The concept of BitCoin Essay

The concept of BitCoin was originally proposed by Nakamoto in 2009 to design and release open-source software based on Nakamoto’s ideas and construct a P2P network on it. Bitcoin is a P2P form of digital currency. Point-to-point transmission means a decentralized payment system.

Unlike most currencies, Bitcoin is not issued by a specific currency agency. It is generated through a large number of calculations based on a particular algorithm. The Bitcoin economy uses a distributed database of nodes in the entire P2P network to confirm and record all transactions, And use cryptography to ensure the safety of all aspects of currency circulation.P2P decentralization and algorithms themselves ensure that currency can not be artificially manipulated by massively producing bitcoin. Cryptography-based design allows Bitcoin to be only transferred or paid by the real owner. This also ensures the anonymity of currency ownership and distribution transactions. The biggest difference between bitcoin and other virtual currencies is its very limited number of scarcities. The currency system had no more than 10.5 million in four years, and the total amount thereafter will be permanently limited to 21 million.

Bitcoin can be used to redeem money that can be converted into most countries. Users can use bitcoin to buy some virtual items , such as clothes, hats , and equipment in online games. If accepted, they can also use bitcoin to buy real-life items. ^[1-2]

West Virginia Democratic Senator Joe Manchin sent an open letter to multiple federal government regulators on February 26, 2014 in the hope that the agencies concerned will be able to give bitcoin incentives to engage in illegal activities and disrupt the financial order Attach importance to it and demand that the electronic currency be completely blocked as soon as possible.

Bitcoin advocates insist that one day Bitcoin will certainly be widely circulated for online purchases or other electronic transactions. Some physical retailers and some small store-based physical stores such as Overstock.com have accepted bitcoin but are not widely represented.

Critics say the volatility in bitcoin prices makes it harder to adopt; they also warn of their lack of regulation and may even be used to buy drugs or trade illegally.

Bitcoin is stored in a virtual wallet with a unique key. When trading, Bitcoin is sent from one purse to another purse-related unique key through an encryption process; this process is validated by computers across the Bitcoin network.

Bitcoin wallets can be stored offline, and online trading platforms such as Bitstamp and BTC-E can exist.

The Bitcoin system aims to reward computers for the important task of transaction verification, where they randomly acquire new bitcoin during the so-called bitcoin mining process.

The supply of bitcoin is limited to 21 million, which is expected to reach around 2140.Approximately 16.7 million bitcoin have been released into the system so far, and about 12.5 new bitcoins will be released every 10 minutes through the “mining” process. Mining refers to the global computer network competing to solve complex algorithm problems in order to obtain new bitcoin.

These mining machines require a lot of energy to keep running. As bitcoin prices rise, more and more miners enter the market, further increasing their energy consumption. Technology news site Motherboard recently predicted that assuming about 300,000 bitcoin transactions a day, a bitcoin consumes 215 kWh, which is almost equivalent to a week’s energy consumption for an average U.S. home.

** Small Bitcoin

If you want to buy bitcoin, you do not need to buy the complete one. The smallest unit of Bitcoin is “Satoshi,” which is named after the rumored Bitcoin developer Nakamoto. One Cong is equivalent to one billionth of a bitcoin, and a Cong is equal to about $ 0.0002 at the current bitcoin price.

** bitcoin billionaire **

With the exception of 2014, bitcoin’s performance has surpassed the currency issued by any central bank every year since 2011. In 2014, Bitcoin performed worse than any traditional currency. By 2017, bitcoin has risen by more than 1,400%. If you bought $ 1,000 in bitcoin in early 2013 and have not held it for sale, you will have about $ 120 million in wealth today.Many people see Bitcoin as a speculative tool, not as a real currency, because of its own volatility, high transaction costs, and the fact that it is seldom accepted by business people.

** Stolen Bitcoin **

More than 980,000 bitcoin coins have been stolen by hackers or insiders from various exchanges. At current prices, this amounts to more than $ 15 billion. Few bitcoin is recovered.

** creator identity mysterious

Although many are trying to figure out the creators of Bitcoin, many claim that they are Nakamoto, but we still have no idea who Nakamoto is or whether he is still alive. Australian computer scientist and entrepreneur Craig Wright convinced some prominent figures in the Bitcoin circle in May 2016 that he was Nakamoto, but then refused to provide the necessary evidence. The outside world that Nakamoto is a pseudonym, it is not clear that this is a group of developers or someone’s name. We also have no way of knowing whether he is alive or not, and occasionally mentioning the name of the late computer scientist Hal Finney. Computer scientist Nick Szabo has denied being Satoshi Nakamura, Tesla founder and CEO Elon Musk recently denied himself.

** Exaggerated trading volume in China **

Earlier this year, the outside world believed that the Chinese exchange accounted for about 90% of the volume of Bitcoin transactions. But now we know that some exchanges exaggerate the volume of transactions and brush up the volume of transactions by repeated surface transactions between the two accounts. Volumes in China have dropped sharply since the Chinese authorities imposed a transaction fee, which is currently less than 20%, according to Bitcoinity, a Bitcoin site.

** Bitcoin Market Value **

At present, the total value of bitcoin in the system has reached 283 billion U.S. dollars, and its total “market value” is higher than that of Visa and higher than the sum of the market cap of Blackrock and Citigroup.