Bitcoin and basic principles of blockchain

IV. the future of bitcoin: restrict the development of private cryptocurrency, and accelerate the research and development of digital currency of the central bank 1. Bitcoin risks: inherent risks arising from its own operation mechanism There are many potential risks behind the myth of bitcoin making. The design mechanism of bitcoin makes it different from other currencies, and there are many special problems. —— Market risk, market superficiality, storage transaction risk, operation risk, privacy related risk, and legal and regulatory risk. Market risk: first of all, no matter bitcoin is used as an asset investment or as a trading medium, any bitcoin holder will face the market risk brought by the price fluctuation of bitcoin. Bitcoin without issuing entity is almost uncontrolled and easily affected by external factors. The lack of value basis makes it very difficult to determine the intrinsic value of bitcoin. Such uncertainty may bring loss to investors. Unstable currency...

3. Bitcoin Investment: in essence, it is not money, and investment still needs to be viewed objectively According to the manifestation of money, we can divide money into two categories: physical currency and credit currency: physical currency is mainly used as the general equivalent of commodity exchange, among which metal currency is the most representative one; in the 1930s, the global economic crisis caused global panic and financial chaos, forcing major capitalist countries to break away from the gold standard and credit currency successively. The silver standard, the currency that the country provides credit endorsement, emerges at the historic moment, namely the so-called credit currency._ DJMINER 1. Bitcoin and real currency Physical money is the initial form of money produced in the process of commodity exchange. It is a general form of value expression as a medium of commodity exchange and is based on its own value as a commodity. Commodities that can be used as real...

II. Behind the rise of bitcoin: speculative demand and inadequate supervision Since 2013, bitcoin trading has been active, and the price once showed an explosive upward trend. From the lowest price of US $66.34/pc in 2013 to the highest price of US $19187.78/pc in history, it has appreciated nearly 300 times. What makes bitcoin rich? We think we need to discuss the reasons for the crazy rise of bitcoin from the perspective of speculative demand and regulation._ DJMINER 1. Bitcoin speculative demand led price rise As a trading product, bitcoin has many advantages: convenient account opening, low transaction threshold, low handling fee, 24-hour trading and no geographical restrictions. These advantages make the transaction volume of bitcoin rise rapidly, with daily turnover from the lowest point of $2.86 million, and once reached $21.8 billion on December 21, 2017. Bitcoin plays a leading role in the mainstream digital currency, and Chinese investors pay more attention to...

1. Virtual currency: the product of Internet popularization Virtual currency is a kind of currency widely existing in the Internet world, which is different from the real non entity currency with entity as the medium. Its common form is a series of numbers recorded on a network account. With the popularization of personal computer and the development of Internet technology, people's network activities have an explosive growth. As a kind of transaction medium in the network world, virtual currency is widely circulated in e-commerce, Internet Finance and other fields, which brings convenient transaction and payment experience for network users._ DJMINER According to the different ways of issuing virtual currency, it can be divided into two categories: one is represented by Tencent's q-coin, Shanda's coupons, various forum coins and game coins. The legal virtual currency with issuing center, like credit currency, is often credit currency, and its issuance is determine...

In recent years, the price of bitcoin has skyrocketed and the market has developed rapidly. As of March 28, 2018, the closing price of bitcoin is $8039.86/piece, the total circulation volume is 16.95 million, and the circulation market value is $120.148 billion, accounting for 45.84% of the total market value of mainstream digital currency. According to the global bitcoin Development Research Report, China's bitcoin transactions account for 80% of the global bitcoin transactions. According to the report's sample survey of users of fire coin, 80.77% of bitcoin investors aim at short-term profits, and only 13.81% of users choose long-term holdings. DJMINER Why is bitcoin developing rapidly? Is there a long-term investment value? This paper will introduce the technical basis, historical development, market status, domestic and foreign regulatory policies of bitcoin at the textbook level, and analyze the reasons for the sharp rise of bitcoin, investment value and risk. Bitcoi...

Although bitcoin has not been able to trade freely up to now, we cannot deny the advantages of bitcoin, and there are many advantages that cannot be replaced by other trading objects. The first is the freedom of payment. With the circulation of bitcoin, you can pay and receive any amount of money at any time and place in real time; and there will be many fewer restrictions, because there are no bank holidays, no borders and no imposed restrictions. Bitcoin allows its users to fully control their funds._ DJMINER It can also reduce the risk of merchants, because bitcoin transactions are secure, irrevocable, and do not contain sensitive or personal information of customers, which avoids the loss of merchants due to fraud or fraudulent chargeback. In fact, where the credit card cannot be used or the fraud rate is unacceptably high, businesses can easily expand the new market, and the final result is lower handling fees, larger market, and less administrative costs. In fact, the mos...

Although many investors know nothing about bitcoin mining, they still can't help the temptation of bitcoin price and plan to put into the mining camp. So if you also want to mine, I believe there must be a question in your mind: "what is a bitcoin miner? What is the principle of the bitcoin digger? " To solve this problem, let's remember some popular science today._ DJMINER The origin of bitcoin To fully understand the origin of bitcoin, we have to mention the existing financial system. Bitcoin As we all know, money itself has no value. At first, people used barter to trade, but there are many inconveniences, it is difficult to change to the goods they need. As a result, the currency came into being. Through the intermediary of currency, different goods can be priced according to the rarity and the transaction process can be simplified. Although there are many advantages in currency trading, there is also a fatal disadvantage, that is, centralization. 100% o...

Recently, the two biggest things in the blockchain field are the Ethernet Constantinople hard fork and the private coin grin project. As a media focusing on blockchain technology, the battalion commander naturally pays more attention to the former. This time, the untimely Ethereum is untimely again. But the battalion commander doesn't think we need to pay too much attention to it. On January 20, just after the Constantinople hard fork was postponed again, Afri schoedon, a core development member of Ethereum, said that the overall progress of Ethereum 2.0 related projects such as serenity, proof of rights and interests (POS) and sharding had nothing to do with the upgrade of Ethereum 1.0's on chain protocol. The delay of Constantinople's hard fork will not affect Ethereum 2.0. Later, God V tweeted and commented that Constantinople's rigid bifurcations would not affect the stable and sustainable development of Casper / sharding / Serenity at all. When it comes to bi...

As for the blockchain, I think many people equate the blockchain with bitcoin, so when they see the sharp rise of bitcoin, they go to hype it. As a result, bitcoin plummeted, and they think it's a scam. For example, in fact, compared with a system, bitcoin is only an app under this system._ DJMINER Blockchain is a kind of technology, the biggest feature is decentralization. With the popularity of blockchain technology representing bitcoin in recent years, international giants, even governments of many countries, have begun to pay attention to the technology behind bitcoin. Because the application space of blockchain is very wide, it can be used not only in digital currency, but also in non monetary field, including gene technology, selective voting and so on. The blockchain can record the decentralized public database of all transactions in real time. When the blockchain is used for payment, the entire computer network can jointly query the data on the blockchain and jointly ve...

At present, the research, experiment and promotion of blockchain are in full swing. Can blockchain really change our lives? This article will introduce bitcoin blockchain technology in a simple and understandable way. Strive to let readers quickly understand the basic principles of bitcoin and blockchain, but do not involve too detailed technical issues._ DJMINER primary coverage 1. Introduction to bitcoin 2. Working principle of blockchain 3. bitcoin account 4. bitcoin transaction 5. essence and influence of blockchain Technology I. Introduction to bitcoin What is bitcoin? Bitcoin is a digital currency, or a digital asset. He was created and published by an anonymous man who called himself Nakamoto. Bitcoin network consists of many nodes (computers) on the Internet, which maintain the operation of bitcoin network according to the agreed protocol. The ingenious algorithm design makes the nodes in the network comply with the consensus protocol, so bitcoin can...