Virtual currency transactions in 2017
The total number of bitcoins is 21 million
in 2009, when bitcoin was born, block reward was 50 bitcoins. Ten minutes after its birth, the first 50 bitcoins were generated, and the total amount of money at this time is 50. Then bitcoin grew at a rate of about 50 every 10 minutes. When the total amount reaches 10.5 million (50% of 21 million), the block reward will be halved to 25
when the total amount reaches 15.75 million (5.25 million new output, i.e. 50% of 1050), the block reward will be further halved to 12.5. 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
extended data
monetary characteristics
1. Decentralization: bitcoin is the first distributed virtual currency, and the whole network is composed of users without a central bank. Decentralization is the guarantee of bitcoin's security and freedom
2. Global circulation: bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell or collect bitcoin
3. Exclusive ownership: private key is needed to control bitcoin, which can be stored in any storage medium in isolation. No one can get it except the user himself
4. Low transaction cost: bitcoin can be remitted free of charge, but a transaction fee of about 1 bitfen will be charged for each transaction to ensure faster transaction execution
5, no hidden cost: as a means of payment from a to B, bitcoin has no cumbersome limit of quota and proceres. If you know the other party's bitcoin address, you can pay
6. Cross platform mining: users can explore the computing power of different hardware on many platforms
this is also a distributed (decentralized) digital currency. Unlike the sha256 mining algorithm used by bitcoin, LTC adopts scrypt algorithm. Scrypt algorithm uses sha256 as its subroutine, and scrypt itself needs a lot of memory. Each hash is used as the seed of the input, and then it needs a lot of memory to store another pseudo-random sequence to generate the pseudo-random points of the sequence and output the hash value. In the mining of BTC (bitcoin), it is not enough to rely on simple graphics card mining (it takes about ten to dozens of days to dig a BTC with general configuration graphics card). The emergence of various expensive mining machines has raised the threshold for ordinary people to get BTC through mining, while LTC has certain advantages in using PC graphics card mining This passage comes from Zhihu.)
compared with BTC, litecain has made a little improvement in technology. If BTC is gold now, LTC is silver for the time being
the biggest advantage of litecoin is that it can confirm the authenticity faster. The virtual currency is designed and maintained by Charles Lee. Bitcoin transactions need to be verified, and the average verification time is more than 10 minutes. Most transaction websites need 1 hour to verify. The average transaction confirmation time of liteoin is 2.5 minutes. Developers claim that shortening the verification time increases the practicability of virtual currency. The bitcoin mining efficiency of customized machine and AMD GPU is the highest, making it almost unprofitable for miners using CPU mining. Litecain's mining excludes GPUs and custom processors, so it doesn't rely too much on a small number of professional miners
ppcoin
ppcoin (PPC) was released on August 19, 2012, which has improved the original technology of BTC. Use proof of make and add the concept of coin age
ppcoin is a bifurcated project of bitcoin, which aims to achieve energy efficiency and maintain the best performance of the original bitcoin as far as possible. The unit price of ppcoin is US $0.22 and the total currency value is US $4 million
ppcoin does not have a fixed upper limit of money supply, but it does not mean that ppcoin has obvious inflation compared with bitcoin. Bitcoin can be compared to gold. The annual inflation rate of gold is about 1-3%. Although gold has no known upper limit of money supply, we still know that it is a reliable scarce commodity
ppcoin has two types of casting: work certificate and equity certificate. The coinage rate of working proof is affected by Moore's law, which depends on the doubling of our working proof ability. What we all know is that Moore's law will eventually come to an end. By then, the ppcoin of inflation may be close to the gold level. The annual maximum inflation rate of certificate of equity is 1%. At the same time, ppcoin's transaction costs were destroyed to fight inflation. So on the whole, the coin design of ppcoin is still a very low inflation design in the future, which can be comparable with bitcoin<
ppcoin's reward is similar to lottery, which will determine the winning probability according to the number of ppcoin held by miners. Sunny king, one of the founders, said that their design is based on a new concept of long-term energy efficiency
terracoin
terracoin (TRC) was released on October 26, 2012, with a total currency of 42 million. The speed of each block is 2 minutes, slightly faster than LTC. There is not much special in technology, similar to the proction of BTC halved every four years
however, the operation team seems to have a strong business background and may be better than other bitcoins in circulation. The development of virtual currency is getting more and more attention. Now some teams with business background will accelerate the development of virtual currency
namecoin
namecoin is a distributed domain name system based on bitcoin technology. Its principle is the same as bitcoin. The first release date of this open source software is April 18, 2011
namecoin is generated from an original block which is different from bitcoin's main trading block. It uses a new blockchain, which is independent of bitcoin's blockchain. Because it is based on bitcoin, the security, distribution, robustness, encryption and migration of domain names are guaranteed mathematically. You can dig bitcoin and namecoin at the same time
this project was discussed and proposed by bitdns, which is mainly dissatisfied with the defects of DNS. The only top-level domain name of namecoin is. Bit. It costs namecoin to register a. Bit domain name
in addition, Q currency, Shanda currency, starting point currency and various online game currencies are also virtual currencies.
China does not have the first legal virtual currency. At the end of 2013, the central bank and other five ministries and commissions issued the bitcoin risk notice, which clearly defined bitcoin as a special Internet commodity, and the public can buy and sell it freely on the premise of taking their own risks
other digital confidential currencies are also suitable, such as Laite coin, the ancestor of Shanzhai coin, Fuyuan coin for business points in jewelry instry, dog coin for small reward, etc. But although virtual currency exists legally in our country, it is illegal to cheat under the guise of virtual currency
extended data
as the proct of e-commerce, virtual currency has begun to play an increasingly important role, and it is more and more connected with the real world. However, with the growth of virtual currency, the relevant laws and regulations are lagging behind, which has laid many hidden dangers
fraud
the private transactions of online virtual currency have realized the two-way circulation between virtual currency and RMB to a certain extent. The activity of these traders is to buy all kinds of virtual currencies and procts at a low price, and then sell them at a high price to earn profits. With the increase of such transactions, there are even virtual mints
in addition to the virtual currency provided by the main company, there are also some people who specialize in "virtual coin making" to obtain virtual currency by playing games and then resell it to other players. Take Wenzhou as an example, there are about seven or eight such "virtual mints" with four or five hundred practitioners. This not only creates a bubble for the price of the virtual currency itself, but also causes trouble for the normal sale of the issuing company. It also provides a platform for selling and collecting money and money laundering for various cyber crimes. p>
impact system
in modern financial system, the issuers of money are generally central banks, which are responsible for the management and supervision of money operation. As the equivalent exchange goods used to replace the real currency circulation on the Internet, the virtual currency on the Internet is essentially the same as the real currency. The difference is that the issuers are no longer central banks, but Internet companies
if the development of virtual currency makes it form a unified market, each company can exchange with each other, or virtual currency is integrated and unified, and all of them are based on the same standard and price, then in a sense, virtual currency is currency, which is likely to form a threat impact on the traditional financial system or economic operation
network problems
in addition to direct cash, virtual currency can also be purchased by SMS, internet transfer and fixed telephone recharge. These ways of purchase not only provide convenience for users, but also have many risks
such as embezzlement of telephone recharge and purchase by minors. In addition, virtual currency does not have the anti-counterfeiting technology of real currency. Computer hackers may use its security loopholes to proce counterfeit currency. Relevant personnel of the State Administration for Instry and Commerce said that virtual currency transaction is a business behavior derived from the Internet era, and there are no clear legal provisions to regulate it, and there are no items related to virtual goods transaction in the scope of instrial and commercial registration
but when the virtual property transaction graally employs people, places are fixed, transaction profits are clear, and has the nature of operation, it may involve market order and tax issues. Even game operators have no ability to control. There are a large number of "counterfeit banknote makers" in the network. Take the winger who is mainly engaged in chess and card online games as an example, the purchasing power of his online currency has shrunk by nearly 40% in one year. Many people point out that such inflation will only damage netizens and make them lose confidence in the Internet
reference source : network virtual currency
According to reports, on February 28, the website of the National Bureau of statistics released the statistical bulletin of national economic and social development in 2017, which showed that the balance of broad money supply (M2) was 167.7 trillion yuan at the end of 2017, an increase of 8.2% over the end of last year
the macro leverage ratio can be measured by the ratio of the supply of broad money (M2) to the total GDP. In 2017, the nominal growth rate of GDP was 11.23%, while the supply of M2 was only 8.2%, which was lower than that of the previous year. However, the overall level is still around 2:1, higher than that of developed countries
analysts said that in 2017, the economic growth rate was 6.9%, the unemployment rate was less than 5%, and the inflation rate was 1.6%. This kind of economic operation pattern is commendable, and it is also unique in the world
Without the so-called formal platform, virtual currency has not been legally recognized in China. There are only relatively large platforms, such as: among the top ten digital currency trading platforms that users are familiar with,
three digital currency trading platforms with an average daily trading volume of more than 10 billion are okex, fire coin pro and coin an
there are many digital currency trading platforms, more than 100 of which are still increasing. So many digital currency trading platforms make users dazzled when they choose
but in fact, although there are many digital currency trading platforms, there are few formal currency trading platforms that have done well in all aspects. The usage habits of every user who invests in digital currency procts will also affect their evaluation of the selected digital currency trading platform
extended information
in order to protect the interests of investors, the regulatory authorities have long announced the prohibition of this transaction in China - and the regulatory authorities' determination to crack down on virtual currency transactions has not changed
you know, as early as September 2017, the central bank and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, calling for the suspension of direct transactions of virtual currency. In January 2018, the leading group for the special rectification of Internet financial risks, the China Internet Finance Association, the business management department of the central bank and other departments successively issued three articles to strengthen the supervision of virtual currency again
Bitcoin prices hit a new high. Bitcoin broke the $50000 mark on the 16th and hit $51000 on the 17th, according to data from coindesk. As of 7 a.m. Beijing time, the price of bitcoin rose 7.4% to $56055.74
at this latest price, the total market value of bitcoin is about $1.04 trillion. This number is second only to Google, which has a market value of $1.4 trillion, and higher than Tesla, which has a market value of $750 billion, ranking fifth in US stocks. Based on the closing price of Guizhou Maotai on February 19, the total market value of bitcoin is 2.17 times that of Maotai
the value of bitcoin will grow by more than 415 billion US dollars in 2021, reaching more than 1 trillion US dollars. In the past six months, bitcoin prices have risen by about 350%. Market participants said that recently, some institutions and large companies said they would enter the field of digital currency, which pushed up the price of bitcoin. Changes in the flow of speculative funds benefiting from the early stage in the future and the attitude of regulators may have an impact on its trend. At the same time, it makes more cryptocurrencies known, but the value of most cryptocurrencies, especially bitcoin, fluctuates every day. Although virtual currency is designed to promote safer transactions, it is not difficult to see that its value is becoming more and more speculative through the recent price fluctuation of bitcoin. Some encryption investors become millionaires overnight, but they may lose most of their wealth in a few weeks. It also shows the huge and unreliable nature of bitcoin, especially the goods and services as a currency
Of course, there are many other factors in addition to the above two main reasons. For example, in the past two years, new currency issuance has been stopped by many countries. After the outbreak of digital currency market in 2017, a large number of new digital currencies appeared in the market. However, the issuance of new currency usually carries a high risk, and there are many fraulent behaviors in the market, so the issuance of new currency is stopped by various countries. The ban on the issuance of new currency has hindered the development of digital currency, but it has further boosted the flames and stabilized the investment value of bitcoinpotential problems and risks faced by bitcoin
technological innovation: first of all, the challenge bitcoin will face is technological innovation. The decentralized design of bitcoin not only refreshes us, but also limits the development of bitcoin. Every upgrade of bitcoin protocol needs to reach a consensus with each node on the network, but everyone has different views on bitcoin, and consensus is often difficult to achieve. This problem leads to the bifurcations of bitcoin and the slow development of bitcoin protocol itself. At the same time, with the development of science and technology, the implementation and application of quantum computing will also break the security model built by bitcoin based on the overall computing power of all nodes in the network, which may theoretically achieve 51% computing power attack. So far, this problem has not been solved. In other words, bitcoin may suddenly become less secure after the advent of quantum computing technology. In addition, e to the consensus mechanism of bitcoin, power consumption and hardware requirements are also increasing. So far, these problems have not been completely solved
the issue of central bank's digital currency: in addition to some problems of bitcoin itself, bitcoin will also face the challenges of central bank's digital currency in the future. Part of the value of bitcoin lies in the application of its blockchain, and the transaction mode of blockchain is also a major direction for the development of banks in the future. Applying the same technology, the central bank can better examine economic activities and carry out macro-control, which may be more concive to economic development. At the same time, we are not sure whether the digital currency issued with national credit will be easier to implement and get better development. However, when central banks make similar attempts, they are bound to compete with bitcoin to a certain extent
the foundation and early development of bitcoin are based on people's desire to build a fairer monetary system. But with the financialization of bitcoin and the admission of institutional investors, we suddenly found that a large number of bitcoin has been in the hands of financial giants. Bitcoin as cryptocurrency, its transactions have been outside the supervision, there is no legal requirement for institutional investors to disclose the large amount of transactions of bitcoin to ensure the fairness of the market, which also provides a lot of space for institutional investors to manipulate the market. Retail investors enter the market with a good vision of digital currency, but in the end, they become the target of big predators. After harvest after harvest, more capital is in the hands of financial giants
On July 6, it was learned from the people's Bank of China that since September last year, the central bank, together with relevant departments, has searched out 88 domestic virtual currency trading platforms and 85 domestic initial token issue financing (ICO) trading platforms, and basically realized risk-free exit, with the global share of bitcoin Trading in RMB falling to less than 1%
in view of the new varieties and new situation of the recent illegal financial activities, the relevant regulatory authorities organized to block the "going to sea" virtual currency trading platform and resolutely crack down on the ICO's emergence and various varieties. As of the end of May, 110 websites of trading platforms, including huocoin.com and coin.com, had been blocked
at the same time, the regulatory authorities continue to strengthen the liquidation and rectification from the end of payment and settlement, and have interviewed many non bank payment institutions such as Cai Fu Tong and Alipay for many times, demanding that they strictly implement the requirement that they should not carry out related businesses such as bitcoin and other virtual currencies. At present, Alipay has investigated and shut down about 3000 accounts for virtual currency transactions. p>