Simple explanation of bitcoin

1.

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

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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

2.

Bitcoin is the first distributed virtual currency

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

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as a virtual commodity, bitcoin itself has no national boundaries, and its operation mode is a "decentralized" monetary system, which is very convenient for one-time large transaction. Bitcoin is traded through the network, and the owner's identity is only in the form of a set of encrypted computer code

in the operation, input a digital address directly, click the mouse a few times, and wait for the confirmation of the transaction to complete the transaction. The network can only record which address a bitcoin was g up from and how it was transferred

however, the identity of the owners of these addresses can not be verified, which is just like when money goes to an ownerless bank account, the relevant transactions can easily be invisible from the perspective of government supervision, and it is difficult to be tracked or intercepted. In addition, bitcoin can evade the scrutiny of exchange control institutions required by normal cross-border remittance, and the transaction records will not be recorded by banks and other parties

naturally, the problem of reporting to relevant departments after the transaction exceeds a certain amount is avoided. Buy bitcoin with domestic currency, sell it on foreign trading platforms, and withdraw it in US dollars. Asset transfer can be completed in a few minutes

it is not difficult to open an overseas bank account related to bitcoin for foreign exchange, and the conversion is very convenient. Because of these characteristics, bitcoin has been chosen by criminal organizations

3. To borrow the answers of others, this explanation is relatively simple
BT currency is a kind of virtual currency proposed by a Japanese in 2008 and officially issued in 2009
BT coin is like a gold mountain with a total amount of 21 million gold coins (the upper limit of the total amount is designed to be 21 million). To get it, players need to use the computing power of the computer to calculate a group of numbers according to the designer's algorithm, just like everyone working together or calculating a mathematical problem separately, each group of numbers can be obtained, Then you will get a BT coin, and the world can only proce 25 at most every 10 minutes. This calculation process is vividly called mining

of course, these mathematical problems are becoming more and more difficult. From 2009 to now, the output of BT coins is about 10.4 million. The more the quantity on hand, the more difficult the output will be. Bitcoin is scarce. The upper limit of issuance (21 million) has been set. The difficulty of obtaining bitcoin increases geometrically. It is estimated that it will take hundreds of years to complete
it's ridiculous to say that it's an international QB. It's all virtual currencies, but the security and versatility of BT currency are incomparable to QB. TX is closed, QB is finished. But if BT currency is to collapse, it will not be possible unless there is a global power outage or the global Internet is paralyzed
with regard to the use of BT currency, the world has begun to accept the use of BT currency. Germany first recognized the legality of BT currency, and China also has a trading website BTChina, which can directly exchange BT currency into various current currencies of most countries, including RMB. In China, there are many sellers who accept BT coin on Taobao, and there are also many stores and supermarkets that begin to accept BT coin in Beijing, Shanghai and other large and medium-sized cities
just now, the BTC / RMB exchange rate in this second is 1 / 4888.03, which is still very valuable, but mining needs a lot of investment in advance. A professional mining machine (professional configuration for BT coin computer) is about 40000, 60 such machines work 24 hours, the output can be about 50. In addition to the astonishing power consumption and custody costs, the cost will be recovered in about a month. If you want to make money by mining your ordinary computer, it's a fable. If the owner has no capital investment, it is suggested to give up. The standard configuration of 5000 computers on the market, 48 hours of work also only dig out 0.001 BT coin... Thanks to grandma's house, the main reason is that there is capital investment in the building, so we have to hurry up. At present, it is estimated that the proction and income can still be profitable for 3 or 4 years at most. After this time, mining will not be able to make ends meet.

4. 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. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. 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.

5. I will analyze my personal cognition of the value of comparative currency from two perspectives:
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.

6. Introction: Shanghai Shengyuan Heavy Mining Machinery Co., Ltd. is a joint-stock enterprise specializing in the proction, research and development, sales of complete sets of crushing and screening equipment and grinding, environmental protection equipment. Headquartered in Fengxian District, Shanghai, the company covers an area of about 20000 square meters, has more than 100 sets of large and medium-sized machining equipment, has strong machining and manufacturing capabilities, and is at the absolute leading level in the same instry. The company continues to deepen the enterprise management system, create excellent corporate culture, Shengyuan mining machine is growing into a dazzling star in the crushing and screening instry&# 160; Shengyuan mining machinery is determined to forge ahead and has made great achievements in the research and development of new procts. It has independently cultivated a number of high-level management and technical elites. After years of accumulation and efforts, Shengyuan mining machinery has successfully developed a series of procts in the four fields of mining, cement, construction and chemical instry, which can meet all kinds of crushing and screening needs of customers to the greatest extent. We are always committed to providing customers with the most valuable solutions, customer satisfaction is our biggest goal&# 160; The company's after-sales service team is experienced and skilled, with customer service outlets in many provinces in China, which can quickly respond to customers' after-sales service requirements. For the normal proction of customers to provide a strong guarantee. Shengyuan Mining Machinery Co., Ltd. is committed to providing three guarantees for the main engine within one year, and providing lifelong after-sales service for all Shengyuan equipment. Our task is to meet the needs of our customers. We are guided by the needs of our customers, constantly improve customer satisfaction, create win-win market relations with our customers, and provide customers with the most thoughtful and satisfactory consulting, sales and after-sales services&# 160; The company's main procts include jaw crusher, impact crusher, high-efficiency fine crusher, compound crusher, VSI sand making machine, vertical mill, spring cone crusher, single cylinder hydraulic cone crusher, vibrating feeder, circular vibrating screen, sand washer, high-pressure roller mill, dryer, belt conveyor, etc More than a dozen kinds of crushing, grinding and screening equipment are widely used in mining, chemical, metallurgy, building materials, coal, refractory and other instries. The company's procts have passed IS09001:2000 international quality system certification and EU CE certification, and successfully entered the EU market. Shengyuan mining machinery focuses on proct quality and solutions to meet the actual needs of customers. It provides customers with the best process configuration, considerate on-site installation and debugging, and satisfactory after-sales service, and has won unanimous praise from customers at home and abroad&# 160; Customer satisfaction 100%, proct quality zero defect. Shengyuan mining machinery always takes the instry leader as the standard, constantly surpasses and challenges the limit, pursues higher management and proct quality, and creates a century old brand in the mining instry&# 160; website: http:www.sandmake.cn
legal representative: Xiao Guijun
time of establishment: June 18, 2009
registered capital: RMB 5 million
Business Registration No.: 310115001134123
enterprise type: limited liability company (invested or controlled by natural person)
address: building 4, No. 939, Haixu Road, Pudong New Area, Shanghai

7.

Bitcoin is a kind of electronic cryptocurrency based on blockchain, which is decentralized, global, and does not need third-party institutions or indivials. Bitcoin was invented and founded by Nakamoto (pseudonym) on January 3, 2009, based on the peer-to-peer network without borders, using consensus initiative open source software. It is the ancestor of cryptocurrency and blockchain, and is also the cryptocurrency with the highest popularity and market value at present

generally speaking, bitcoin is a digital currency with a total amount of 21 million, which has the characteristics of decentralization, globalization, anonymity and so on, just like the Internet. Transferring bitcoin to the other side of the earth is as simple, low-cost and unlimited as sending e-mail. Bitcoin is therefore used in cross-border trade, payment, remittance and other fields

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the global financial crisis broke out in 2008. On November 1, 2008, a person who called himself Nakamoto published bitcoin white paper "bitcoin: a peer-to-peer e-cash system" on the P2P foundation website, stating his new idea of e-currency bitcoin. On January 3, 2009, bitcoin Genesis block was born

compared with fiat money, bitcoin does not have a centralized issuer, but is generated by the calculation of network nodes. Anyone can participate in the manufacture of bitcoin, and it can circulate all over the world. It can be bought and sold on any computer connected to the Internet. No matter where they are, anyone can dig, buy, sell or collect bitcoin, And in the transaction process, foreigners can not identify the user's identity information

as a standardized, globalized, highly volatile, 24-hour and never-ending trading target, bitcoin is more volatile than stocks, foreign exchange, precious metals and other electronic disk targets; In terms of standardized trading, soaring history and future prospects, it is better than the physical speculation targets such as stamps and coins, garlic, Pu'er tea and Huangli wood, so it has attracted a lot of hot money to participate in the speculation

at present, the funds attracted by bitcoin as the target of speculation far exceed the funds attracted by the payment system. At least half of the price of each yuan is the value of the target of speculation

reference: network bitcoin