Bitcoin, the next currency

1.

According to the currency conversion ratio on October 22, 2020, one bitcoin = 86214.10 RMB

compared with fiat money, bitcoin does not have a centralized issuer, but is generated by the calculation of network nodes. Anyone can participate in the manufacture of bitcoin, and it can circulate all over the world. It can be bought and sold on any computer connected to the Internet. No matter where they are, anyone can dig, buy, sell or collect bitcoin, And in the transaction process, foreigners can not identify the user's identity information

whenever bitcoin comes into the view of mainstream media, mainstream media always ask some mainstream economists to analyze bitcoin. Earlier, these analyses focused on whether bitcoin was a scam. Now the analysis focuses on whether bitcoin can become the mainstream currency in the future. The focus of the debate is often on the deflationary nature of bitcoin

extended information:

purchase method:

users can buy bitcoin, at the same time, they can also use the computer to "mine" bitcoin according to the algorithm. When users "mine" bitcoin, they need to use the computer to search for 64 bit numbers, and then compete with other gold miners by repeatedly solving puzzles to provide the required numbers for the bitcoin network. If the user's computer successfully creates a set of numbers, then they will get 25 bitcoins

e to the decentralized programming adopted by the bitcoin system, only 25 bitcoins can be obtained every 10 minutes, and by 2140, the maximum number of bitcoins in circulation will reach 21 million. In other words, bitcoin system is able to achieve self-sufficiency, resist inflation through coding, and prevent others from destroying these codes

2.

Many people think that the reason why bitcoin is valuable is because it is "rare", and if bitcoin is no longer "rare", then it will not have value

this is a misunderstanding. Let's consider a question: what is the essence of all "currencies"

the answer is trust. The biggest reason for the value of the dollar is because of the credibility established for the dollar under the Bretton Woods Agreement, rather than the so-called equivalent exchange with gold (although others say so). The main reason why RMB is valuable is because of the trust system of RMB in China and neighboring countries, rather than the exchange with us dollar reserves (see offshore RMB). This can explain why the currencies of some countries (such as the ruble of Russia, as well as the Zimbabwean currency as you all know) have been greatly devalued, because the government and the current world situation have led to a trust system that does not support the existence of this currency. The so-called economic sanctions and currency speculation are very superficial and superficial reasons

the essence of money is trust

What about bitcoin

bitcoin has no centralized Trust Measurement institution. The value of bitcoin, namely its "credit system", comes from distrust of centralized units. Every country finds that seigniorage is too easy to collect, which leads to the increasingly poor trust between countries. Even the people of all countries do not trust the national currency

and trust, like quality, is conserved. Trust in centralized money decreases, while trust in decentralized money increases naturally

this is the essential reason why the value of bitcoin continues to rise. Therefore, for digital currencies such as bitcoin, there are only two outcomes. Either countries want to understand that they will no longer issue excess currencies, issue additional currencies in a scientific and reasonable way, unify stable exchange rates, and maintain the credit system of centralized currencies, then the value of bitcoin will be infinitely close to zero. Or countries will continue to drink water to quench their thirst, and more frantically use the method of issuing excess currency to collect seigniorage from everyone, then the trust in the centralized currency will be lower and lower, and the total value of bitcoin, a decentralized currency, will be infinitely close to the gross labor value of all the units that do not trust the government and other governments, but need international trade

either the price is crazy or it's worthless

after understanding these, we can answer this question. Will bitcoin be replaced by other digital currencies

swindlers like * * and even the old Wang next door can come and yell, "I spent 10 minutes to change bitcoin's core and create a new digital currency called SBC. Come and join my ICO and pay me seigniorage ~". So, if this happens, will you immediately choose to use Lao Wang's SBC next door

the answer is that some speculators will participate, but the market will not. The reason is very simple, the new cryptocurrency has not been recognized by the market, the application has not been proced, this kind of currency has no way to exchange for means of proction. Then this kind of currency is not money, but a virtual commodity for speculation. In other words, even if old Wang ICO next door has an SBC, no one will choose this kind of currency except those speculators who have no brains

in the current market, there are many other digital currencies, such as Ethereum, EOS, XRP, and so on, which may have technological advantages in some aspects (in fact, BTC has been evolving, and it will also learn from the advanced technologies of other digital currencies that have been successfully proved by the market. LTC and other currencies can be said to be the experimental currencies of BTC's advanced technologies.), There may be more application scenarios than BTC in the future, but they are not likely to challenge the status of BTC. BTC will always be the first consensus in the currency circle, which is the belief of many people. BTC will exist for a long time as the gold in the currency market, not mainly for the circulation of digital currency

3. 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 specific currency institutions. It is generated by a large number of calculations based on specific algorithms. 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. 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 about 21 million

from 12:00 noon on January 24, 2017, China's three major bitcoin platforms officially began to collect transaction fees

on September 4, 2017, the central bank and other seven ministries and commissions announced that China banned virtual currency trading

on December 17, 2017, bitcoin reached an all-time high of $19850

on November 25, 2018, bitcoin fell below the $4000 mark and is now stable at more than $3000.

in April 2019, bitcoin again stood at the $5000 mark, reaching a new high of the year.

4. Digital currency and Internet of things complement each other. Digital currency generally refers to bitcoin, lightcoin, decent, dogcoin and other encrypted digital currencies. The Internet of things is an important part of the new generation of information technology, and also an important development stage of the "information" era. Its English name is "Internet of things (IOT)". As the name suggests, the Internet of things is the Internet of things. This has two meanings: first, the core and foundation of the Internet of things is still the Internet, which is an extension and expansion network based on the Internet; Second, its client extends to any goods and goods, information exchange and communication, that is, mutual information. As the name suggests, the Internet of things is the Internet of things. This has two meanings: first, the core and foundation of the Internet of things is still the Internet, which is an extension and expansion network based on the Internet; Second, its client extends to any goods and goods, information exchange and communication, that is, mutual information. There are three key technologies in the application of Internet of things: sensor technology, RFID tag and embedded system technology. The Internet of things has a wide range of uses, including intelligent transportation, environmental protection, government work, public safety, safe home, intelligent fire protection, instrial monitoring, environmental monitoring, street lighting control, landscape lighting control, building lighting control, square lighting control, elderly care, personal health, flower cultivation, water system monitoring, food traceability Enemy intelligence investigation and intelligence collection. The Internet of things will be the next "important proctivity" to promote the rapid development of the world and another trillions market after the communication network. The existing Internet of things in China is not equal to digital currency, but they are also related. The Internet of things is an important part of the new generation of information technology, and also an important development stage of the "information" era. Its English name is "Internet of things (IOT)". As the name suggests, the Internet of things is the Internet of things. This has two meanings: first, the core and foundation of the Internet of things is still the Internet, which is an extension and expansion network based on the Internet; Second, its client extends to any goods and goods, information exchange and communication, that is, mutual information.

5. There is no need to specify the browser, as long as you enter the official website of star guest, you can access it in any browser normally.

6. Bitcoin is a digital currency designed by Nakamoto in January 2009. Bitcoin enables users to complete payment in a decentralized, peer-to-peer network, without requiring a central clearing center or financial institutions to clear transactions. Users only need internet connection and bitcoin software to pay to another public account or address
compared with fiat money, bitcoin does not have a centralized issuer, but is generated by the calculation of network nodes. Anyone can participate in the manufacture of bitcoin, and it can circulate all over the world. It can be bought and sold on any computer connected to the Internet. No matter where they are, anyone can dig, buy, sell or collect bitcoin, And in the transaction process, foreigners can not identify the user's identity information[ 1]

because it's an internet symbol, it doesn't matter what country it is. And it has value only because of speculation. In fact, it can't be regarded as currency.

7.

Bitcoin is an electronic currency, which is based on cryptography. On November 1, 2008, Nakamoto Tsung published a white paper on bitcoin, in which a decentralized electronic accounting system was proposed. Our usual e-cash is recorded by banks, because behind the bank is the national credit. Decentralized electronic bookkeeping system is the common bookkeeping of participants. Bitcoin can prevent sovereign crisis and credit risk{ RRRRR}

the principle of bitcoin generation is the special solution generated by complex operation, and mining is the process of finding the special solution. However, the total number of bitcoin is only 21 million, and with the continuous mining of bitcoin, the more difficult it will be to proce bitcoin, and the cost of acquiring bitcoin may be higher than the price of bitcoin itself. Bitcoin is a kind of virtual currency, its issuance does not rely on any institutions; Now it's ready to trade, and it supports global 7 * 24 trading. It should be noted that the price of bitcoin fluctuates greatly. Ordinary investors have no ability to buy and sell. It is very difficult for many investors to grasp the price of bitcoin