In depth analysis of bitcoin

1. bitcoin is different from the previous currency, it completely relies on the Internet to create and trade; Bitcoin's unique technical attributes lead to its economic and cultural attributes beyond the present currency. Bitcoin is a kind of electronic currency proced by open-source P2P software. Compared with the paper currency in circulation, the biggest feature of bitcoin is decentralization and global circulation in the network world, followed by high security and high confidentiality. These technical attributes further extend to the economic attributes of no inflation, no freezing, and no man-made supply; In terms of culture, bitcoin is popular among anarchists and liberals. The advantages of bitcoin are artificially exaggerated, and its anti inflation and anti inflation functions cannot stand up to scrutiny. In the long run, the prospect of bit is hard to match that of gold. In the most optimistic case, it will become a means of payment in some areas; But in the short and medium term, bit still has room for speculation and imagination. In addition, the use of bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security
1. The advantages of bitcoin are exaggerated: About decentralization, no transaction costs and anti inflation
it is true that bitcoin has various advantages over paper money, but these advantages have been over interpreted. First of all, bitcoin is a kind of decentralized currency, which will not have the same risk of central bank controlling money supply and affecting market value as paper money; Bitcoin is mainly held in the hands of large investors, and the market depth is not enough. At present, the trading behavior of large investors is also very easy to affect the price of bitcoin. Even if the attribute of decentralization is regarded as the advantage of bitcoin when it is fully mature, then the prerequisite of holding decentralization should be added. In addition, there are great differences between centralized and decentralized online payment systems in the degree and type of financial risks they are exposed to
secondly, the low transaction cost of bitcoin is not without transaction cost. On the contrary, e to the increasing difficulty of bitcoin mining and the further stability of currency value, the dependence of relevant transaction platforms on transaction cost will increase, which will certainly increase the transaction cost. Finally, the confidentiality of the bitcoin transaction needs to be discussed. The principle of the bitcoin transaction makes all the processes of each bitcoin transaction stored in each machine. If someone can determine the real background of a transaction, they can find all the transactions down and up through these data
compared with other advantages, anti inflation or anti inflation is the most publicized advantage. Although its supply is stable and the upper limit of supply is locked according to its algorithm, unless the whole world is unified and all countries use bits as currency, it can not prevent the over issuance of money only as a means of payment or a storage of value, just as the current existence of gold can not constrain the growth of each country's currency. If bits can only be used as a means of payment in local areas (such as the network), then global or some countries' inflation will still be transmitted to the areas where bits are used. Therefore, the use of bits to prevent inflation is basically untenable, or has a strong premise. As for anti inflation, that is to say, it has the function of value storage, it needs to have the property similar to gold. However, from the reality, bit's essential property and prospect are still hard to match gold. See below for details
2. Bitcoin's future positioning is too high
the expectation of bitcoin's future in the market generally compares it with gold and US dollar, which is relatively high. The recognition of gold not only lies in its natural physical properties, but also in its official acceptance as a reserve currency (or an important allocation of foreign exchange assets). In theory, bitcoin as an electronic currency does not have the unique and exclusive status, and it is more difficult to become the official reserve of central banks like gold. Therefore, it is not appropriate to expect too much bit. As an electronic currency, bit has the first mover advantage. If it can be guaranteed in terms of security, its most optimistic prospect will be as a means of payment in local areas
3. Speculation and speculative demand caused by event factors are the main reasons for the rise of bitcoin in this round
under the credit currency system, people's lack of confidence in the currencies of various countries and pessimistic economic prospects are the general environment for the rise of bitcoin in this round. The speculation of the major dealers in the market and the derivatives market of bitcoin, together with the speculative psychology of the participants, further accelerated its rise. Btcchina's investment of US $5 million and the announcement of Ben's position are the main driving factors for the recent surge
however, a lot of big players start to enter the market and buy a lot, which not only drives the bit price up to a high level, but also increases the market risk. Chamath, a former Facebook executive, has spent $5 million on bitcoin and plans to spend another $10 million. Bitcoin investment trust also exceeded its target within four weeks, raising $15 million. These people's investments not only make bitcoin further rise, but also concentrate on the holding of bitcoin, which strengthens the influence of indivials and institutions on the price of bitcoin and increases the market risk
4. There is still strong room for speculation in the medium and short term
although our previous analysis is not optimistic about the prospect of bit, it is likely that bit will still have strong room for speculation in such a short and medium term period of time as one year. As mentioned in the previous analysis, the creators of bitcoin advocate that the generation of bitcoin is not manipulated by human factors, which is quite different from the credit currencies of various countries. We expect that the monetary policies of major countries will be divided next year. With the release of economic risks and the heavy damage to traditional asset markets, bitcoin will have better room for speculation and imagination< The use of bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security
the U.S. government seized the drug trading website "Silk Road" at the beginning of last month. A crowdfunding network called "assassination market" even marked the sale of murderers with bitcoin price. The founder of the assassin market, under the pseudonym of kuwabatake Sanjuro, is an extreme anarchist. Both prism gate incident and the use of bitcoin in relevant sensitive fields highlight the increasingly prominent position of information field in national security. The Third Plenary Session proposed the establishment of the national security committee, which will play an important role in China's security strategy and expand from traditional national defense, stability maintenance / urban security to information security and other emerging areas

2. Hello, the miner trusteeship depends on the situation
if there are only one or two miners, you can choose to dig at home, rent an empty house in a slightly larger remote point, and use it as a special machine room, so that the miner will not disturb the people and it is convenient for you to visit at any time
if there are dozens or even hundreds of mine machines, it is recommended that you choose mine trusteeship. First, the electricity charge of mine trusteeship will be cheaper than that of indivials, and there are special personnel to take care of mine machines. The inconvenience may be that most of the mines are located in Northwest and southwest provinces, which may not be convenient for you to understand the actual situation, but you can also choose the background software to monitor your own mine machines, The selection of specific mines can be evaluated according to the quotation
if you don't know much about this area before and don't have a miner, you can choose to buy cloud computing power. This kind of miner is only used in a different way. The ownership of the miner doesn't belong to you, but is rented to you

the advantage of the mineral machinery trusteeship lies in the fact that it is not easy to manage; Annual regular electricity subsidies, cheap electricity; 24 hours a day without power cut to dig money; There is operation and maintenance technology in the mine 24 hours on call, problems can be solved immediately; If the power board is broken, it needs to be returned to the factory. The company will have machines to make up the power. However, it is suggested that when you choose a mine, you should consider the quotation of mine management fee and electricity fee
if you have any other questions, please ask me. I hope I can help you, thank you!

3.

We will pay close attention to the instry value points, constantly screen, refine and optimize, and provide the most needed, useful and important content for community players Fenghuolun blockchain

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it's time for all instries to write their year-end summary again, but the year-end summary of the currency circle may be as follows:

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to be honest, when bit30000 soft coins, Xiaobian has already felt beyond imagination, not to mention now the price is not dare to see. As soon as the price comes up, although the dispute is still very big, more and more people pay attention to it. For example, the following question on Zhihu has been followed by more than 1000 people and browsed more than 500000 times

What do you think of this question? When and how did you know about bitcoin

there are all kinds of discussions at the bottom of this post. Although a good study and work does not affect the holding of bitcoin, Xiaobian, from his own point of view, did not know bitcoin at that time because he did not do his job properly

however, this question may also be a false proposition, such as the following answer:

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it would be nice if the" poor people "who used to get twice as much. Unless they really inlge in work and forget it, there are too few people who can insist on getting the present, And the person who can really get the present, maybe he is not short of money, otherwise he will exchange bitcoin for other things for various reasons

do your relatives and friends know about bitcoin? Do you have any friends who have taken it for several years

however, this post may have overlooked one thing, that is, it may be easier to rely on counterfeit money for financial freedom. About a year and a half ago, bit3000 was about 40 times as much as now. However, at that time, the number two Wright was just over 20, which has increased by 70 or 80 times. What's more, such as quantum chain, crowdfunding in March this year has increased 170 times

who do you want to argue with

so it's true that every time the market is good, all kinds of crowdfunding will be crazy, and new projects will always give people a lot of imagination

a lot of big currencies like bitether, including the top currencies in market value, have experienced the test and precipitation of time; And new or small currencies, although they have strong explosive power, have a strong speculative atmosphere. When the tide goes down, you can see who is swimming naked. This is also the reason why many old players stay in the mainstream currency

recently, the mad cow is on the way, and each group is quite busy, but Xiaobian is still here to remind you, pay more attention to risks, eat and sleep on time, and hope that everyone can go to the peak of life

so do you think it would be better to hold bitcoin or counterfeit coins? Or what do you think of those who rely on bitcoin for financial freedom? Welcome to leave a message below~

4. Bitwisdom's computing power is slightly lower than 950th / s. at the time of writing, bitwisdom means 955th / s. Bitcoincharts is a bit lower, about 847.25th per second (it dropped to 802 at the end of this article). You can calculate according to this, and the above is the number of 2013

5. There is a lot to know about bitcoin, and its hidden functions are still under development, with new information every day
for application examples, you can search: cross border remittance application bitpesa in-depth evaluation

6. Market depth refers to the ability of the market to withstand large transactions without significant fluctuations in the price of bitcoin
we suggest that you choose the exchange with better market depth. Trading depth has two advantages:
1. The market price is relatively more stable in large trading
2. The cost of large trading is also lower

7. The trading depth of an exchange is an indicator of market liquidity. In a word, the better the depth, the faster the transaction speed.

8. Look at the platform. The depth of okex is not bad

9. BCC's price surge is mainly determined by the following factors:
1. BCC and BTC have almost the same user base and are supported by a wide range of exchanges and wallets
2. The price of bitcoin has exceeded the 40000 yuan mark recently, and the value of BCC is seriously underestimated
3. BCC network tends to be stable graally, which frustrates various conspiracies and enhances the community's confidence in BCC
4. The core development team tried to break the New York consensus, and the community turned to BCC out of concern about the future of bitcoin
5. BCC has strong community support. Under the good news that more and more enterprises choose to support BCC, it is only a matter of time for Bcc to soar
6. BCC adheres to the idea of Nakamoto Tsung and solves the long-standing congestion problem of bitcoin in large blocks immediately.