What does the bitcoin consensus do
bitcoin is just a game. If it is promoted as a tool to get rich, it can be regarded as a fraud. Just like the currency in other online games, the only difference is that bitcoin has been standardized since the game was first formulated. It can't be issued indiscriminately, so it can keep its value better than other virtual game props. It is equivalent to the online collection. Bitcoin is a prop in the game, and its value is reflected in the recognition of bitcoin by players: more people play, the value of props in the game is higher; The risk is that he is not the only game, and his algorithm is not the only one. Maybe someone will be able to make other special coins soon. All you need to do is promote the game and sell your props. As for money, bitcoin does not have the basic attributes of money, such as unfair initial distribution and insecure circulation. Money needs to be maintained by the state machine
the concept of bitcoin was first proposed by Nakamoto in 2009. According to Nakamoto's ideas, the open source software and the P2P network on it were designed and released. Bitcoin is a kind of P2P digital currency. Point to point transmission means a decentralized payment system. Unlike most currencies, bitcoin does not rely on specific currency institutions to issue. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of money circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction
1. Bitcoin (bitcoin) is a kind of network virtual currency, which can buy real-life goods. 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
2. On January 7, 2014, Taobao announced that it would ban the sale of Internet virtual currencies such as bitcoin and lightcoin from January 14. On February 26, 2014, Democratic Senator Joe Manchin of West Virginia issued an open letter to a number of regulatory authorities of the federal government of the United States, hoping that relevant institutions would pay attention to the status quo of bitcoin encouraging illegal activities and disrupting the financial order, and demanded that actions be taken as soon as possible to completely ban the electronic currency
3. On May 12, 2017, a global outbreak of bitcoin virus madly attacked public and commercial systems! Nearly 74 countries in the world have been seriously attacked
4. From August 1, 2017, global bitcoin trading platform will suspend recharge and withdrawal services. Bitcoin China digital asset trading platform will stop new user registration on September 14, and all trading businesses will be stopped on September 30
< H2 > reference materials: network bitcoin
reference link: http://wuhan.pbc.gov.cn/wuhan/2929354/3393665/index.html
The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation
extended data:
bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system
to mine bitcoin, you can download the special bitcoin computing tools, register various cooperation websites, fill the registered user name and password into the computing program, and then click the operation to officially start
the bitcoin network is robust, but the bitcoin trading platform is fragile. Trading platform is usually a website, which will be attacked by hackers or shut down by competent authorities
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 finite solutions of a system of equations. Every particular solution can solve the equation and is unique. In the metaphor of banknotes, bitcoin is the number of the top word of a banknote. If you know the number of the top word on a banknote, you have the banknote. The process of mining is to constantly seek the special solution of the equation system through huge amount of calculation. The equation system is designed to have only 21 million special solutions, so the upper limit of bitcoin is 21 million
to mine bitcoin, you can download the special bitcoin computing tools, register various cooperation websites, fill the registered user name and password into the computing program, and then click the operation to officially start. After completing the installation of bitcoin client, you can directly obtain a bitcoin address. When others pay, you only need to paste the address to others, and you can pay through the same client. After installing the bitcoin client, it will assign a private key and a public key. You need to back up the wallet data containing your private key to ensure that your property is not lost. Unfortunately, if the hard disk is completely formatted, personal bitcoin will be completely lost<
currency features
Decentralization: bitcoin is the first distributed virtual currency, and the whole network is composed of users without a central bank. Decentralization is the guarantee of bitcoin's security and freedom
Global Circulation: bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect bitcoin
exclusive ownership: private key is required to manipulate bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself
low transaction cost: bitcoin can be remitted free of charge, but a transaction fee of about 1 bitfen will be charged for each transaction to ensure faster transaction execution
no hidden cost: as a means of payment from a to B, bitcoin has no cumbersome quota and proceres. If you know the other party's bitcoin address, you can pay
cross platform Mining: users can explore the computing power of different hardware on many platforms
advantages
completely decentralized, without issuing institutions, it is impossible to manipulate the number of issues. Its distribution and circulation are realized through open-source P2P algorithm
anonymity, tax exemption and supervision free
robustness. Bitcoin is completely dependent on P2P network and has no distribution center, so it cannot be shut down externally. Bitcoin price may fluctuate and collapse, and many governments may declare it illegal, but bitcoin and its huge P2P network will not disappear
cross border. Cross border remittance will go through layers of exchange control agencies, and the transaction records will be recorded by many parties. But if you trade with bitcoin, enter the digital address directly, click the mouse and wait for the P2P network to confirm the transaction, a lot of money will pass. It does not go through any regulatory agencies and will not leave any cross-border transaction records
it is difficult for the cat to survive. Because bitcoin algorithm is completely open source, anyone can download the source code, modify some parameters, recompile, and create a new P2P currency. But these counterfeit currencies are fragile and vulnerable to 51% attacks. Any indivial or organization, as long as it controls 51% of the computing power of a P2P currency network, can manipulate transactions and currency value at will, which will be a devastating blow to P2P currency. Many Shanzhai coins die in this link. The bitcoin network is robust enough. If you want to control 51% of the computing power of the bitcoin network, the number of CPUs / GPUs required will be astronomical
disadvantages
the vulnerability of trading platform. The bitcoin network is robust, but the bitcoin trading platform is fragile. Trading platform is usually a website, which will be attacked by hackers or shut down by competent authorities
transaction confirmation takes a long time. When bitcoin wallet is first installed, it will consume a lot of time to download historical transaction data blocks. While bitcoin transaction, in order to confirm the accuracy of data, it will take some time to interact with P2P network, and the transaction will be completed only after the whole network is confirmed
the price fluctuates greatly. Due to the intervention of a large number of speculators, the price of bitcoin for cash fluctuates like a roller coaster. Making bitcoin more suitable for speculation rather than anonymous trading
the public did not understand the principle, and the traditional financial practitioners resisted. Active netizens understand the principle of P2P network and know that bitcoin has no legal person to manipulate and control. But the public doesn't understand, and many people can't even tell the difference between bitcoin and q-coin“ "No issuer" is the advantage of bitcoin, but in the view of traditional financial practitioners, "no issuer" currency is worthless.
1. A little thought on currency
at present, the currency issued by all countries in the world is basically credit currency. For example, the US dollar has been decoupled from gold since the Bretton Woods system. It is generally believed that the value of the modern dollar is supported by the national credit, or national strength and military strength of the United States
however, this is specious. Because the national strength and military strength of the United States cannot be quantified, who can tell me how much the national strength and military strength of the United States are worth? Since it is impossible to quantify, how can we ensure that the US dollar is not printed too much? In fact, there is no guarantee. On the other hand, it says "in God we trust" on the dollar, which is to tell you clearly that the dollar is actually a kind of faith. It's like trump supporters shouting, "America! USA! ", People's trust in the dollar is not purely rational, but a mixture of rationality, pride, sacredness, speciousness and habitual thinking
and this kind of trust is also fragile. In recent years, for example, the Thai baht and ruble have dropped by 40% or 50% overnight, which is also common. Even more outrageous, for example, the government of the Republic of China basically cheated on the golden yuan
bitcoin is also true. Its value comes from trust, but it is not backed by the government's credit endorsement. The letter of bitcoin is a more pure letter, because it is more invisible than the legal coin, but there is a small group of people who believe in it, such as me. This kind of letter comes from the simplicity and strength of bitcoin technology, from the ideas beyond the times contained in it, from the dissatisfaction with the existing monetary system, and from the natural yearning for progress of human beings
2. Bitcoin price and reflexivity
Buffett's value investment theory is very popular: because of people's fear or greed, the price of a thing may temporarily be higher or lower than its value, but it will eventually return to the value itself
Soros's view is that because of the fragility of human nature, a thing can never return to its value. That is to say, the correction must be over correct. When the value of a thing is absolutely undervalued, then in the process of rising, people's awareness of its rising is constantly strengthened, which often leads to crazy buying, and the final price will rise to its own value, and vice versa
in this process, the rise of price leads to people's pursuit of a thing, and people's rising expectation will continue to push up the price of this thing
Soros calls it reflexivity
for example, there is a prophet in the village. He told us that gold would go up and we should go to buy gold. Everyone flocked to buy gold. The supply of gold was in short supply, and it rose as expected. So everyone said that the prophet was right
this process has nothing to do with the basic value of gold or the actual demand for gold
if you look at it with a magnifying glass. In this process, the bullish view of gold is constantly strengthened. Because gold also rose in the process. If in the first rise callback, someone sold. When it goes higher for the second time, this person will feel that his operation is particularly stupid, so he will not easily sell when he buys again next time. Even if he sells again next time, there will always be a time when he will "learn to be smart" and no longer sell
man is also a social animal. So this expectation of rising will continue to spread and "learn" from each other, aggravating this weakness of human nature
often when a bubble burst, most people could not escape. A few rational people can run away, a few win the majority and make a lot of money. In the book mob, it is said that the IQ of a group is often lower than that of a person. In management, this is called herding. In China's stock market, this is called "retail dividend". You don't see how many people earn money every day on the platform, even wealth is free.
it is worth noting that the price of bitcoin fluctuates significantly ring the annual meeting, and it also becomes a hot spot in bitcoin market.