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2. How to use the three technical indicators to understand the rise and fall of bitcoin

coincola coying Cola
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how to use the three technical indicators to understand the rise and fall of bitcoin
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recently, "bitcoin broke through $8000" has been on the hot search. For a while, bitcoin rose, reborn rose sharply, and Ethereum led the rise... A week later, this big play dominated by bitcoin didn't seem to come to an end, and the trading volume was once pushed up to 100 billion US dollars

in the investment world, "madness" and "fear" coexist. Today's "madness" stems from last year's long-term "fear". However, this time, coincola Cola Research Institute tracks and analyzes the technical indicators behind the rising market, and deconstructs the "passion" of the market with the "rationality" of data< (1) mining and bitcoin price

start with the relationship between mining and bitcoin. The core technology of bitcoin is "blockchain", which is connected by blocks. Each block corresponds to a bill. All transaction information and transfer records of bitcoin are recorded on the blockchain. Every other point in time, the bitcoin system will generate a random code on the system node. Due to distributed accounting, all computers on the Internet can search for the code. Whoever finds the code will generate a block and then get bitcoin. This process is mining. Calculating this random code requires a lot of GPU operations, so miners need to use mining machines with massive graphics cards to make profits

1. Bitcoin computing power: starting to pick up

remarks: June 2018-may 2019 bitcoin hash value

data source: bitcoin visual, coincola Research Institute

the above figure shows the bitcoin hash value. The hash value of the bitcoin network represents the computing power of the blockchain. The growth of computing power means that miners increase mining investment or increase the number of miners. Since the second half of 2018, the hash value has recovered from falling back to picking up, from 32eh / s at the end of the year to 50eh / s now, and the recent growth trend is remarkable. The continuous growth of bitcoin hash value (representing computing power) indicates that the market is optimistic about the future of bitcoin

2. Mining difficulty: stepped up

remarks: bitcoin difficulty from June 2018 to may 2019

data source: bitcoin visual, coincola Research Institute

the figure above shows bitcoin difficulty. Since 2019, the difficulty of bitcoin mining has increased in a step-by-step manner, from the low 5T to the current 7T. It can be seen that the rapid rise of bitcoin in this round has reced mining costs and increased market entry personnel. The increasing difficulty of mining means that there are profit opportunities in cryptocurrency market, and the market is generally optimistic< (2) the number of active addresses and transactions on the chain are important indicators reflecting the activity of cryptocurrency, which are highly correlated with the price of cryptocurrency

1. The number of active addresses on the bitcoin chain: a straight line rise

remarks: the number of active addresses on the bitcoin chain from June 2018 to may 2019

data source: coinmetrics, coincola Research Institute

active addresses refer to the addresses where transactions have taken place every day, that is, how many independent addresses conct transfer transactions on the chain every day. Since 2019, the number of active addresses on the bitcoin chain has been rising, especially in recent years. From 540.60143k in January to 832.592k now. It shows that the rapid growth of active users of cryptocurrency is a very positive signal for the market

2. The number of transactions on the bitcoin chain: continued to rise

remarks: the number of transactions on the bitcoin chain from June 2018 to may 2019

data source: bitinfo charts, coincola Research Institute

since 2019, the number of transactions on the bitcoin chain has continued to rise, from 235k in early 2019 to 374k now. Moreover, since April and may, after two rounds of sharp rise in the price of bitcoin, the number of transactions on the chain has remained at a high level, even showing signs of a short-term surge< (3) lightning network and bitcoin price

in essence, lightning network adds a layer to the basic layer of bitcoin blockchain in order to make the transaction fast and cheap. With the existence of lightning network, users can remit money to each other at any time and pay very little. Lightning network represents not only the technical level of bitcoin, but also the important basis of bitcoin value

1. Lightning network nodes: rapid growth

remarks: bitcoin lightning network nodes from January 2018 to may 2019

data source: bitinfo charts, coincola Research Institute

the test version of lightning network started on the bitcoin main network on March 15, 2018. The number of lightning network nodes was only 64 at the beginning of 2018 and increased to 2329 at the end of 2018. Since 2019, the number of lightning network nodes has increased rapidly, and now it has reached 4289. In less than half a year, the number of nodes has doubled. The continuous expansion of nodes indicates the continuous upgrading and development of bitcoin lightning network technology, which is an important indicator of bitcoin price

2. Lightning network capacity: speed up

remarks: bitcoin lightning network capacity from January 2018 to may 2019

data source: bitcoin visual, coincola Research Institute

the data above shows that as of May 15, 2019, bitcoin lightning network capacity has increased to 1039 BTC, equivalent to 833usd, while at the beginning of 2019, it is only 504btc, Lightning network capacity doubled, and the growth rate accelerated. This means that the expansion of bitcoin has been well solved in lightning network technology, which will help keep the payment channel active and effectively support the functional application of bitcoin

the performance of mining, chain trading and lightning network is closely related to the price of bitcoin. On the one hand, the rise of bitcoin price acts as a catalyst to stimulate its performance in mining, chain and lightning network; On the other hand, mining, chain trading and lightning network are the important cornerstone of bitcoin price trend and the important basis of bitcoin price expectation<

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3. Users can buy bitcoin, and at the same time, they can use computers to do a lot of calculations according to the algorithm to "mine" bitcoin. 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. Due to the decentralized programming of the bitcoin system, only 25 bitcoins can be obtained every 10 minutes. 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

warm tips:
1. According to the notice and announcement issued by the people's Bank of China and other departments, virtual currency is not issued by monetary authorities, does not have monetary attributes such as legal compensation and compulsion, is not a real currency, does not have the same legal status as currency, and cannot and should not be used as currency in the market, Citizens' investment and transaction of virtual currency are not protected by law
2. Before investing, it is recommended that you first understand the risks existing in the project, and clearly understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market
3. The above explanation is for reference only. Investors should not use such information to replace their independent judgment or make decisions only based on such information, which does not constitute any investment operation

response time: February 5, 2021. Please refer to the official website of Ping An Bank for the latest business changes
[Ping An Bank I know] want to know more? Come and see "Ping An Bank I know" ~
https://b.pingan.com.cn/paim/iknow/index.html

4.

First of all, you should imagine a concept of "wallet" in your brain. Your bitcoin is in your wallet. A wallet can contain many... Many addresses. The form of the address is the form

with the bitcoin address generated in the bitcoin wallet, you can receive bitcoin from others, and you can also transfer the bitcoin in your account to the bitcoin address of others. Bitcoin address, like bank card number, has the functions of payment, transfer and withdrawal. However, when transferring money, you can only transfer money by knowing someone else's bitcoin address

if we simply compare a bitcoin wallet to a bank card account, then the address of the bitcoin wallet can be regarded as a bank card account number. The difference is that bitcoin addresses can not be stored on the network, but also exist independently of your wallet

< H2 > extended data:

bitcoin address is a string of 26 to 34 letters and numbers. It looks like a lot of messy code. To put it bluntly, it's just like your bank card number. All transfer records of each bitcoin address can be checked through blockchain query, which is open and transparent

address generation of bitcoin Wallet: 256 binary digits are randomly selected to form the private key, and then the address is generated by encryption function. This generation direction is unidirectional. That is, you know that the address cannot be decrypted to calculate the private key. At present, the computing power of human computer can't be cracked, so you can publish the address on the Internet with ease

reference link: bitcoin | network

5. The classic version of bitcoin continues Nakamoto's idea (block development can follow Moore's law), and takes into account the current network situation (especially the firewall where China is absent from work), and increases the original 1m block limit to 2m. Increase the total amount of transactions that the network can support<
the reason for the classic version of bitcoin:
1 the core team (mainly members of blockstream company) insists that the 1m upper limit should not be modified
2 Gavin and others hope to expand the block capacity to increase the transaction volume supported by the network before the block is seriously blocked
3 China Mining pool thinks that Gavin's early scheme has too high requirements for the network, Not suitable for the domestic network situation
4 developer Jonathan came to China and carried out a series of field network performance tests for the block size. The test results show that there is no problem for China network to support 2-3m blocks. At the Hong Kong Conference (led by the core team), he shared his test results, but they were ignored
5. Jonathan contacted and interviewed many miners and mine owners, and came to the conclusion that Gavin's original plan was accepted by very few people because of its fast expansion speed, but there were basically no miners and mine owners against the expansion of 2-3m, Developed the classic version of bitcoin
6. The mining pools and companies that were interviewed and inquired by Jonathan began to declare that they support the classic version, because it is the only feasible expansion scheme that can be promoted in the near future, and they have excellent developers.

6. Mine card, as the name suggests, is used for mining graphics card, more strictly speaking, is a long-term high load operation of mining graphics card. The graphics card used in mining usually works at full load 24 hours a day for several months. In this way, PCB and electronic components will accelerate aging, affecting the life of components. Not counting the rest time of the graphics card, even if we play the game for 8 hours a day, the life of the mine card is only one third of that of the normal graphics card. It can be said that the general life of the mine card is only a few months.

7. There are only two ways to judge whether the card is mine card or not:
the most obvious sign of mine card is that the PCB on the back of GPU core turns yellow, which is caused by long-time full load work
get a temperature curve and run time to know whether it is mining or not. It's only the mine that operates at such a high temperature for a long time without taking effective cooling measures
what is the meaning of graphics card
the so-called mining card is the graphics card for mining. The "mining" here is virtual mining. Generally, there is a professional graphics card to mine. The mined mine is actually bitcoin. Users download the mining software from the computer and then run a specific algorithm. After communicating with the remote server, they can get the corresponding bitcoin. Most of them work by burning the graphics card, so the power consumption is large. Graphics cards and mine cards are usually graphics cards with ATI chips. When bitcoin went out of business, those miners took out their mine cards and sold them as second-hand ones
the difference between mine card and graphics card:
1. A card above 7850 should not be trusted for personal use. If the quality is good, you can buy it.
n card 750ti is popular. It's a good time to mine this graphics card. Generally, a large number of these cards are bought from March to May. The mining algorithm of this card is not high in temperature and power consumption, Don't ask the merchants how long they have been mining.
the difference between mine card and non mine card is not that you can see the color by looking at the chrysanthemum. Not only the chrysanthemum, but also the power supply and PCB board. If it's serious, you can see it at a glance. No matter how much water is washed, it's impossible to turn the PCB into yellow and normal color.
also through my observation, Some cards have different batches, and the resistance and capacitance are different. Some of the original resistance and capacitance are yellow
those who don't buy mine cards should try not to buy second-hand ones, and those who don't buy new ones should try not to buy them. There are really a lot of repaired procts

8. Elizabeth II, Isle of man, 1994