Why do countries exclude bitcoin
is an electronic currency proced by open-source P2P software. digital currency is a kind of network virtual currency. Bitcoin is also paraphrased as "bitcoin."
bitcoin does not rely on specific currency institutions to issue, it is generated through a large number of calculations of specific algorithms. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. Since bitcoin was born with an algorithm, it was stipulated from the beginning that all bitcoins in the world would not exceed 21 million bitcoins. Because bitcoin is not regulated by the government, it is not subject to inflation constraints and external control
people use the computing power of CPU and CpG to "mine" to unlock the new bitcoin. To put it figuratively: bitcoin is equivalent to a gold mine created by people using computers. The setting of this gold mine is limited. The upper limit is 21 million bitcoin. People dig out bitcoin one by one just like miners using the principle of CPU computing
the principle of bitcoin, the distributed characteristics of P2P and the design without central management mechanism ensure that no institution can control the value of bitcoin or create inflation. This decentralization makes it a more secure and value preserving "virtual currency"
But in fact, netizens, as well as traders and investors of bitcoin, do not see one of the biggest drawbacks of bitcoin: bitcoin is not uniqueWhat do you mean? We think that bitcoin is the only one with a cap of 21 million, which seems to have the function of preserving value. But the principle of bitcoin algorithm is not only applicable to "bitcoin", a kind of currency from Japan. Every computer engineer can develop the corresponding algorithm, make a man-made gold mine, and control its upper limit. In this way, every country, every region and every person can develop countless algorithms. Then the market will be full of virtual currencies such as "bitcoin a", "bitcoin B", "bitcoin C", "bitcoin D", and so on. By that time, who are you going to invest in? You can create your own currency
this hidden danger is not a dream. In fact, it has already started. You can log on bitcoin's official website in China. You will find that in addition to bitcoin, there is now another kind of thing called "Yuanbao coin". This is an algorithm similar to bitcoin developed by a Chinese development team. It also has the same upper limit. The same people can't control it and dig Yuanbao coin out through "mining"
if they can do this, I believe many computer workers can also write their own "Yuan Bao coin", "gold and silver coin", "China bitcoin" and "Shanghai bitcoin". Bitcoin, as the first code to appear, has no credit support from the Central Bank of any country. It has value only because of the scarcity of 21 million. In fact, this scarcity does not exist, because everyone can develop the virtual currency code, and then people from all over the world can mine it. So what's the price of bitcoin? There are limited kinds of metals on earth, so each metal has different value according to its quantity and scarcity. But the bitcoin like code in the network world is infinite. As long as people are willing, they can create unlimited kinds of bitcoin code. Tell me, is bitcoin still valuable
blockchain Technology:
the main function of blockchain is to store information. Any information that needs to be saved can be written to or read from the blockchain, so it is a database
the essence of blockchain is to achieve the goal of decentralization and disintermediation through a new generation of data technology, so as to transmit value more transparently and efficiently. This kind of point-to-point verification will proce a new network "basic protocol" which is different from TCP / IP in the Internet era
blockchain shows us a world in which all assets will be digitized. In a valuable Internet, the transfer of assets will be as fast, convenient and cheap as the transmission of information today
the significance of blockchain is not the wealth of digital currency, but the value transmission of its technology itself. Therefore, Ma Yun has repeatedly separated blockchain from digital currency, and stressed that the extent to which blockchain technology will change the world is beyond people's imagination
difference:
blockchain is a technology, based on blockchain technology, there can be many applications
bitcoin: is one of the most popular and well-known applications
the content is for reference only, only represents personal views, and does not make any suggestions
the emergence, development, amendment, circulation and extinction of bitcoin do not depend on the government, so "whether the government allows" has nothing to do with "whether bitcoin exists"
for example, the birth, development and extinction of the solar system do not need the permission of the government
if bitcoin is exchanged with the government controlled "legal tender" (such as US dollar), the government can influence the performance of bitcoin by controlling the legal tender
if the recognition of such assets reaches the bottom line of% 35 in 2019, the world pattern will be more reasonable, transparent and open
how should we deal with the coming risks- Buy bitcoin quickly to deal with the risk of "no bitcoin".
however, investors should pay attention to the fact that e to the lack of supervision and the intervention of a large number of speculators, the price of bitcoin is like a roller coaster, with great fluctuation and high investment risk.
On July 25, 2020, the U.S. federal court said for the first time that bitcoin and other virtual currencies are a kind of "currency" covered by the country's laws, which means that bitcoin is not only a commodity transaction category, but also money with monetary attributes. However, the U.S. federal government does not regard it as legal tender, so there is no need to over read it. The U.S. dollar is still far from collapse, As far as the current world monetary pattern is concerned, it is difficult for us dollar to replace its position for the time being. Even if the United States recognizes bitcoin as a currency, it is difficult to compare it with the US dollar. It is only for various reasons
there is no doubt that blockchain technology will lead the market reform, optimize the current financial payment system, and form a more secure, fast and stable monetary system. There are many kinds of air currencies in the market, but they will not become the leading role. The last big corner is still in the central banks, The cryptocurrency launched by the central bank itself is the real mainstream in the future
I'm roseview finance. Please pay attention to more questions. Welcome to exchange and discuss with us. I hope it can help you
the birth of bitcoin was originally a protest against financial hegemony. Today, the United States has to pay for the $500 billion. Bitcoin's purpose is to create a new currency through consensus and trust among people. Bitcoin's purpose is to set the price with the participation of all members and determine the price through the free mechanism of the market, And his proction cost is the cost of equipment and electricity
no one forces anyone to join the coin circle, but the third halving of bitcoin in May 2020 will be a milestone. I don't know if bitcoin will be accepted by nobody as you said. But one thing is for sure: no matter how many non coin circle people question whether bitcoin is a pyramid scheme or has no real value, bitcoin can't be eliminated, Because his value belongs to all the people who hold and trust the consensus. If you have doubts, just watch him quietly, and let time prove the rest.