Why is bitcoin universal

1. The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. 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 currency 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.

2. The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. 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 currency 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

according to the notice on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China. According to China's digital currency regulatory framework, investors have the freedom to participate in digital currency transactions at their own risk

warm tips: the above information is for reference only. Before investing, it is recommended that you first understand the risks existing in the project, and understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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3.

According to analysts at Goldman Sachs, bitcoin can become a legal and widespread form of currency, but it is mainly possible in theory

Analysts believe that the reality is that cryptocurrency still has a very high threshold in most places. First, the government cannot track who is buying or selling bitcoin. And as we all know, the price of cryptocurrency is very vulnerable to large fluctuations. This volatility is very rare in legal tender, so bitcoin is not suitable to be a reserve currency

4.

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 unique

What 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

5.

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

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6. Germany is the first country in the world to recognize bitcoin. It stipulates that citizens can use bitcoin to pay taxes or use it for other purposes. After that, France, Britain, the United States and other European and American countries have followed suit. However, in China, it is still not allowed. It can only be played on trading platforms such as fire coin and BTCC.

7. No one will admit that a currency supported by a country does not necessarily make it recognized by the global market. As a common currency, the US dollar's competitors in the world still have euro, pound, RMB, yen and other complex economic systems, while bitcoin has no guarantee behind it. It is widely recognized that gold reserves, technical content, economic aggregate, military strength, national reputation and so on are the direct factors to measure whether a currency will be accepted by the world. If there is a war, who will use your virtual currency to trade arms, grain and technology. Therefore, bitcoin, as a global unified virtual currency, is only used at the virtual level, legalized or licensed, just like the current q-coin. However, to really apply it to real life, more people and more money must be invested in order to initially establish small-scale goods trading. Large scale, such as oil, instry, machinery, shipbuilding, aerospace, weapons, Large Hadron Collider, particle accelerator, Tokamak device, and even the basic necessities of people all over the world, you will find how ridiculous it is to use virtual currency. Even if it is possible, it will take time to accumulate. Only when people invest hundreds of years of money into bitcoin, which is more than the wealth in the hands of today's global people, can it be stabilized. The gains outweigh the losses, which is more difficult than global unification. Even if the as like as two peas in the world, the same currency will exist, and the existence of the same currency will be the same as that of online banking.

8. Trust! For example, why do you believe that airplanes can fly? Trust
if everyone trusts him, it can be used as money.

9. Because stir fry can make money, take a chestnut, a businessman went to a mountain village, the mountains around the village are full of monkeys. The merchant and the farmers in the village said, "I'll buy a monkey for 100 yuan.". The villagers didn't know whether it was true or not. They tried to catch the monkey, and the merchant gave them 100 yuan. So the whole village went to catch monkeys, which was much more cost-effective than farming. Soon the merchant bought more than 2000 monkeys, but there were few on the mountain. At this time, the merchant offered 200 yuan for each monkey. When the villagers saw that the price of the monkey had doubled, they went to catch it. The merchant bought it again, but it was very difficult to catch the monkey. The merchant offered another 300 yuan to buy a monkey, but the monkey could hardly catch it. The merchant offered 500 yuan for each monkey. There are no monkeys on the mountain. More than 3000 monkeys are here. One day, when the merchant came back to the city, his assistant went to the village and said to the farmers, "I will sell you monkeys for 300 yuan. When the merchant comes back, you will sell them for 500 yuan, and you will be rich.". The villagers were crazy. They smashed the pot and sold iron. They collected enough money to buy all the more than 3000 monkeys. The assistant left with the money and the businessman never came back. The villagers have been waiting for a long time. They firmly believe that the businessman will come back and buy their monkeys for 500 yuan. Finally, someone can't wait any longer. The monkeys still have to eat fruit and bananas. There's a cost. They can only put the monkeys back on the mountain, which is still full of monkeys.

10. The total value of bitcoin is only US $16 billion, and the global assets are far more than US $16 billion
in addition, bitcoin lacks government guaranteed credit.