Bitcoin drops randomly

1.

1、 mining principle

at the beginning, we could dig bitcoin with the computer CPU. The founder of bitcoin, Nakamoto Tsung, g out the world's first creation block with his computer CPU. However, the era of CPU mining has long passed, and now bitcoin mining is the era of ASIC mining and large-scale cluster mining

looking back on the mining history, bitcoin mining has gone through the following five times: CPU mining → GPU mining → FPGA mining → ASIC mining → large-scale cluster mining, The mining speed changes are as follows:

CPU (20mhash / s) → GPU (400mhash / s) → FPGA (25ghash / s) → ASIC (3.5tash / s) → large scale cluster mining (3.5tash / s * x)

mining speed, which is called computing power in professional terms, that is, the ability of computer to generate hash collisions per second. In other words, how many hash collisions can our miner do per second is the calculation force. Computing power is the ability to dig bitcoin. The higher the computing power, the more bitcoin you dig, the higher the return

in the world of bitcoin, a data block is recorded about every 10 minutes. All mining computers are trying to package the data block and submit it, and the person who successfully generates the data block will get a bitcoin reward. Initially, bitcoin rewards of 50 bitcoins could be generated about every 10 minutes. But the payment is halved every four years, and now the bitcoin network can generate 25 bitcoins every 10 minutes

to successfully generate data blocks, miners need to find the effective hash value. To get the correct hash value, there is no shortcut. You can only guess. The process of guessing is the process of computer random hash collision. If you guess correctly, you will get bitcoin

Mining method: from a miner to a large-scale mine, you need to prepare a miner, a computer that can connect to the Internet, an AUC, a raspberry pie, power supply and all kinds of connecting lines, etc. The connection order of various devices is network cable - & gt; Raspberry pie - & gt; Microusb cable - & gt; AUC-> 4Pin cable - & gt; Mining machine and power supply

< EM > Figure 3: Mine Map (scale of tens of thousands of mining machines) < / EM >

nowadays, the profit space of small and medium-sized absenteeism who take one mining machine home or deploy a small family workshop (dozens of mining machines) is very limited, and the mining instry is graally concentrating on enterprises and teams with low-cost power resources and professional deployment ability

there are many factors that affect the mining revenue, such as the performance and power consumption of mining machinery, the computing power and difficulty of the whole network, the deployment and operation and maintenance capacity of the mine, the availability of low-cost electricity resources, and the currency price and policy guidance, etc. At present, excellent mining enterprises have the ability of chip research and development, a lot of computing power, professional mine deployment and operation experience, etc. in the future, resources and computing power will be more and more concentrated in these mining enterprises

2. Mine pool

in addition to the above equipment, you also need a necessary tool - mine pool. The function of the mine pool is to gather a large amount of mineral computing power, increase your probability of getting bitcoin, and at the same time, distribute your future bitcoin income to your account in advance

the simple explanation is as follows: now the bitcoin network generates a block every 10 minutes, which contains 25 bitcoins. Suppose there are 1W people in the world participating in mining, then in these 10 minutes, only one lucky person has taken these 25 bitcoins, and the others have nothing. The principle of the mine pool is that everyone mines in teams and distributes according to the agreed distribution method, so that the income of the miners' bitcoin tends to be stable and the risks of the miners are reced. Let's take the most common PPS allocation method as an example. Suppose that your computing power is 10t, and the computing power of the whole mine pool is 100t. Your computing power accounts for 1 / 10 of the total computing power of the mine pool. Suppose that the mine pool can generate 10 bitcoins a day, then you can get 1 bitcoin a day

3. Cloud computing power

in reality, the supply of mining machines often exceeds the demand, and at the same time, the delivery of mining machines needs a long waiting period. Miner installation, commissioning, maintenance and other processes are very complex, which requires a lot of energy. Miners have to enre the noise and heat of miner. For miners, the biggest cost is not these, but the high electricity charges consumed by mining. The profit space of small and medium-sized miners is getting smaller and smaller, even negative

Mining income and risk mining income can be calculated by the following formula:

Mining income = generated bitcoin * currency price - mining machinery cost - electricity fee - custody fee

if you are just a small miner, generally you only need to dect mining machinery cost and electricity fee

Mining risks are as follows:

< UL >

at present, the number of bitcoin is less than 4.5 million. If we do not issue additional bitcoin, the price of bitcoin will fluctuate, and the price callback will lead to the extension of the payback cycle

mining difficulty improvement at present, our machines can meet the market demand

the risk of power outage

< UL >

< EM >
< / EM >

2. In order to know what mining is calculating, we must first know the essence of bitcoin and its proction process. Bitcoin is a network-based electronic currency, which is actually a string of codes of the Internet, calculated by algorithms. Mining is the process of completing the algorithm and the only way to proce bitcoin. And because of the algorithm, there are only 21 million bitcoins
1. Mining can not only proce bitcoin, but also guarantee transaction information
similarly, a mathematical system contains 21 million mathematical problems, so we need to constantly seek the special solution of each mathematical problem through a huge amount of calculation. In addition, the special solution is unique
mining can not only increase the supply of bitcoin money, but also protect the security of bitcoin transactions and prevent fraulent transactions. In terms of process, bitcoin network is a point-to-point payment system, and anyone can trade through the transaction program
in order to ensure that the transaction process is truthfully recorded, the role of "miner" is required to be responsible for recording bitcoin transaction information. The time interval is 10 minutes. The best recorded transaction records among miners will be packaged and stored in a new block, and the corresponding miners will also receive a certain amount of bitcoin rewards
2. The mining process is extremely complex, which is beyond human power
the specific process is as follows. When a miner listens to the transaction, he will first verify the transaction information. The verified transactions will be recorded by miners and stored in their own database. There may be thousands of miners in the world doing the same thing, but every ten minutes, only one miner has the right to create a new block, so that the transaction information recorded by himself can be recognized and stored permanently
next, miners need to fight for the right to keep accounts. This is a competition of computing power. The core of this competition is to use computers to complete a large number of calculation tasks and find a super difficult random number. This random number is the special solution of the equation mentioned in the first paragraph. The miner who calculates the correct random number first wins. According to the rules of the game, the probability of a miner getting the accounting right is directly proportional to the proportion of his computing power in the total computing power of the whole network. In other words, the probability of finding the random number is equivalent to throwing out 100 million dice, and the total number of dice is less than 150 million. Therefore, mining requires a large number of computers, installation of specific algorithm software, repeated operation day and night, not human
3. Bitcoin mining is actually "villagers' bookkeeping"
maybe some netizens still don't understand, let's take an example. In a village, the villagers often borrow money from each other, even if they write a written document, there is a risk of default. Then, every time there is a loan behavior in the village, we will use the village trumpet to inform everyone that all the villagers (miners) will record all the transaction records in their own account books.

3. Bitcoin is a hot topic recently. It's a way to make money like lottery, but its appreciation and decline are a bit serious, so I don't mind playing with it.

4. No, there will always be a few different numbers or letters. Because once the phenomenon of repetition occurs, the market may be in chaos. The creator should have thought about what the consequences would be if it happened, so I don't think there will be repetition.

5. We know the process of information computing hash packing: transaction record, time, account number, last hash value. We also know that all calculation and storage need to consume computer resources. In Nakamoto's design, the completion of bookkeeping can be rewarded with bitcoin by the system, which is also the process of issuing bitcoin. Therefore, bookkeeping becomes mining
bookkeeping
because bookkeeping is a reward, each time you can add a certain number of bitcoin for yourself, so everyone is competing for bookkeeping, which of course leads to a problem: when there is inconsistency in bookkeeping, the system introces workload proof to solve the problem, and the rules are as follows:
1. In a period of time, only one person can succeed in bookkeeping
2. Obtain the unique bookkeeping right by solving the cryptography problem
3. Other nodes the bookkeeping results
but before the workload proof, The accounting node will do the following preparatory work:
1. Collect the original transaction information that has not been recorded in the broadcast
2. Check whether the payment address in each transaction information has enough balance
3. Verify whether the transaction has the correct signature
4. Package and record the verified transaction information
5. Add a reward transaction: add 12.5 to your address Bitcoin
if you succeed in competing for bookkeeping rights, you can get a reward of 12.5 bitcoin
workload proof
the hash value of the previous block and the current account page information will be hashed together as the original information in each bookkeeping. In order to ensure that only one person can keep accounts around 10 minutes, we have to improve the difficulty of keeping accounts. The results of hash must start with several zeros. In order to satisfy the condition, hash is to introce a random number variable
denoted by pseudo code:
1. Hash (last hash value, transaction record set) = 456635bcd
2. Hash (last hash value, transaction record set, random number) = 0000afd635bcd
if you change part of the original information of hash, the hash value will also change continuously. Therefore, when you run hash, the value of random number will change continuously, A random number can always be found so that the result of hash starts with several zeros. The node that finds the random number first obtains the unique bookkeeping right
verification
after the node successfully finds the hash value, it will broadcast and package the block to the whole network immediately, and the node of the network will verify it after receiving the broadcast. If the verification is passed, it indicates that a node has successfully decrypted, it will not compete for the current block, but will choose to accept the block and record it in its own account book for the next round of competitive guessing. Only the fastest decrypted block in the network will be added to the ledger, and other nodes will to ensure the uniqueness of the whole ledger
If a node has cheating behavior, it will cause the node of the network to fail the verification, give up its packaged block directly, and cannot be recorded in the general ledger, then the consumption cost of the cheating node will be in vain. Therefore, miners consciously abide by the consensus protocol of bitcoin system, and ensure the security of the whole system
it's like you go to the construction site to move bricks. After moving bricks for one day, the contractor asks you how can you prove that you move bricks for one day?

6.

Bitcoin BTC 2009 Satoshi Nakamoto is bitcoin / org ~ $24.3 billion is SHA-256; LTC 2011 coblee is litecoin / org ~ $3.6 billion is script infinite; IFC 2012 ifccion is ifccoin / ORG~$ $20 million is a script quark, qrk 2012, qrkcion is cgbcion / org - $10 million is a script zeta, ZET 2012 zetcony is ZET / org - $10 million is a script proof of work / POS

7.

Research firm chainanaalysis estimates that up to 20% of the existing bitcoin is gone forever. At the time of the study, about 3.8 million bitcoins could never be retrieved. In this article, we will explore all possible ways to lose bitcoin

1. Cryptocurrency hackers

the hacker behavior of cryptocurrency exchange is the main reason for the loss of bitcoin. Exchanges are hot targets for cybercriminals, and Mt. GOx is the first high-profile cryptocurrency hacker. Since then, many major exchanges have been hacked, including bitfinex, bitstamp and cryptopia, the cryptocurrency exchange in New Zealand, which recently lost 9.4% of its total holdings

The deceitful international security and Development Council (IsdC)

the people who have new access to encryption technology have become the victims of false initial token issuance (ICO). They publicize themselves as a new cryptocurrency investment and will get high returns. They use "fear of missing" (fomo) because the project will never come true and the money will never be returned to investors. Experienced investors know how to analyze the project according to the team to assess whether they have the ability to fulfill their commitments, whether they have a minimum viable proct, etc. One of the most famous fraulent ICOS is centra, endorsed by Floyd Mayweather

8. Pump and mping program

coaxing and mping are price manipulation. Swindlers use social media groups to hype projects or tokens called "junk money". Because they have no added value or real use cases, their value will increase exponentially overnight. As soon as the value increases, fraudsters sell their tokens. Soon after that, the price of selling a large number of tokens drops sharply, resulting in huge losses for those who hold them for a long time or buy them at a higher price. Celebrities or people are also used to hype the so-called "ng money"

9. Refrigeration equipment is lost or damaged

many people start using bitcoin when it is not valuable. They throw away their old computers, misplaced hardware wallets, etc., or their computers are damaged

10. Careless

send bitcoin to the wrong address, some wallets and transactions, all options to prevent users from sending bitcoin to the wrong wallet (non bitcoin)

8. Unlike traditional currencies, bitcoin's operation mechanism does not rely on the support or credit guarantee of the central bank, the government and enterprises, but relies on the network agreement reached by the seed files in the peer-to-peer network. The decentralized and self-improvement monetary system theoretically ensures that no one, institution or government can control the total amount of bitcoin or create inflation. Its total amount of money graally increased at the designed rate, and the increase rate graally slowed down, and finally reached the limit of 21 million in 2140. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity. The monetary system used to have no more than 10.5 million in four years, after which the total number will be permanently limited to 21 million. The manufacture of bitcoin is the mining of personal computers
because the quantity is limited, it will not fluctuate with the fluctuation of financial currency. However, if the goods are converted into goods and traded in bitcoin, because the goods are affected by the fluctuation of market price, the quantity of bitcoin required will also change. To put it bluntly, it is not affected by finance, but it is reflected in the fluctuation of the value of goods and financial currency notes. In addition, this is like a rare item, because of its scarcity and speculation, it will also enhance its exchange value. With more and more people to develop, then the market price will eventually fall after reaching the peak in a period of time.