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What is bitcoin? Why is bitcoin valuable

4hw.org: Recently, bitcoin blackmail virus is rampant, which also let more people know the word bitcoin. Recently, it's the seventh anniversary of bitcoin pizza day. A programmer bought two pizzas with 10000 bitcoins. Maybe he didn't expect it. Now a bitcoin is worth two thousand dollars. 10000 bitcoins can buy a pizza shop in a street! So the question is, what is bitcoin? Why is bitcoin so valuable? Let me tell you more about it!

Monday (May 22) marks the seventh anniversary of bitcoin pizza day, when a programmer named Laszlo hanyecz bought two Papa John's pizzas with 10000 bitcoins.

This is widely seen as the first transaction of bitcoin, a digital currency. What's more, it tells us about the crazy growth of bitcoin in the past seven years.

What is bitcoin?

Bitcoin (abbreviated as BTC) is a kind of digital currency with a total amount of 21 million, which has the same characteristics as the Internet, such as decentralization, globalization, anonymity and so on.

You look confused? Elder martial brother, I'd better explain it to you in colloquialism.

Bitcoin was conceived by a Japanese in 2008 and officially launched in 2009.

The upper limit for bitcoin is set at 21 million, like a mine that holds 21 million coins. To dig it, miners need to use the computing power of computers to work out a set of answers according to the set questions, just like calculating a mathematical problem. For each set of answers, the miners get a bitcoin, a process known as mining.

Of course, with more and more miners, math problems are becoming more and more difficult, which eventually leads to more bitcoin on hand and harder to produce. The scarcity of bitcoin (the maximum number of issues is 21 million) determines that the more difficult it is to acquire bitcoin, the more difficult it is to acquire bitcoin.

What's the use of bitcoin? What's the value?

Penguin Family's q-coin is believed to have been used by all of us. Although it's funny to say that it's an international q-coin, it's true that all of us are virtual currencies.

In a broad sense, bitcoin is a kind of world currency. Q coin is just a token of RMB. If penguins close one day, Q coin will be used up. But if you want to topple bitcoin, the answer to this question can be found in 'how to make penguins topple', let alone bitcoin corresponding to the world and people around the world. In terms of circulation, all countries around the world have begun to accept the use of bitcoin, and Germany is the first to recognize the legality of bitcoin. The cost of bitcoin payment is very low, attracting tens of thousands of businesses around the world to accept bitcoin payment, including Microsoft, Dell, new egg and other giants. In China, there are many sellers who accept bitcoin on Taobao, and there are many stores and supermarkets that begin to accept bitcoin in Beijing, Shanghai and other large and medium-sized cities. There are also a number of online trading platforms that can directly convert bitcoin into various current currencies in most countries, including RMB.

But in a narrow sense, bitcoin is a commodity as well as q-coin. Countries such as the United States also regulate bitcoin as a commodity. Stephen Middleton Kinsella, a senior lecturer in economics at the University of Limerick, even thinks that bitcoin's highly deflationary nature will make it very bad for monetary purposes; as a commodity, bitcoin is barely making do with it, but it is basically equal to selling real estate on the moon, lacking original value.

summary

Bitcoin is a kind of special commodity with huge reverie space, great controversy and great price fluctuation. Bitcoin is likely to be unable to reach a certain scale to enter the positive cycle due to various defects, and finally it is half dead like Esperanto. Therefore, ordinary people should not be involved in this muddy water to invest in bitcoin. At present, the risk level of bitcoin belongs to venture capital, not to ordinary people's investment. If you have to be optimistic about investing, make sure you understand bitcoin well, invest with idle money, and be prepared to lose 95% of the principal.