What are the risks of bitcoin and private digital currency
1. The concept range is different. bitcoin is a kind of digital currency, and the concept of digital currency covers bitcoin
However, some digital currencies have independent issuers The biggest difference between bitcoin and other virtual currencies is that the total quantity 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 milliondigital currency is abbreviated as digiccy, which is the abbreviation of "digital currency" in English. It is an alternative currency in the form of electronic currency. Both digital gold coin and cryptocurrency belong to digiccy. Bitcoin is a digital currency
digital currency is different from the virtual currency in the virtual world, because it can be used for real goods and services transactions, not limited to online games. The early digital currency (digital gold currency) is a form of electronic currency named after the weight of gold
today's digital currencies, such as bitcoin, lettercoin and ppcoin, are electronic currencies created, issued and circulated by means of check sum cryptography. It is characterized by the use of P2P peer-to-peer network technology to issue, manage and circulate currency. In theory, it avoids bureaucratic examination and approval, so that everyone has the right to issue currency
illegal digital currency
in recent years, "virtual currency" represented by bitcoin, Ethernet currency and Leyte currency has been traded centrally on some Internet platforms. With the help of financial technology, the price of these "currencies" has graally spread to investment, financing and other financial fields, which has aroused wide attention from all walks of life
not long ago, the people's Bank of China and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly regulated the relevant behaviors. Experts pointed out that "virtual currency" is not legal tender (legal currency) issued by monetary authorities, but a specific virtual commodity in essence
therefore, it is undoubtedly a great legal and economic risk to think that "virtual currency" has or will have the nature of legal tender and to carry out speculation, network fund-raising, lending and financing
Yin Zhentao, deputy director of the law and Finance Research Office of the Financial Research Institute of the Chinese Academy of Social Sciences, said that digital currency faces two risks. The first is the technical level. Digital currency relies on blockchain technology and a system, which will make it suffer from security impact, such as hacker attacks on computer systems. We have seen many practical problems in this process
Zhao Zhanzhan, a special researcher of intellectual property research center of China University of political science and law, believes that digital currency has anonymity, quickness and irrevocability. In addition, bitcoin and other digital currencies have high circulation in the world, so many criminals use digital currency as a new money laundering channel. Moreover, there are many different ways to realize money laundering through digital currency. Generally speaking, the probability of new money laundering being found and investigated is lower than before. Many countries have no effective means and technology to combat money laundering through digital currency. These factors lead to criminals prefer this way of money laundering
digital currency is a kind of unregulated and digital currency, which is usually issued and managed by developers and accepted and used by members of specific virtual communities. The European Banking authority defines virtual currency as a digital representation of value, which is not issued by the central bank or authorities, nor linked with legal currency. However, because it is accepted by the public, it can be used as a means of payment, or it can be transferred, stored or traded in electronic form
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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To guard against the possible risks brought by bitcoin, we know that digital currency represented by bitcoin has high risks. This kind of risk is mainly reflected in two aspects: first, the limitation of digital currency makes it used as investment goods, and the price is extremely unstable. Those who do not understand the principle of digital currency and pay too much attention to speculation are easy to suffer losses for various reasons
Secondly, national digital currency is linked to its own legal currency to a certain extent, so it effectively avoids the price volatility of bitcoin. Because the CBDC issued by our country is guaranteed by the credit of the central bank, it must be a stable currency. In today's international situation, the research and development of digital currency in China is of great significance. The introction of digital currency is not an expedient measure, it has become the development direction of China's future currencyWhen bitcoin was first launched, a bitcoin could not buy a hamburger, but now a bitcoin can buy a car, which is the violence of virtual currency. The virtual digital currency led by bitcoin has let many investors see the dawn{ RRRRR}
we all like to save money, at most for a fixed period. A few people buy stocks, let alone virtual digital currency
the biggest risk of digital currency is instability. It is not a currency recognized by the International Monetary Fund. Bitcoin can not be traded directly, nor can it be used to buy things directly, because the number of bitcoin is limited. Therefore, many people feel that it is necessary to invest
and now many countries prohibit the transaction of virtual currency, because digital currency helps money laundering. Many people launder money through digital currency to evade supervision. Once the government finds it illegal, it will be unfavorable for the trend of digital currency
there is a lot of uncertainty in digital currency, and the biggest fear is the collapse of the whole system. In the end, there is nothing left, so there are risks in investment
hash value of previous block: prev_ Hash
the hash tree value of the transaction to be written: Merkle_ Root
update time: ntime
current difficulty: nbits
the process of mining is to find x to make
sha256 (version + prev)_ hash + merkle_ root + ntime + nbits + x )) < Target
the range of X in the above formula is 0 ~ 2 ^ 32, which can be calculated according to the current difficulty. In addition to x, you can also try to change Merkle_ Root and ntime. Because of the hash feature, finding such an X can only be brute force search
once you find x, you can broadcast a new block, and other clients will verify whether your block is legal. If your block is accepted, the first transaction in each block must be to send the newly generated 25 bitcoins to an address. Of course, you will set the address to your own address to get the 25 bitcoins< Every transaction record of bitcoin from the beginning to now has been saved on the network. The whole bitcoin network maintains a huge transaction record file (about 12g now). The average update cycle of this file is 10 minutes. The newly added transaction record is called a block, and this huge file is composed of a series of blocks, called block chain.
Why are 25 bitcoins
this is the rule. At first, there are 50 bitcoins. For each half of the remaining bitcoins, the income will be halved. In this way, the total amount of bitcoins that can be generated will approach 21 million. If you still claim to have g up 50 bitcoins, it will not be accepted by other clients, and the block will be g up in vain
how to ensure that the average update cycle is 10 minutes
the smaller the target, the more difficult it is to solve X. for every 2016 blocks (about 14 days) generated, the network will adjust the target according to the average interval of new blocks generated ring this period
is it the fastest person who always solves it first
No. You always want to take the mining income as your own, so when everyone calculates, the address to send the mining income is different, so Merkle_ Root is different, that is to say, everyone starts to solve from a different initial state
how to solve it at the same time
there will be a fork in the block chain. Some clients accept a and some accept B. until a branch becomes longer, everyone will choose the longer branch. If what you dig is unfortunately not selected, your mining income will be invalid
since I choose a longer branch, how can I solve it with very low difficulty
the client finds the most difficult and longest branch among many branches
are these calculations wasted
if you want to spend a sum of money twice, you need to do so. Dig a new block, but hide not broadcast, and continue to mine. Find merchant a, pay bitcoin, and let others on the network dig the block and write the transaction record. Find merchant B, pay bitcoin, and write the block you g. If you can get two blocks first and broadcast them, everyone will take your longer branch as the current block chain, and the bitcoin received by merchant a will not be recognized. In this way, the probability of successful attack depends on the speed of hash calculation. If the computing power of the whole network is high enough, the success rate of such attacks is very low or the cost is very high.
bitcoin itself is not a currency in China and will not compete with the digital currency launched by the central bank. The digital currency to be issued by the central bank is just the digitization of RMB, as is the younger brother of bitcoin such as Ruitai and Laite. At this stage, bitcoin has been clearly defined as a special Internet commodity in the notice, and the central bank has issued the bitcoin risk notice at the end of 2013