Summary before bitcoin

1. On November 1, 2008, a self styled Satoshi Nakamoto posted a research report on a secret cryptography discussion group. The report expounded his new idea of electronic currency bitcoin came out
on January 3, 2009, Nakamoto g up the first batch of 50 bitcoins on a small server in Helsinki, Finland
on May 21, 2010, the first bitcoin transaction: Laszlo hanyecz, a Florida programmer, bought a $25 pizza coupon with 10000 BTC
on July 16, 2010, the price of BTC rose by US $0.08 from US $0.008. The first sharp price fluctuation shows the rise of new things
on July 17, 2010, the first bitcoin platform was established
on November 6, 2010, the price on mtgox reached $0.5, and the bitcoin economy reached $1 million
on December 7, 2010, the first portable device to portable device transaction was realized on Nokia 900, with a transaction volume of 0.42btc
on February 9, 2011, the price reached US $1 for the first time, which is equivalent to US $1. The news that BTC is equivalent to us dollar has been widely reported by the media, which has aroused people's great attention, and the number of new users has increased greatly. In the next two months, bitcoin and pound sterling, Brazilian currency, Polish currency exchange trading platform has opened
on March 18, 2011, the BTC / USD exchange rate hit a seven week low, falling to US $0.7
on August 20, 2011, the first bitcoin conference and World Expo were held in New York. Among Google trend counties, bitcoin's attention reached a new high, with a price of $11 at that time
on November 14, 2011, the price of bitcoin hit a new half year low of $1.99
on September 15, 2012, the bitcoin conference was held in London. At this time, the price of bitcoin was $11.8
on September 27, 2012, bitcoin fund was founded, and the price of bitcoin was $12.46
on November 25, 2012, the first bitcoin conference in Europe was held in Prague, Czech Republic. At this time, the price of bitcoin was $12.6
on February 19, 2013, bitcoin client v8.0 was released. At this time, the price of bitcoin was $28.66
on April 10, 2013, BTC set a record high price of $110
on May 9, 2013, BTC Chinese, the largest bitcoin reporting website www.sosobtc.com The company obtained the investment fund Union Square's US $5 million round a investment, and the price of bitcoin was US $112.09 at this time< On May 28, 2013, the Department of Homeland Security banned the virtual currency service of Liberty Reserve, a Costa Rican exchange company, for its suspected xiqian and unlicensed fund transfer business, U.S. prosecutors said that this will become the largest international xiqian lawsuit in history, with the scale of absorbing money reaching 6 billion US dollars. A large number of users, including China, will lose all their money. At this time, the price of bitcoin is 128 US dollars
in June 2013, Netcom said that the United States will withdraw from qe3, deflationary bitcoin and quantitative easing monetary policy, which are the relationship between the two
on June 27, 2013, the German Conference made a decision: holding bitcoin for more than one year will be tax-free, which is considered by the instry to recognize the legal status of bitcoin. At this time, the price of bitcoin is $102.24
on June 28, 2013, mtgox obtained the monetary service license issued by the financial crime enforcement network office of the U.S. Department of the Treasury. Transaction standardization may mean that bitcoin is on the right track, government risk is reced, and its pace of integration into the display economy will be accelerated. At the same time, it will play an exemplary role in other virtual currencies. At this time, the price of bitcoin is $97.99
on November 28, 2013, the bitcoin trading price of Mt. GOx, a popular bitcoin exchange, broke through $1000, reaching a record high of $1073
on November 29, 2013, the trading price of bitcoin on Mt. GOx, a popular exchange, hit a record high of US $1242, while the price of gold was US $1241.98 an ounce, surpassing that of gold for the first time.

2.

The earliest is a kind of network virtual currency. It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Therefore, it is used as a money laundering tool by some criminals. In 2013, the U.S. government recognized the legal status of bitcoin, making the price of bitcoin soar

< H2 > extended information:

bitcoin is e-cash similar to e-mail. Both parties need "bitcoin wallet" similar to e-mail and "bitcoin address" similar to e-mail address. Just like sending and receiving e-mail, the remitter pays bitcoin directly to the other party through a computer or smart phone according to the recipient's address

starting from the essence of bitcoin, the essence of bitcoin is actually a special solution generated by a bunch of complex algorithms. A special solution is one of the infinite (in fact, bitcoin is finite) solutions that can be obtained from the equations. Every particular solution can solve the equation and is unique

many websites for technology players have begun to accept bitcoin transactions. Websites such as mtgox and btcchina, as well as some Taobao stores, can even accept services such as bitcoin exchange for us dollars and euro. There is no doubt that bitcoin has become a real currency in circulation, rather than a virtual currency like Tencent Q coin

3. Bitcoin is different from the previous currency, it completely relies on the Internet to create and trade; Bitcoin's unique technical attributes lead to its economic and cultural attributes beyond the present currency. Bitcoin is a kind of electronic currency proced by open-source P2P software. Compared with the paper currency in circulation, the biggest feature of bitcoin is decentralization and global circulation in the network world, followed by high security and high confidentiality. These technical attributes further extend to the economic attributes of no inflation, no freezing, and no man-made supply; In terms of culture, bitcoin is popular among anarchists and liberals. The advantages of bitcoin are artificially exaggerated, and its anti inflation and anti inflation functions cannot stand up to scrutiny. In the long run, the prospect of bit is hard to match that of gold. In the most optimistic case, it will become a means of payment in some areas; But in the short and medium term, bit still has room for speculation and imagination. In addition, the use of bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security
1. The advantages of bitcoin are exaggerated: About decentralization, no transaction costs and anti inflation
it is true that bitcoin has various advantages over paper money, but these advantages have been over interpreted. First of all, bitcoin is a kind of decentralized currency, which will not have the same risk of central bank controlling money supply and affecting market value as paper money; Bitcoin is mainly held in the hands of large investors, and the market depth is not enough. At present, the trading behavior of large investors is also very easy to affect the price of bitcoin. Even if the attribute of decentralization is regarded as the advantage of bitcoin when it is fully mature, then the prerequisite of holding decentralization should be added. In addition, there are great differences between centralized and decentralized online payment systems in the degree and type of financial risks they are exposed to
secondly, the low transaction cost of bitcoin is not without transaction cost. On the contrary, e to the increasing difficulty of bitcoin mining and the further stability of currency value, the dependence of relevant transaction platforms on transaction cost will increase, which will certainly increase the transaction cost. Finally, the confidentiality of the bitcoin transaction needs to be discussed. The principle of the bitcoin transaction makes all the processes of each bitcoin transaction stored in each machine. If someone can determine the real background of a transaction, they can find all the transactions down and up through these data
compared with other advantages, anti inflation or anti inflation is the most publicized advantage. Although its supply is stable and the upper limit of supply is locked according to its algorithm, unless the whole world is unified and all countries use bits as currency, it can not prevent the over issuance of money only as a means of payment or a storage of value, just as the current existence of gold can not constrain the growth of each country's currency. If bits can only be used as a means of payment in local areas (such as the network), then global or some countries' inflation will still be transmitted to the areas where bits are used. Therefore, the use of bits to prevent inflation is basically untenable, or has a strong premise. As for anti inflation, that is to say, it has the function of value storage, it needs to have the property similar to gold. However, from the reality, bit's essential property and prospect are still hard to match gold. See below for details
2. Bitcoin's future positioning is too high
the expectation of bitcoin's future in the market generally compares it with gold and US dollar, which is relatively high. The recognition of gold not only lies in its natural physical properties, but also in its official acceptance as a reserve currency (or an important allocation of foreign exchange assets). In theory, bitcoin as an electronic currency does not have the unique and exclusive status, and it is more difficult to become the official reserve of central banks like gold. Therefore, it is not appropriate to expect too much bit. As an electronic currency, bit has the first mover advantage. If it can be guaranteed in terms of security, its most optimistic prospect will be as a means of payment in local areas
3. Speculation and speculative demand caused by event factors are the main reasons for the rise of bitcoin in this round
under the credit currency system, people's lack of confidence in the currencies of various countries and pessimistic economic prospects are the general environment for the rise of bitcoin in this round. The speculation of the major dealers in the market and the derivatives market of bitcoin, together with the speculative psychology of the participants, further accelerated its rise. Btcchina's investment of US $5 million and the announcement of Ben's position are the main driving factors for the recent surge
however, a lot of big players start to enter the market and buy a lot, which not only drives the bit price up to a high level, but also increases the market risk. Chamath, a former Facebook executive, has spent $5 million on bitcoin and plans to spend another $10 million. Bitcoin investment trust also exceeded its target within four weeks, raising $15 million. These people's investments not only make bitcoin further rise, but also concentrate on the holding of bitcoin, which strengthens the influence of indivials and institutions on the price of bitcoin and increases the market risk
4. There is still strong room for speculation in the medium and short term
although our previous analysis is not optimistic about the prospect of bit, it is likely that bit will still have strong room for speculation in such a short and medium term period of time as one year. As mentioned in the previous analysis, the creators of bitcoin advocate that the generation of bitcoin is not manipulated by human factors, which is quite different from the credit currencies of various countries. We expect that the monetary policies of major countries will be divided next year. With the release of economic risks and the heavy damage to traditional asset markets, bitcoin will have better room for speculation and imagination< The use of bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security
the U.S. government seized the drug trading website "Silk Road" at the beginning of last month. A crowdfunding network called "assassination market" even marked the sale of murderers with bitcoin price. The founder of the assassin market, under the pseudonym of kuwabatake Sanjuro, is an extreme anarchist. Both prism gate incident and the use of bitcoin in relevant sensitive fields highlight the increasingly prominent position of information field in national security. The Third Plenary Session proposed the establishment of the national security committee, which will play an important role in China's security strategy and expand from traditional national defense, stability maintenance / urban security to information security and other emerging areas

4. 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.

5. 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

6. The most fundamental way of children's learning should be activity, which is the bridge between subject and object and the direct source of cognitive development. According to the psychological characteristics, letting students explore knowledge independently in the coordination of hands, mouth and brain can develop students' cognitive structure. This requires us to change the classroom teaching mode in teaching, implement open teaching, and let students study independently. I always encourage students to think freely, rationally, boldly and even fantastically in class. For example, when learning "the destruction of the Old Summer Palace", the multimedia courseware was used to create the situation, and the fragments of the movie "burning the Old Summer Palace" were shown to the students. Then they thought of gunpowder. They proposed: China was the first to invent gunpowder, why not make artillery and fireguns to deal with the British and French allied forces? In this way, the students' thinking suddenly goes beyond the books. Second, let the students "see" as much as possible, and cultivate the students' discovery ability. "See" is to let the students watch, observe, give enough time to observe, obtain "discovery" through "see", and actively learn knowledge on this basis. For example, when learning the scenery of Yuanmingyuan, Cai is used to show the scenery pictures of Yuanmingyuan. The students can observe and appreciate them heartily, and then according to their own observation and discovery, give the pictures a name with the same beauty as the pictures - title. Then compare the original name of the picture with the name of your own question to see who is good and why. For example, according to the architectural characteristics of "flower array", it is like a blooming lotus and is named "stone flower jade Pavilion". In this way, students explore and creatively learn knowledge on the basis of full "seeing". Third, let the students "draw" as much as possible to cultivate their thinking ability. Students can draw and describe the information they have obtained from different perspectives and levels of thinking by seeing, experiencing and imagining with their own eyes, and then express it with language, so that the students can better move their hands and brains in class, and overcome the problem of using only ears to listen, listening and thinking in class It is not enough to operate without small hands. In the class of painting style of the first grade, the word "painting" was fully reflected in the design. Both the teacher and the students expressed certain thinking results in the way of painting. The teacher used "simple strokes" to write on the blackboard the things in the wind mentioned in the book. In the class, the students were also designed to "draw" the "wind" on a beautiful landscape painting to see whose way they thought more, And tell us why we draw the wind in this way. In this way, the consciousness and interest of students' active exploration are aroused, and the ability of students' brain and hands-on is cultivated. In the process of exploring how to draw, students will understand that the wind can not be drawn directly, only through other things in the wind to express this point, which is much better than the effect of the teacher. Fourth, let the students "speak" as much as possible, exercise their eloquence, and express the rationality of their thinking through language, so that they can understand how the students think and how to achieve the rationality of their thinking. The teacher creates a free space for students to speak freely, and truly achieves a harmonious and democratic classroom teaching atmosphere, giving students a blue sky of independent exploration. For example, the students' oral expression ability, thinking ability and the ability to organize language quickly can be trained by means of "naming, speaking on stage, group speaking, question and answer type communication" and "adding, summarizing, modifying, correcting and synthesizing". Fifthly, let the students "do" as much as possible to cultivate their practical ability. The process of doing it by themselves actually includes the process of thinking and exploration. Here we should design and provide the time and necessary material conditions for the students to do it. For example, when reviewing idioms at the end of the term, we should change the way that the teacher found out the idioms in a book and let the students , read and remember them. Instead, we should trust the students and let the students read the text by themselves. We should also ask the students to compare and compare. Who can find all the idioms in a book. In this way, students fully reflect their autonomy and enthusiasm in the process of finding out for themselves. Sixthly, let the students accept the knowledge critically and creatively, show the thinking process, create a relaxed environment, require the students to adhere to the truth, follow the objective laws of things, dare to doubt the predecessors, not only books, not only on. For example, when learning the lesson "Zhan Tianyou", the students admired Zhan Tianyou, and at the same time, they also talked about their own design and ideas for his "herringbone railway design", "middle shaft sinking method", "relative shaft sinking method", and carried out reasonable imagination and scientific thinking. For another example, when studying snakes and crops, the students boldly said, "the reason why the crops can't get a good harvest is not only because they were drowned by the flood, but also because the sea water is salty, which destroys the soil and makes the soil unsuitable for the growth of crops. But after a few years, the rain from the sky diluted the soil that had been destroyed by salt water before, so the crops were harvested again, not only because of snakes. Students use their own knowledge and experience for reasonable analysis, dare to doubt, dare to accept knowledge creatively, and fully show the students' reasonable thinking process. 7. To teach students the "method" and "place" of "fishing", it is often said that "teaching people how to fish is beneficial for life". In this knowledge-based economy era with knowledge explosion, today's knowledge will not be enough tomorrow. We should not only teach students the learning method of "how to fish", but also tell students the place of "fishing", Tell students where to find, where to learn, where to find what they need, how to collect some information and where to get information, that is, tell students the ways and channels to collect information and obtain information. For example, through newspaper clippings, book excerpts, TV recordings, radio recordings, CDs, disks, online downloads, field surveys, their own life experience, special interviews and so on. How to sort out and deal with the collected materials to make them useful to you? If you know "there will be rain tomorrow" from "TV", how will you deal with this information? You'll take your umbrella tomorrow. What do you think if you read in the newspaper that a middle school student committed suicide by jumping off a building because of his poor exam results? What kind of inspiration will your psychology proce? If you are also a person with poor enrance and can't stand setbacks, how will you deal with this situation? Should I adjust my mind and treat the exam correctly? In this way, it can help students master the ways of collecting information, acquiring knowledge and processing information. As long as we change the concept of ecation, leave time, space and opportunity for students, let them think, see, speak, draw, do and doubt boldly, and teach them not only learning methods but also ways to acquire knowledge, we can cultivate students' ability and consciousness of independent inquiry.

7.

The difference between foreign currency and foreign exchange mainly lies in the following two aspects:

1. Different concepts

foreign exchange refers to the creditor's rights that a country can use in the event of balance of payments deficit in the form of bank deposits, treasury bonds of the Ministry of finance, long-term and short-term government securities, etc. To put it simply, it means all the foreign currency assets owned by a country and various payment means that can be used for international settlement of claims and debts

Foreign currency refers to all foreign currencies except domestic currency

The main uses of foreign exchange are: means of payment and credit instruments for international trade and settlement; It can be used to adjust the balance of international funds; It can be used as an important international reserve resource of a country

Foreign currency is mainly used for commodity payment and currency exchange

extended information:

foreign exchange trading should pay attention to:

1, looking for events to stimulate market volatility

if you want to trade, then you should look for events to quickly stimulate market volatility, which can be company statements, data release or important meetings. These events can affect the fluctuation direction of the market in a very short period of time, so they also give traders the opportunity to make quick profits

In foreign exchange trading, if the market is contrary to your expectation, it is normal for you to feel panic. You must set a stop loss to control the loss range, rather than hope that the market will eventually change direction. Most successful traders are very sensitive to the loss, they will try their best to control the loss. In addition, don't move the stop at will

3. Keep checking the market

if you are sure that you have enough time to check the market frequently, you can start trading. When some short-term traders find that the market is contrary to expectations, they will decide to take long-term positions halfway. But it's likely to get stuck in a deal that's not good for you

8. Bitcoin is a consensus network, contributing to a new payment system and a fully digital currency. It is the first decentralized peer-to-peer payment network, which is controlled by its users without a central management organization or middleman. From the user's point of view, bitcoin is much like Internet cash. Bitcoin can also be regarded as the most outstanding three style bookkeeping system

bitcoin is proced by mining. Mining is the process of consuming computing resources to process transactions, ensuring network security and keeping everyone's information synchronized in the network. It can be understood as the data center of bitcoin. The difference lies in its completely decentralized design. Miners operate all over the world, and no one can control the network. This process is called "mining" because it is similar to gold panning, because it is also a temporary mechanism for issuing new bitcoin. However, unlike gold panning, bitcoin mining provides rewards for services that ensure the safe operation of payment networks. After the last bitcoin, mining is still necessary

the total number of bitcoin is 21 million, and more than 1300 points have been mined. Bitcoin was invented by a person or organization named Nakamoto in 2009. At present, Nakamoto has disappeared. He is a mysterious figure. No one knows who he is.