Advantages of virtual currency investment
Background: the financial application of blockchain technology brings high investment value
2018 China international big data instry Expo opened in Guiyang City, Guizhou Province on the 26th. At the meeting, it was pointed out that China will vigorously develop the digital economy in the future, deeply implement the action plan for the development of big data and cloud computing, and deeply study blockchain technology and application. Especially in the field of finance, the landing application has become the focus of the scientific and financial circles
1. The value source of blockchain is that it can perfectly solve the pain points of the current financial instry:
in today's asset securitization, insurance, supply chain finance, commodity trading, asset custody and other financial scenarios, e to many participants, high cost of credit evaluation, low settlement efficiency of intermediary institutions and other reasons, Traditional financial service methods are difficult to effectively solve the long-standing core pain points in the instry, such as information asymmetry, complex and rendant processes, and high information verification cost
2. Why can blockchain solve the above pain points:
blockchain technology integrates many basic technologies, such as distributed accounting, tamper proof, built-in contract, etc., and constructs a trust building mechanism with lower cost. The financial application based on blockchain technology can realize the ability of all market participants to obtain all transaction information and asset ownership records in the market without discrimination, and effectively solve the problem of information asymmetry; Smart contract embedding reces the error rate of payment and settlement, simplifies the process and improves efficiency; At the same time, based on transparent information and brand-new trust mechanism, there is no need to spend manpower, material resources and financial resources to confirm information among participants, which will greatly rece the trust cost between institutions, and then rece the price of financial services and transaction costs
3. The application of blockchain technology in the financial field mainly includes the following aspects:
among which bitcoin is the most famous. On the basis of bitcoin, a large number of other types of decentralized digital currencies have been derived. Such as: the heyday of bits
Compared with the traditional payment system, blockchain payment can directly carry out end-to-end payment for both parties without the help of the banking system, which can greatly improve the speed and rece the cost③ digital bills
④ bank credit management: the advantage of blockchain is that it can rely on program algorithm to automatically record credit related information and store it on every computer in the blockchain network, with transparent information, tamper proof and low cost
The major financial institutions and exchanges in Europe and the United States have explored the application research of building the next generation of financial asset trading platform based on blockchain technology4. The development prospect of blockchain. The future development of blockchain technology will have the most vitality with alliance chain as the entry point, and will have a significant effect and far-reaching impact on the transformation of traditional financial instry pain points
in response to the good investment prospects of blockchain, domestic enterprises such as Alibaba, Jingdong and Netcom have entered the market. The application of financial scenarios based on blockchain technology not only brings us security and convenience, but also provides us with broader investment space. The rise and price surge of digital currency represented by bitcoin (bitcoin was about RMB 20 cents when it was first listed in 2009, and its current price is about US $7300!) It's the best proof that people with a keen sense of smell have made a lot of money from it
Abstract: This is an encrypted digital currency based on the bitcoin developed by Nakamoto Tsung, which improves and adds many new functions, such as the double-layer reward system network, also known as the main node network. It also includes anonymous payment to improve the interchangeability (bitage) and real-time payment function docking to realize real-time transaction confirmation without relying on the authority of the center (P2P mall) In 2009, Nakamoto put forward the concept of bitcoin. Since then, bitcoin has spread rapidly in mainstream applications and commercial uses, becoming the first digital currency to attract a large number of users, which is a milestone in the history of digital currency. However, from the perspective of completing the transaction, we can find an important problem, that is, it takes too long for bitcoin block to confirm the transaction. Traditional payment companies have found a solution to enable the buyer and the seller to realize zero confirmation of bitcoin transaction, but this solution usually requires a trusted third party to complete the transaction outside the agreementbitcoin provides pseudonym transaction, realizes the one-to-one transaction relationship between sender and receiver, and can always record the transactions occurred in the whole network. Bitcoin only provides low-level privacy protection, which is well known in academia. Despite this deficiency, many people still believe in the transfer history recorded by blockchain
based on Nakamoto's achievements, bitshengshi is an encrypted digital currency with the purpose of protecting privacy. We have made a series of improvements on the basis of the concept of bitcoin, resulting in a decentralized cryptocurrency with good anonymity. It supports tamper proof real-time transactions, and has a point-to-point sub network that can provide service reward system for bitsheng network
2. Master node network
the whole node is the server running on the P2P network, so that small nodes can use them to accept the dynamic changes from the whole network. These all nodes need significant traffic and other resources that consume a lot of cost. Therefore, it will be observed that the number of these nodes on the bitcoin network presents a steady downward trend over a period of time, so that the block broadcast time needs an additional 40 seconds. In order to solve this problem, many solutions have been put forward, such as the introction of Microsoft Research's new incentive plan and bitnodes incentive plan
Figure 6: mining reward model
if you want to develop it, I suggest you take a look at Chongqing anonymous technology, which is doing a lot. Exchanges, wallets, games
bitcoin, as a kind of network digital currency, can be said to be liked by many people, because for many people, bitcoin will bring high profits to themselves, but we will crack down on such things, and such procts will be suspected of illegal fund-raising or money laundering to a large extent
it is very difficult to supervise bitcoin, because bitcoin is a kind of virtual network digital currency, so it will be very difficult to manage the behavior of many people's speculation on bitcoin. Although we often stop such behavior, people's interest is very big, In many cases, it can be said that it is because of their own interests that they will suffer losses{ RRRRR}
you must pay attention to your own safety when carrying out online trading, and do not believe in any online investment and online stock speculation
the United States is the country with the most coal in the world, because there are many mountains with a lot of coal reserves in their country for example, these mountains with rich coal deposits have been extending from Canada to Alabama for more than 3200 kilometers. It's hard to imagine that such a long mountain line is rich in coal, accounting for 27.6% of the world's coal, so the United States is the country with the largest coal reserves{ RRRRR}
even with such abundant coal resources, we should make rational use of them and maximize their utilization of course, the surrounding ecological environment should also be taken into account, so as not to cause serious environmental problems. In fact, many animals and plants around these mining areas have been greatly damaged
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not easy to lose
the total number is about 21 million
the essence of bitcoin is a solution to a specific system of equations. According to the design of bitcoin, the total number of solutions is about 21 million, that is to say, the total number of bitcoins is about 2100, which determines that bitcoin is inherently anti inflationary and has considerable collection value (there are only 21 million in the world), first come first served< At present, all countries and regions in the world, from the government and the central bank to the people, have shown great interest in bitcoin. In fact, Germany has become the first country to legislate to protect bitcoin. In other European countries, such as the UK and France, bitcoin has graally become popular. In the UK, there are even special ATMs for bitcoin. The wide application of bitcoin also ensures its strong global liquidity, which further reces the investment risk<
two way investment
both rising and falling prices can make profits
as we all know, spot trading can only rely on rising prices to obtain trading profit margin. Bitcoin spot transaction can achieve two-way transaction through financing. When the price is bullish, bitcoin can be bought by financing to make profits. When the price is bearish, bitcoin can be sold by financing to make profits<
the transaction is not limited by time
24 hours a year
1. Save money and lower transaction fees
in the process of changing currency with legal tender as the intermediary, two hand changing operations are required, and the handling charge is the sum of the two hand changing operations
for example, if a user wants to exchange eth for BTC by legal tender, he needs to first exchange eth for CNY, and then exchange CNY for BTC. The transaction cost of the whole process is about 0.4%. If the user changes eth to BTC directly through currency transaction, it only needs to change hands once, and the handling charge is only 0.2%, which is half cheaper instantly
2. Faster and timely response to the market
in the process of changing currency with legal tender as the intermediary, two hand changing operations need to be performed, and the time spent is also the sum of the two hand changing operations. People who have invested in digital assets such as bitcoin, lightcoin and Ethereum all know that the market of digital assets comes and goes fast. If you change eth to BTC directly through currency transaction, you only need to change hands once.