Bitcoin exchange run

1. The nodes of bitcoin are software running on the computers of millions of bitcoin users, and millions of bitcoin nodes are interconnected to form a bitcoin network. Bitcoin node software usually includes the following functions:
1) wallet. It's used to store your bitcoin balance. In principle, as long as you have the private key of your own bitcoin address, you can use your own bitcoin
2) verify the transaction or payment. After receiving the transaction, the bitcoin node will use certain algorithms to verify the validity of a transaction. If you only change the balance of bitcoin in your computer, others will not recognize it. Similarly, your wallet will not recognize the transaction changed by others
3) mining. Core wallet can start mining function through a command to join the mining army, while SPV wallet usually can't (SPV is just passing by). However, it is not the node type that hinders home computer mining, but the rapid development of professional mining machines. Compared with ordinary computers, the computing power of ordinary computers is very small. Mining by ordinary computers is like digging your own backyard with a hoe, and then expecting to dig out gold
because of the demand of bitcoin users, bitcoin exchange was born. The exchange provides a place for centralized trading. People put money on the exchange, and the exchange will match and trade together, similar to stocks and securities. Therefore, banning exchanges does not mean banning bitcoin. Bitcoin network cannot be banned. Bitcoin is sent to the exchange's wallet, and all you see is a balance given to you by the exchange. In fact, you no longer have your own bitcoin. Bitcoin network is global. Where there is a network, there will be bitcoin. After the exchange closes, bitcoin will not disappear, but will return to where it should be.

2.

On the evening of September 14, bitcoin China's official website announced that according to the spirit of the document issued on September 4, bitcoin China digital asset trading platform stopped new user registration from September 14; On September 30, the digital asset trading platform will stop all trading business

except bitcoin China, the other two platforms have not released relevant announcements yet. In response to reporters, Huo coin said that it has not received any clear documents or notices about the content of news reports. Okcoin said that the official announcement of okcoin should be taken as the standard

virtual currency has a long way to go and needs further supervision

3.

at present, the vast majority of digital currency transactions are concted in exchanges. Among the numerous exchanges, bitfinex, binance, okex and so on are well-known

However, bitcoin and other digital currencies, as decentralized assets, have to be traded in a centralized exchange, which seems to have hidden contradictions and dangers

1. Problems and challenges of stock exchanges=“ //www.yuanxue365.com/en/img_fd039245d688d43fdf16c83b761ed21b0ff43bbf ">

in February 2014, Mt. GOx, the world's largest bitcoin exchange at that time, was stolen 850000 bitcoins, and the price of bitcoin suffered a" cliff "crash on that day. Later, it was revealed that Mt. GOx was in fact a thief, and only 7000 bitcoins were actually stolen

in August 2016, bitfinex, the largest U.S. dollar bitcoin trading platform, suffered a security vulnerability, resulting in the theft of 120000 bitcoins, which was worth $65 million at that time. If converted into the price in December 2017, it would be worth nearly $2 billion

on December 19, 2017, South Korea's youbit exchange was attacked by hackers and lost 4000 bitcoins, and the exchange declared bankruptcy

on December 21, 2017, the Ukrainian liqui exchange was stolen 60000 bitcoins, and the unit price of bitcoin plummeted by US $2000

in 2018, such a drama will only continue

in addition to the threat of hackers, traditional exchanges also have some inherent shortcomings, such as lack of supervision and inefficiency. The security of the exchange for investors can only rely on its own credit, and the cost of running is very low. The stock exchange is regulated at the national level, but there is no such sword of Damocles on the top of the digital currency exchange. Moreover, in an exchange, the same order can only be submitted to one exchange. After the user places an order, the funds used for the transaction will be frozen and can only wait for the completion or cancellation of the transaction. These are undoubtedly inefficient

All in all, the problems of exchanges are the problems of centralization

2. Decentralization of exchanges=“ //www.yuanxue365.com/en/img_86d6277f9e2f070889a173c9e224b899a801f257 ">

(1) the progress of the exchange itself

the upgrade of security means is various. At present, the best use is cold wallet, that is, to keep the digital currency in the offline U disk. At the end of 2017, when the YouTube exchange was attacked, 75% of its assets were withdrawn into the cold purse in time to avoid greater losses. However, it seems to be a helpless way to protect the online assets by offline means. Of course, there should be many other methods, which will not be repeated here

(2) the representative of cross ledger transaction is ripple network, and the operating company is ripple labs, which is a semi centralized system. Ripple is a decentralized clearing agreement. In order to solve the high cost and delay of inter-bank clearing, its base currency is XRP. Ripple network can connect all kinds of assets, such as US dollar, RMB, Japanese yen, bitcoin, etc. to its own network. In this system, U.S. dollars or bitcoin can be converted into reborn currency, and then reborn currency can circulate freely in the network, just as a highway is built between various assets. Due to the support of major banking institutions, the reborn currency achieved nearly 300 times growth in 2017

(3) decentralized exchange

some teams try to use blockchain technology to build a decentralized exchange. This kind of decentralized exchange, to some extent, is an extension of cross ledger trading

bitshares is the most representative of early rising projects. It builds a blockchain development platform with servers scattered all over the world. Even if some of them are attacked, the system will not collapse. Anyone can transfer money and borrow money freely on this platform, and can also quickly build a centralized exchange based on this platform. In order to ensure stable value, bitstocks also require three times of digital assets as collateral. At present, bitstocks are running fairly well

later, with the development of Ethereum and smart contract, the x x protocol came into being. This is an open protocol running in the Ethereum blockchain and a decentralized exchange in the Ethereum ecosystem. The agreement has attracted many investors. At present, it has completed financing and started to build open source software tools and infrastructure. Of course, there are many competitors. Ether Delta, IDEX and oasis DEX are trying to provide similar functions. Moreover, it is a smart contract system based on Ethereum, which only supports erc20 token. If other smart contract public chains start to rise, the demand will be reced

in addition, there are some teams that are entering, such as the domestic road seal agreement, looping (LRC) in English. They adopted a design similar to the X protocol, and also introced a fast payment function similar to the lightning network. It is characterized by trying to match multiple exchanges, the user's order can be broadcast to multiple exchanges, and completed by different exchanges. Moreover, the user can still use the account funds after placing an order, and the user's behavior of transferring part or all of the funds is equivalent to partial or total cancellation. To some extent, it improves the breadth and timeliness of the transaction. However, this system seems to have damaged the "power" of the existing exchanges. Whether we can persuade everyone to play together will be a difficult problem

At present, there is still a long way to go for the construction of decentralized exchange. In 3-5 years, traditional exchange will still be the main battlefield of digital currency

However, in the future, it is worth looking forward to let the decentralized digital currency get rid of the shackles of centralization

4. It can't be simply attributed to the exchange. Sometimes there are sudden short-term fluctuations, and the exchange does participate. But the main topic is about the monthly time span, which is difficult for the exchange to control. It is more the result of the joint operation of hot money and large institutions. However, the sharp decline of the overall currency value can't be separated from the basic economic principle: the relationship between supply and demand, This is beyond anyone's control

5. There are many ways to play digital assets, and the modes of each exchange are also different. At present, there are several mainstream models in the market:
1. OTC over-the-counter trading
OTC trading system provides information release places for buyers and sellers of digital assets. OTC market is easy to get acquainted with the previous over-the-counter trading mode, there is no fixed trading place, no fixed Trading rules, and no limited trading form
2. Currency transaction
currency transaction is mainly aimed at the transaction between digital assets and digital assets. One currency is used as the pricing unit to purchase other currencies. The currency transaction rule is also to complete the matching transaction according to the price priority and time priority
3. Perpetual contract trading system
perpetual contract is a derivative of futures cooperation. Like futures, it is a contract transaction, not a spot transaction. After you buy, you will not get digital assets. Development of digital asset trading platform, development of perpetual contract trading system
4. Digital asset mortgage system
digital asset mortgage system is a mortgage investment platform for global digital asset players, on which global players can mortgage certain digital assets.

6. It is true that there is such a situation. The way to make money with such a situation is called moving bricks
explain the situation with a simple example:
for example, the retail price of a watermelon in its procing area is 50 cents a catty. Here is not the wholesale price, but the price that people in the procing area buy when they want to eat a watermelon. So the watermelon in the city's high-end District supermarket selling price may be 1 yuan a Jin, why such a 5 Mao gap? In short, because of different locations, because the scarcity of watermelon is different
these virtual currencies may have different buying and selling prices on various platforms at any time, resulting in price differences in different regions.

7. Wait and see for a while. Choose a good wallet and deposit bitcoin first, such as coin paypal and coin bag

8. It's not true. Why is there such a saying. I am curious.

9. no Let's talk about the Ponzi scheme first. In short, Ponzi scheme is a kind of investment fraud. Many illegal pyramid schemes use this method to collect money. As the saying goes, it is "robbing the east to pay the west" and "cheating the white wolf with empty hands". Using the money of new investors to pay interest and short-term return to old investors, in order to create the illusion of making money, and then cheat more investment. Because of the early investment returns are rich, so you can continue to attract new people to come in to take the offer. Some time ago, a lot of P2P companies were Ponzi schemes. When the makers made a lot of money, they ran away and the investors lost all their money. Why, however, is bitcoin not a Ponzi scheme? The definition of the basic attributes of money in Economics: 1. Medium of exchange 2. Means of storage 3. Measure of value. Digital currency itself is the same as RMB and US dollar, that is, they do not exist naturally, because many people believe in it, and then set up order. Their essence is endowed with value by consensus group, because many people believe it is valuable. As bitcoin becomes more and more important as a measure of exchange and value, bitcoin will become the same status as today's legal currency, just like wechat payment E-wallet. Ten years ago, can you believe it or use it? However, no matter what you invest in, you should know that all financial instruments have risks, just as RMB and US dollar also have foreign exchange risks and depreciation risks. At the same time, we should choose a regular exchange. At present, there are many small exchanges for trading virtual currency, which are easy to be attacked by hackers. If it happens, it will cause heavy losses. At present, the mainstream bitcoin trades all Qube, okex, fire coin and so on. It's better to use a large exchange to ensure the security. Just like the difference between the four major state-owned banks and small banks, there is no user run in the former, even if there is a risk reserve, and once a run occurs in a small bank, it will go bankrupt.