Bitcoin hedging principle
firstly, the scope of cryptocurrency is the smallest, including digital currency or virtual currency. For example, we can say that bitcoin is a kind of digital currency / virtual currency, but we cannot say that digital currency / virtual currency is a kind of bitcoin
furthermore, only currencies based on blockchain Technology (including cryptography and encryption algorithms) can be called cryptocurrencies. So cryptocurrency is a word specially prepared for bitcoin, Ethereum, and a lot of currencies based on blockchain technology. For example, CT currency and trip currency on the coin exchange platform
2. Legal currency
means that it does not represent the real goods or goods, and the issuer has not fulfilled the obligation to cash the currency in kind; A currency that becomes legal currency only by government decrees. The value of fiat money comes from the owner's belief that money will maintain its purchasing power in the future. Money itself has no intrinsic value, that is to say, when paper money comes into being, legal tender is essentially the paper money that can be circulated according to the law.
Last week, a paragraph about bitcoin became popular:
bitcoin broke through 5800 US dollars (about 38280 yuan) . When it was issued in 2009, 1 US dollar was equivalent to 1300 bitcoins. What is investment? It has increased by 7.54 million times in 8 years. At that time, you spent 38000 yuan to buy some bitcoin. Now you are the richest man in China, surpassing Xu Jiayin, who has 290 billion yuan
but just one week later, on October 20, bitcoin broke through the $6000 mark. Although it fell later, it reached more than $6000 again on October 21, reaching a maximum of $6147. In terms of $6000, bitcoin prices have risen 7.8 million times in eight years
according to cryptocompare, a bitcoin data provider, e to China's strict supervision of cryptocurrency trading, the global share of bitcoin market has been greatly changed. Now, in the total trading volume of the world's bitcoin exchanges, the trading volume of RMB versus bitcoin accounts for about 1.6%
} the proportion of RMB and yen in global bitcoin trading volume (photo source: cryptocompare)
the reporter noted that in the first half of this year, after Japan's legislation recognized bitcoin as a legal payment method, bitcoin's trading volume in Japan surged, and Japanese regulatory authorities have issued certificates to 11 cryptocurrency exchanges. About 58% of bitcoin trading currently takes place in the Japanese market, and nearly a third of yen to bitcoin trading takes place on the bitflyer exchange in Tokyo. In addition, the U.S. and South Korea markets also account for a large part of global bitcoin transactions - the U.S. dollar and the Korean won account for 27% and 7% of the total bitcoin transactions, respectively< br />
blockchain is a technology, and the financial procts grafted on it are digital currency, such as bitcoin, lightcoin, Ethereum, etc. To be polite, blockchain oil futures trading should be a gimmick. To be polite, it's a liar.
In short, the principle of brick Arbitrage: buy low and sell high, buy money from the place with low price and sell it at the place with high price, that is to earn the price difference of different platforms
but there are three risks in moving bricks:
A. time difference of currency transfer: it takes a certain waiting time to pick up or deposit the currency, so it may miss the best trading time
B. currency price fluctuation: if the currency price fluctuation is relatively large and the process of moving bricks has not been completed, the price difference has disappeared
C. platform problems: some trading platforms may shut down services from time to time, or even run away
principle: carry out brick arbitrage on two platforms at the same time to avoid the risk of "time difference of currency transfer" and "currency price fluctuation"
before moving bricks: the brick moving platform must support the same currency transaction, and the brick moving platforms must be able to transfer currency to each other
Step 1: price difference calculation. There are handling charges for currency trading and currency transfer, so you have to calculate the cost according to your own funds. Only when the price difference reaches how much can it be profitable to move bricks
Step 2: simultaneous operation. Buy BTC on the low price platform and sell BTC on the high price platform. At this time, the number of BTC holdings remains unchanged and the number of usdt increases You need to pay attention to transaction fees.)
Step 3: balance funds. It is difficult to predict which platform has a lower price and which has a higher price e to the price difference. Therefore, the two platforms that move bricks need to prepare usdt and BTC. When the price difference appears, it is convenient to move bricks There are also handling charges for cross platform currency transfer.)
the above is the principle and steps of risk-free arbitrage using BTC and usdt. It also has a big name: quantitative hedging. The fundamental purpose is to earn usdt, not BTC
You can take a closer look at this: Web linkselliptic curve digital signature algorithm is mainly used in the generation process of bitcoin public key and private key, which is the cornerstone of bitcoin system. SHA-256 hash algorithm is mainly used in the workload proof mechanism of bitcoin
the principle of bitcoin generation is the special solution generated by complex operation, and mining is the process of finding the special solution. However, the total number of bitcoin is only 21 million, and with the continuous mining of bitcoin, the more difficult it will be to proce bitcoin, and the cost of acquiring bitcoin may be higher than the price of bitcoin itself
the bitcoin block consists of a block header and the transaction list contained in the block. The size of the block header is 80 bytes, which is composed of 4-byte version number, 32 byte hash value of the previous block, 32 byte Merkle root hash, 4-byte timestamp (current time), 4-byte current difficulty value and 4-byte random number. A block header with a fixed length of 80 bytes is the input string used to prove the workload of bitcoin. Constantly change the random number in the block header, that is, the value of nonce, and do double sha256 operation on the block header after each change, and compare the result value with the target value of the current network. If it is less than the target value, the problem is solved successfully, and the workload is proved to be complete
the essence of bitcoin is actually the unique solution of a set of equations generated by a bunch of complex algorithms. Bitcoin is the first distributed virtual currency in the world, which has no specific distribution center. The network of bitcoin is composed of all users, because there is no center to ensure the security of data.
1. I now have a 100 yuan personal name coin in my hand Bitcoin)
2.. Who cares about the official account? But you need to guess the number of the money in the comments Mining, random filling, numerical solution)
try your best to guess, and you get 100 yuan in full - personal mining
pay money to gather some people to guess together - mining field
gather people you don't know to guess together, and allocate the 100 yuan in proportion through the number of guesses -
the above is a simple example of analogy, of course, You followed and guessed the number of 100 yuan in my pocket, I promise you. So what's going on with bitcoin mining
Author: leaf