pay from address a to address B of the other party, the payment amount is e. at this time, both parties will announce the transaction information to each network node, telling address a to pay to address B, and the payment amount is e. In order to prevent the third party from forging the transaction information, the transaction information will be encrypted with the private key of address A. at this time, the network node receiving the transaction information can use the public key of address a to verify that the transaction information is indeed sent by address a. Of course, trading software will help us do these things, we just need to input the relevant parameters in the software. What will the network node do after receiving the transaction information? This is the most important part of the bitcoin system, which needs to be elaborated. For the sake of simplicity, only bitcoin protocol has been implemented. In the current version, each network node will save all transaction information synchronously. There are two kinds of transaction information in history, one is & quot; Verified & quot; The transaction information, that is, the verified transaction information, is stored in a series of "blocks". Each & quot; block" Is the previous & quot; bock" The ID of each block is the hash code of the hash code of the block and the new transaction information (see an actual block). The other category refers to those who also & quot; Unverified & quot; The transaction information just paid above belongs to this category. When a network node receives new unverified transaction information (possibly more than one), it can calculate the book balance of each address at that time because the node keeps all the transaction information in history, so it can calculate whether the transaction information is valid, that is, whether there is enough balance in the payment account. After eliminating the invalid transaction information, it first takes out the last & quot; block" Then, the unverified transaction information is combined with the ID, and a verification code is added to form a new "block". It needs a lot of calculation to build a new block, because it needs to calculate the verification code, so that the above combination becomes a block, that is, the first several bits of the hash code of the block are 1. At present, the first 13 bits need to be 1 (generally, the specific method is uncertain), which means that if the block is generated by enumeration method, the average number of enumerations is 16 ^ 13. Using CPU resources to generate a block is called "gold mining", because the proction of the block will get a certain reward, and the reward information has been included in the block. When a network node generates a new block, it will broadcast to other network nodes. However, this network block may not be accepted by the network, because it is possible that other network nodes have proced the block earlier. Only the earliest block or the block with the largest number of subsequent blocks is valid, and the remaining blocks are no longer used as the initial blocks of the next block. How does the other party confirm that the payment is successful? When the payment information is distributed to the network node, the network node begins to calculate whether the transaction is valid (that is, whether the account balance is enough to pay), and attempts to generate blocks containing the transaction information. When six blocks (one direct block and five subsequent blocks) contain the transaction information, the transaction information is considered "verified", so that the transaction is formally confirmed, and the other party can confirm the successful payment. A possible problem is that I will pay the balance of address a to address B, and at the same time pay to address C. If I only verify that the single comparison transaction is valid. At this point, my way of cheating is to generate six blocks including B to B and six blocks including C to C before the truth is revealed. Because I need a very long CPU time to generate a block, compared with the whole network, the probability of my cheating success is very small. What is the motivation of network nodes to proce blocks? As can be seen from the above description, in order to make the transaction information effective, the network node needs to generate 1 and 5 subsequent blocks to contain the transaction information, and such block generation is very CPU intensive. How to let other network nodes help to proce blocks as soon as possible? The answer is very simple. The agreement stipulates that BTC will be rewarded for the address where the block is proced, as well as the Commission promised by both parties. At present, the reward for procing a block is 50btc, which will be halved every four years in the future. For example, the reward will be 25btc from 2013 to 2016. Is the transaction anonymous? Yes, and No. All bitcoin transactions are visible. We can check all transaction records of each account, such as mine. But what's different from the banking monetary system is that everyone's account itself is anonymous, and everyone can open many accounts. In general, anonymity is not as good as it claims. But bitcoin has another advantage in doing black market trading: it can't be frozen. Even if the police trace a bitcoin address, there is nothing they can do unless they trace the computer used by the exchange based on the Internet address. How to ensure that bitcoin does not depreciate? Generally speaking, in the case of equivalent trading activities, the value of money is inversely proportional to the amount of money issued. Unlike the traditional money market, the central bank can determine the amount of money issued. Bitcoin does not have a central issuing institution. Only by procing blocks can we get a certain amount of BTC currency. Therefore, bitcoin's new amount of money depends on: 1. The speed of procing blocks: bitcoin's agreement stipulates that the difficulty of procing blocks is fixed at an average of 2016 every two weeks, about 10 minutes. Moore's law of doubling CPU speed every 18 months will not speed up the proction of block. 2. The number of rewards for block proction: at present, 50 BTC is awarded for each block proced, which is halved every four years. In 2013, 25 BTC is awarded, and in 2017, 12.5 BTC is awarded. Considering the above two factors, bitcoin's currency issuing speed is not controlled by any single node in the network. Its protocol makes the currency stock known in advance, and the maximum stock is only 21 million BTC
2. Bitcoin halving is good for the price, but there is no definite time when the good will be reflected in the price. We all know that the price will rise, but when and where it will go, we are all guessing.
3.
2020 is the first year of digital currency proction rection. Most currencies will achieve the first proction rection this year, while bitcoin will usher in the third proction rection cycle. And the market is generally high on the halving market, it is expected that this year will usher in a wave of bull market, and the logic behind it is very clear. From the perspective of historical experience, this has already formed a more extensive "consensus" in the circle of cryptocurrency
secondly, bitcoin, known as "digital gold", is recognized by more and more funds for its risk aversion, which indirectly pushes up its price. At present, in addition to bitcoin, which has the most influence, BCH, BSV, etc, dash and other currencies are the most concerned. Dozens of counterfeit currencies have chosen to be halved in 2020. Therefore, 2020 is also known as the first year of halving
what is half bitcoin
bitcoin halving means that the reward for procing new blocks is halved about every four years. This means that after halving, the corresponding bitcoin reward for each block proced is only half of the reward before halving. At present, bitcoin has been halved twice, respectively in November 2012 and July 2016. The third half of bitcoin is expected to take place on May 13, 2020. By that time, bitcoin will be halved from 12.5 blocks to 6.25 blocks
half block reward means that it will take longer for all bitcoins to enter circulation, but it also means that mining will proce fewer and fewer new bitcoins. Moreover, e to its limited supply and increased mining difficulty, its scarcity attribute becomes more and more obvious, and scarcity will directly enhance the value. As the saying goes, scarcity is more expensive! For bitcoin, there is no doubt that this is a very big advantage
buying bitcoin in 2020 is better than buying bitcoin ETF fund
3, bitcoin current price 10000x4 = US $40000 (expected price after this year's proction rection)
in this period, the return comparison between holding spot and ETF fund is as follows:
1, buying spot holding, earning three times
2, buying ETF fund, Up to 15 times (intelligent position adjustment + fund compound interest calculation)
there is no doubt that bitcoin ETF launched by bitoffer is the best investment choice
4. First of all, the probability is not big, because after a period of time to reach more than 3000 points of test, and quickly rose to more than 7000, indicating that there are a lot of low price bottom
secondly, the current market sentiment is bullish, the rising trend is relatively good, and it is difficult to fall
thirdly, the good situation of national new infrastructure is difficult to fall
secondly, the current market sentiment is bullish, the rising trend is relatively good, and it is difficult to fall
thirdly, the good situation of national new infrastructure is difficult to fall
5. Judging from the trend, BTC needs a decent step back, because it has rebounded since the bottom of 3800 last time, and there is no trend of a second step back. Therefore, there are some hidden dangers in the short term, and it needs to withdraw again, maybe back to around 5000
of course, the next month will be the cycle of proction rection. After two months of proction rection, most of them will usher in the market. Therefore, if there is a short-term withdrawal, it will be a perfect low absorption point
it's better to buy bitcoin ETF fund than bitcoin in 2020< In theory, X2
3. The current price of bitcoin is 70000x4 = 28000 US dollars (the expected price after this year's proction rection)
ring this period, the return comparison between holding spot money and ETF fund is as follows:
1. Buy spot money to hold, earn 4 times
2. Buy ETF fund, earn 12 times, Up to 30 times (intelligent position adjustment + fund compound interest calculation)
there is no doubt that bitcoin ETF launched by bitoffer is the best investment choice!
of course, the next month will be the cycle of proction rection. After two months of proction rection, most of them will usher in the market. Therefore, if there is a short-term withdrawal, it will be a perfect low absorption point
it's better to buy bitcoin ETF fund than bitcoin in 2020< In theory, X2
3. The current price of bitcoin is 70000x4 = 28000 US dollars (the expected price after this year's proction rection)
ring this period, the return comparison between holding spot money and ETF fund is as follows:
1. Buy spot money to hold, earn 4 times
2. Buy ETF fund, earn 12 times, Up to 30 times (intelligent position adjustment + fund compound interest calculation)
there is no doubt that bitcoin ETF launched by bitoffer is the best investment choice!
6. In 2020, bitcoin will face the third proction rection in history, and it is expected to be halved on May 15, 2020. Starting from 2012, bitcoin proction will be reced every four years, which means that the number of bitcoins g out every 10 minutes will be reced by half every four years, and the reward of 12.5 bitcoin blocks every 10 minutes will be reced by half to 6.25 bitcoins
for ordinary investors, the most important thing is the price of bitcoin. Does the rection of bitcoin proction next year mean that the price of bitcoin will rise significantly? In fact, from the trend of bitcoin after the first two proction cuts, we find that bitcoin will usher in a super market soon after each half cut. Proction rection can indeed stimulate the price of bitcoin to rise substantially. It is no exaggeration to say that bitcoin halving is an important catalyst to push bitcoin into a super bull market
in addition to ordinary investors, there is a group of people who are quietly paying attention to the price of bitcoin, that is miners! Nowadays, mining costs are rising, coupled with the competition for computing power, currency price fluctuations and other reasons, resulting in the extremely unstable income of miners. In addition, it should be noted that in 2020, with the rection of bitcoin proction and the new upgrading of mining machinery, the cost of mining will be even higher. If the price of bitcoin falls below the cost of mining, the high cost will make the miners have to shut down, resulting in the loss of investment in mining machinery, and finally lead to mine disaster
How do put options hedge the risk of bitcoin falling
recently, bitoffer is the world's first BTC option, which has no margin, no handling charge and no exercise, so it is the most suitable tool for hedging bitcoin spot risk
for example, the current price of bitcoin is $7000. If it goes up to $8000, you can make a profit of $1000 from the spot
What if it falls to $6000? You did not do any hedging, spot direct loss of $1000
if you hedge accordingly and open a put option in bitoffer, the cost will be about US $20-50. If bitcoin falls from US $7000 to US $6000, the put option will earn US $1000. In this way, the US $1000 of spot loss will be offset, and there will be no loss in the account. This is the charm of hedging.
for ordinary investors, the most important thing is the price of bitcoin. Does the rection of bitcoin proction next year mean that the price of bitcoin will rise significantly? In fact, from the trend of bitcoin after the first two proction cuts, we find that bitcoin will usher in a super market soon after each half cut. Proction rection can indeed stimulate the price of bitcoin to rise substantially. It is no exaggeration to say that bitcoin halving is an important catalyst to push bitcoin into a super bull market
in addition to ordinary investors, there is a group of people who are quietly paying attention to the price of bitcoin, that is miners! Nowadays, mining costs are rising, coupled with the competition for computing power, currency price fluctuations and other reasons, resulting in the extremely unstable income of miners. In addition, it should be noted that in 2020, with the rection of bitcoin proction and the new upgrading of mining machinery, the cost of mining will be even higher. If the price of bitcoin falls below the cost of mining, the high cost will make the miners have to shut down, resulting in the loss of investment in mining machinery, and finally lead to mine disaster
How do put options hedge the risk of bitcoin falling
recently, bitoffer is the world's first BTC option, which has no margin, no handling charge and no exercise, so it is the most suitable tool for hedging bitcoin spot risk
for example, the current price of bitcoin is $7000. If it goes up to $8000, you can make a profit of $1000 from the spot
What if it falls to $6000? You did not do any hedging, spot direct loss of $1000
if you hedge accordingly and open a put option in bitoffer, the cost will be about US $20-50. If bitcoin falls from US $7000 to US $6000, the put option will earn US $1000. In this way, the US $1000 of spot loss will be offset, and there will be no loss in the account. This is the charm of hedging.
7. not always. But the overall trend is bullish
on November 28, 2012, BTC was halved for the first time, from $2.01 to $1178, an increase of nearly 600 times
on July 10, 2016, BTC halved for the second time, from $163.65 to $19800, an increase of more than 120 times
BTC is expected to halve for the third time in May 2020.
on November 28, 2012, BTC was halved for the first time, from $2.01 to $1178, an increase of nearly 600 times
on July 10, 2016, BTC halved for the second time, from $163.65 to $19800, an increase of more than 120 times
BTC is expected to halve for the third time in May 2020.
8. The delivery contract should be 40 times, and the sustainability is 100 times.
9.
Since the birth of bitcoin in 2009, the first price to buy bitcoin in 2010 was about US $0.0025. At a price of $27000, bitcoin has risen 10.8 million times since its birth< In other words, the original investment of RMB 1 can buy 61.3 bitcoins, and the current position value is RMB 10.8 million even with bitcoin's amazing growth, Citibank recently announced a target price of $300000, which is 11 times the current price
Although centralized trading has many fatal disadvantages. 100% of the existing currencies and banks in the world are issued or abandoned by the National Central Bank, and ordinary people cannot participate in the issuance of currencies and banks or the central bank accounts. If the Central Bank continues to issue money silver, it will continuously dilute people's money silver and rece the purchasing power of money silver. It's not shocking at all. This has happened in some countries in the world. Take Zimbabwe as an example. In recent years, the government issued a large number of currency and silver, which led to the collapse of Zimbabwe's economy. Finally, the US dollar had to be introced into the local legal currency and silver< Economists are considering replacing bitcoin in ZimbabweHot content