- 1 1. What is the relationship between Bitcoin and gold
- 2 2. Is bitcoin really digital gold?
- 3 3. The current price of Bitcoin
- 4 4. 1. Some people say that Bitcoin is “digital gold”. If there is a metaphor for
- 5 5. Where can I go to check the price of Bitcoin Gold (BTG)
- 6 6. What will be the impact on the price of gold behind the sharp rise and fall of Bitcoin
- 7 7. Bitcoin is called “digital gold”, why is Bitcoin so valuable
- 8 8. Can the price of bitcoin surpass spot gold? Can bitcoin preserve its value?
1. What is the relationship between Bitcoin and gold
The relationship between Bitcoin and gold
Bitcoin, a blockchain-based digital currency, is often considered to be able to become a global currency like gold. safe-haven assets. In this age of global turmoil, even gold has become unreliable and could be confiscated like India. Some people have begun to think that Bitcoin can replace gold, because in addition to the reserve capacity of gold, Bitcoin has some capabilities that gold does not have, such as low handling fees, fast transfer capabilities, and decentralization. As Bitcoin usage continues to grow in popularity and volatility continues to decrease, gold’s status has begun to be threatened.
Will bitcoin shake the status of gold?
Gold has a long history, almost as long as the history of human civilization, and has withstood countless tests in history. Bitcoin, on the other hand, is less than a decade old, and its value has risen sharply. There is no support behind Bitcoin. Of course, since the end of the gold standard, other currencies also have no support, but there is no support from the central bank behind Bitcoin. It’s hard to predict whether Bitcoin will exist in the next decade, a hundred years, or even a thousand years.
2. Is bitcoin really digital gold?
It is said that bitcoin is digital gold for the following reasons:
1. Bitcoin It has the highest market value among digital currencies and is also the foundation of the digital currency market;
2. The total amount is limited;
3. The product of Internet development has no institutional or national support behind it. It is fair;
4. Its value is gradually recognized by the public;
5. Compared with gold, its authenticity identification, segmentation, carrying and storage are more convenient;
6. Programmable currency to meet the needs of charities and government agencies to address corruption.
3. The current price of Bitcoin
This article will not cover the more detailed parts of the algorithm and protocol. I plan to write another Bitcoin from the perspective of a programmer later. Principles, there will be some explanations of the key data structures, algorithms and protocols in the Bitcoin system from the perspective of technical personnel.
In this article, I will give a virtual village called “Bit Village”. The whole article will tell you the motivation of Bitcoin, what problems it solves, and some key components in the way of storytelling. goals and design options.
Let’s start with the motivation behind Bitcoin.
Bartering Bit Village
In this world, there is a small village called Bit Village. There are hundreds of households in the village. The village is almost isolated from the rest of the world, living a self-sufficient life. Since there is no large-scale trade, the villagers of Bit Village have been living a life of barter, that is to say, the villagers do not use a unified currency, and the mutual trade is basically the old Zhang’s family exchanging a bag of flour for the old Li’s family. For a sheep, Mrs. Wang exchanged a basket of wild fruits for Mrs. Liu’s two-foot cloth. The villagers have always lived such a simple life.
Finally, one day, the villagers felt that it was too inconvenient to barter like this all the time, so the whole village held a meeting to discuss how to solve this problem. It has been proposed that, in order to facilitate division and rare things, such as gold, as a general equivalent, the correspondence between other items and gold should be compiled into a table, for example, one gram of gold corresponds to a sheep, one gram of gold corresponds to a bag of flour, etc. , At this time, Lao Zhang no longer has to go to Lao Li’s house panting with a bag of flour to change sheep. He only needs to find a gram of gold from the house, and he can go to Lao Li’s house to get a sheep back, and Lao Li takes this sheep. A gram of gold can be exchanged for a sack of flour from anyone willing to sell it, and of course any item worth a gram of gold.
At this time, Bit Village has entered the era of physical currency.
The good times did not last long. After a while, the disadvantages of physical currency also appeared. Because there are not many gold mines near Bit Village, mining and smelting gold is too time-consuming and labor-intensive. And with use, gold is constantly depleted by wear, loss, or deliberate hoarding. The whole village sat together again and began to discuss countermeasures. At this time, some people said that in fact, you don’t have to really use gold. Just find a piece of paper and write “one gram of gold”. As long as the whole village agrees that this piece of paper is equal to one gram of gold, the problem will be solved. . Others have agreed, but at the same time there are new problems: real gold needs to be mined and smelted, gold mines are limited, and mining and smelting also require costs, so no one can produce a large amount of gold out of thin air in a short period of time. Writing is different. Now, as long as I have enough paper and pens, and I can write as much as I want, then it will become someone who has too much paper at home, and maybe 10,000 pieces of paper can be exchanged for a sheep (actually, this will cause economic problems.) academic inflation).
Everyone thinks about it. But at this time�� Someone proposed a solution: this paper is not valid for anyone who writes it, we only recognize it as written by the respected old village chief in the village, and everyone knows the words of the old village chief. The old village chief wrote some paper, and at the same time distributed the same amount of paper according to the gold stock of each house. For example, if the old Zhang family had 200 grams of gold, the old village chief would send Lao Zhang 200 pieces of paper with “one gram of gold” written on it. paper, and at the same time took the old Zhang’s gold as collateral. In this way, the old village chief took all the gold in the village to his home, and distributed the equivalent amount of written paper according to the amount of gold handed in by each home. At this time, the villagers can use these papers as gold for trade, and everyone recognizes the old village chief’s words, and others cannot forge them. In addition, if anyone’s paper is too worn out, he can get the old village chief to exchange for new paper of the same value. In addition, the old village chief promises that if anyone wants to exchange for real gold, as long as they take the paper back, the old village chief will return the paper. will return the equivalent of gold to that person. Because the amount of gold written by the old village chief is the same as the amount of gold actually placed at home, as long as the principle of how much paper is destroyed and how much new paper is written is strictly followed, each valid piece of paper can always be exchanged for the corresponding real gold .
At this time, Bit Village entered the era of symbolic currency (paper money). The old village chief assumed the role of the government and the bank.
Virtual currency in the central system
A few years later, the old village chief had to check a large number of old banknotes every day, write new banknotes, and carefully record various accounts. . After going back and forth, the old village chief was overworked and unfortunately drove off to the west of the crane.
Bit Village held a plenary meeting again to discuss what to do. At this time, Ergouzi, the son of the old village chief, volunteered to take over his father’s pen and assumed the responsibility of currency issuance. This young village chief Ergouzi is very smart. He worked for a few days and found that he didn’t really need to write so much paper. This is completely possible: the villagers hand in all the banknotes and destroy them, but Ergouzi will record the number of banknotes handed in by each household. If you want to pay in the future, for example, if Lao Zhang wants to exchange one gram of gold for Lao Li for a sheep, they will call Ergouzi together to explain that one gram of gold under Lao Zhang’s name should be transferred to Lao Li’s name. , Ergouzi took out the ledger to see if there was a gram of gold in Lao Zhang’s name. If there was, subtract 1 gram in Lao Zhang’s name and add 1 gram in Lao Li’s name, and the payment was completed. At this time, when Lao Li heard Er Gouzi confirming that the transfer was completed on the phone, he could rest assured that Lao Zhang would lead the sheep away.
At this time, Bit Village has entered the era of virtual currency in the central system. Each villager does not need to pay in kind, and the payment process becomes a change in the numbers on the ledger maintained by Ergouzi.
Distributed virtual currency
This new two dog is smart, but sometimes this person is smart but is mistaken by smart. One day Ergouzi stared at this ledger and thought to himself that whoever has the money of each household in the whole village is what I say, so am I not…. So he became hot, and privately transferred ten grams of gold from Lao Zhang’s account to his own name.
I thought it was seamless, but I didn’t expect that Lao Zhang also had the habit of keeping accounts. One day he was about to pay when he was told by Ergouzi that the account was out of money. Lao Zhang checked his account book, he clearly still had ten grams, so he took the account book to go to Ergouzi Theory. This check found the transfer that was not approved by Lao Zhang.
What happened! Bit Village exploded. It is inevitable for Ergouzi to be impeached, but through this incident, everyone discovered the drawbacks that the ledger is concentrated in the hands of one person:
This system completely relies on the personal credit of the ledger holder. Rules, tampering with the ledger at will, then the entire currency system will collapse
If this person’s house catches fire or the ledger is stolen, it will also bring a devastating blow to the entire system
When people are at a loss, the village An otaku scientist named Satoshi Nakamoto came to the stage and told everyone that he had designed a virtual currency system called Bitcoin that does not rely on any central processor, which can solve the above problems. Then he slowly described his plan.
Let’s take a look at how Satoshi Nakamoto designed this system.
Account Book Disclosure Mechanism
Satoshi Nakamoto first explained that the existing account book should be transformed as follows:
The account book will no longer record the balance of each villager, but only Record every transaction. That is, the payer, payee and payment amount of each transaction are recorded. As long as the initial state of the ledger is determined, and each transaction is recorded reliably and in a sequential manner, it is possible to calculate how much money each person currently holds.
The account book has been changed from private to public. As long as any villager needs it, they can obtain the current complete account book. The account book records all the transaction records from the creation of the account book to the current one.
As soon as this statement came out, the frying pan was immediately below. The first one doesn’t matter, but the second one simply doesn’t.I accept, because the account book records the transactions of all the villagers, so everyone’s privacy is not fully exposed.
Satoshi Nakamoto took his time and took out a pair of strange things.
Identity and signature mechanism (public key encryption system)
Nakamoto said, don’t panic. Under his mechanism, no one trades with a real identity, but with a unique code.
He showed the magical things in his hand, saying that the two things were called a security seal and a seal scanner. Later, he will issue a secret seal and a seal scanner to every household in the village. The functions of the two are as follows:
The secret seal can be stamped with a seal on the paper, and the seal stamped by each seal contains a unique string of characters in the whole village, but it cannot be seen with the naked eye. It is also impossible to produce the corresponding seal by observation.
The stamp scanner can scan a stamp that has already been stamped, read out the implicit information, and display a string of characters on the LCD screen.
With these two magical things, everyone can conduct transactions without revealing their true identity, and the string of characters implied by the seal is the code name of this family. How to make clever use of confidential seals and seal scanners for transactions will be described in detail below.
Set up a virtual miner organization (mining group)
Next, Satoshi Nakamoto recruits virtual miners to the whole village. The recruitment requirements are as follows:
Miners are grouped as a unit, and a group can be a separate group One household, or several households can be combined into a group
Becoming a miner does not affect the normal use of currency
Miners spend a certain amount of time every day engaged in Bitcoin “mining” activities, but unlike gold mining, virtual Miners do not need to go to the field with tools, they can complete the work at home
Miners have a certain possibility of getting paid, the more effort they put in in mining activities, the greater the possibility of getting paid
Miners can withdraw at any time, and new miners can be added at any time.
Soon, about one-fifth of the villagers joined the Bitcoin miner organization, and they were divided into 7 groups.
Establish the initial account book (Genesis block)
Next, Satoshi Nakamoto announced that according to the account book in Ergouzi’s hand, all the gold mortgaged shall be returned to each villager according to the balance recorded in the account book, and then Completely destroy this ledger.
Then, Satoshi Nakamoto took out a new account book and recorded some transaction records on the first page of the account book. In particular, the payer column of these records was all “system”, and the payee They are the implicit characters corresponding to each seal, which represent the initial moment. The system allocates a certain amount of bitcoins to each household by default, but the number is very small, only a few, and even some unfortunate village households did not get bitcoins.
Nakamoto then said that since there are very few bitcoins on the market at present, everyone can go back to the era of using gold as currency. Since I am not the village head, I have no right to force everyone to admit bitcoin. Everyone It is up to you to decide whether to accept Bitcoin or not. However, with the flow of bitcoins and the activities of miners, bitcoins will gradually increase.
Payment and transaction
After doing so much foreshadowing, I finally got to the point. Let’s talk about how to complete the payment under such a system. Take Lao Zhang paying Lao Li 10 bitcoins as an example.
The payer signs the transaction order
In order to pay 10 bitcoins, Lao Zhang first asks Lao Li for his identification string, such as “ABCDEFG”, and Lao Zhang also has an identification string such as “HIJKLMN” ”, and then Lao Zhang wrote a list with the content “HILKLMN paid 10 bitcoins to ABCDEFG”, then changed a chapter with his own secret seal, and handed the list to Lao Li. In addition, in order to facilitate the traceability of the source of the money, it is also necessary to indicate which page the source of the money is recorded on in the list. For example, in this list, Lao Zhang’s 10 bitcoins come from the system when the account book was established, and are recorded in the account book. First page.
The payee confirms that the signer of the document
Lao Li needs to confirm that the document is indeed signed by the person “HIJKLMN” (that is, Lao Zhang). Not difficult. Because there must be a confidentiality stamp on the bill, Lao Li took out the stamp scanner and scanned the stamp. If the characters displayed on the LCD screen are the same as those of the payer (here is “HIJKLMN”), he can confirm that the bill is indeed the payer signed. This is because according to the mechanism of the confidential seal, no one else can forge the seal. Anyone who scans the seal can confirm whether the payer and the sealer are the same.
The payee confirms the balance of the payer
This system is still very problematic so far. Through the confidentiality seal, the payee can confirm that the payer has indeed signed the form, but cannot confirm whether the payer has sufficient balance to pay. In the previous central virtual currency system, Ergouzi was responsible for checking�� The balance of the payer and notify the payee whether the transaction is valid. Now that Ergouzi is opened, who will be responsible for accounting and confirming the validity of each transaction?
As I said before, the system designed by Satoshi Nakamoto is a distributed currency system and does not rely on any central person, so there will be no one or a few people responsible for this matter, and the one who will ultimately undertake the job is the one previously Mentioned miners organization. Lao Zhang, Lao Li, and any other villagers in the village who use Bitcoin to transact rely on the work of the miner organization to complete transactions.
The work of the miners
The work of the miners is the core of the whole system, and it is also the most complex place. The following is a step-by-step introduction to the work content and purpose of miners.
Tools of miners
As the saying goes, if a worker wants to do a good job, he must first sharpen his tool. Although Bitcoin miners do not need tools such as iron sticks, shovels and searchlights, there are some necessary things.
The initial account book. Each group first copies an initial account book by itself, the initial account book has only one page, and records the system’s first donation of empty account book paper. Each group has several account book sheets, each page only has the account book structure without filling in the content. The writing rules of the specific content will be described later. The following is what an empty account book looks like. The meaning of each field will be mentioned later.
The code generator (hash function). Satoshi Nakamoto distributed a number of code generators to each group of the miner organization. This thing is amazing. Put a page of account book paper with the contents of the account book into the machine, and the machine will display the “this bill number” in the account book paper. The column automatically prints a string of numbers consisting of “0” and “1”, a total of 256. The most amazing thing is that the number generator has the following functions:
The generated number is only related to the content filled in the account book paper, and has nothing to do with the filling person, font, filling time and other factors
The account book with the same content The number generated by the paper is always the same, but if the content is only changed by one character, the number will be completely unrecognizable.
When printing the code, the code generator also needs to put all the transaction slips filled in the account book paper, and the machine will scan the transaction The consistency between the receipt and the filled transaction slip, especially the confidentiality seal, if it is found that the confidentiality seal is inconsistent with the payer, it will refuse to print the code
Put a printed account book paper in, and the machine will determine whether the serial number is valid machine to print, and determine whether the number and content are consistent, this number cannot forge the inbox of the transaction order. Each miner group needs to hang a box at the door for collecting transaction slips. Bulletin Board. Each miner group also needs a bulletin board to publish some information.
With the above tools, the miners’ organization can start working!
Collecting transaction slips
Satoshi Nakamoto stipulated that the initiator of each transaction should not only give the transaction slip to the payee, but also copy several identical transaction slips and deliver them to each miner group at the same time ‘s inbox.
The people of the miner team regularly go to their inbox to collect the transaction list and take it out.
Fill in the account book
At this time, the team members took out an empty account book sheet, filled in these transactions in the “Transaction List” column, and at the same time found the last page of the current account book, and numbered the last page. Transcribe it into the “Last Bill No. Column”. Note that there is also a “lucky number”, you can fill in any number, such as 12345. Then, put this account book paper into the number generator, print the number, and an account book is complete.
If you think that the work of miners is so simple, then you are wrong. Satoshi Nakamoto has a perverted rule: only if the first 10 numbers of the number are all 0, this page of account books is valid.
According to the previous description of the number generator, to modify the number, you can only modify the content of the account book, and the “transaction list” and “the number of the previous account book” cannot be changed casually, so you can only change the lucky numbers. So in order to generate valid account book paper, the miners in the group kept copying the account book paper, but each piece of paper had a different lucky number, and then repeatedly put the paper into the encoder, if the generated number did not meet the regulations, this piece of paper Even if it is invalid, repeat this process until a string of valid numbers is generated.
We know that if each number of the number is random, then an average of more than 1,000 pieces of paper with different lucky numbers can be written to get a valid number.
This is strange, why do these miners desperately do this seemingly meaningless thing? Remember that I said before that miners are paid, this is the motivation of miners. Satoshi Nakamoto stipulated that the first transaction in the transaction list of each ledger paper is “the system pays 50 bitcoins to this group”. That is, if you generate a meaningful ledger paper and it is accepted by all mining groups, it means that the transaction is accepted and your mining group gets 50 bitcoins.
This is what miners are called�The reason for the miners, and why it was said earlier that the number of bitcoins will continue to increase with transactions and miner activity. For example, the following is a mining process, the group’s public bitcoin account is “UVWXYZ”.
When the lucky number tries to reach “533”, the system generates a valid account book.
Confirm the ledger
When a mining group is lucky enough to generate a meaningful ledger, in order to get the reward, it must immediately ask other groups to confirm their work. As mentioned earlier, there are currently 7 mining groups in the village, so this group must quickly transcribe 6 copies of the valid account book and send it to the other 6 groups for confirmation.
Satoshi Nakamoto stipulates that when a group receives the ledger paper sent by other groups, it must immediately stop the mining work in hand to confirm the ledger.
There are three pieces of information that need to be confirmed:
The number of the account book is valid
The previous page of the account book is valid
The transaction list is valid
First look at the first one, this confirmation compares Simple. Just put the sent book paper into the code generator for verification, if the verification is passed, the number is valid.
The second part needs to compare the “number of the last page of the account book” on the account book page with the last page number of the valid account book currently saved by the group. If it is the same, confirm it. If it is different, it needs to follow the existing account book. Go forward until you find this numbered page. If no page is found for the specified “previous book sheet number”, the team will discard the page. Not confirmed.
Note that the above mechanism can ensure that if the account book paper in the hands of each group is the same, then they can all be bound into the same account book in the same order. Because the numbering of the following sheet is always dependent on the numbering of the preceding sheet, the mechanism of the code generator ensures that the relative order of all legal book sheets is the same in each group (there may be branches, but not ring, which will be discussed in detail later).
The last step is to confirm that the transaction list is valid. In fact, it is to confirm that the payer of each current transaction has enough balance to pay the money. Since the transaction information includes how the money came, it also includes the bill number that records the source transaction. For example, HIJKLMN wants to give ABCDEFG 10 bitcoins, and indicates that these 10 bitcoins come from a transaction previously paid by OPQRST to HIJKLMN. When confirming, it must first confirm whether the previous transaction exists, and also check whether HIJKLMN is before this. The 10 bitcoins were not paid to others. After all this is confirmed, the validity of the transaction is confirmed.
The first one is the 50 rewarded by the system to the group that generated this page of account books. This transaction is acknowledged by default. As long as the latter is traced back according to the above method, it can be confirmed whether HIJKLMN really has 10 bitcoins to pay. to ABCDEFG.
If all the above verifications are completed and all passed, the group will recognize the validity of the above account book and paper, and then merge this account book paper into the main account book of the group, discard the current work in progress, and follow the mining work. It will be based on this updated master ledger.
Account Book Confirmation Feedback
For the mining team, after the account book paper is sent out, if there is an account book paper sent by other groups later, its “previous page book paper number” is the previous one. The ledger paper sent out, then it means that their work has been successfully recognized by other groups, because there are already groups that continue to work based on their ledger paper. At this point, it can be roughly said that 50 bitcoins have been obtained.
In addition, when any group newly generates a valid account book or confirms the account book of another group, it will write the latest transaction recognized by this group on the bulletin board, then as long as the payee finds that the relevant transaction has been After each group has approved it, he can basically think that the money has arrived in his account, and then he can point the source of the money to this transaction when making payment.
The above is the entire Bitcoin payment system. Let’s analyze why this system can work and the risks that this system may face.
Analysis of Working Mechanism
Although the basic operating rules of Bitcoin are explained above, the villagers still have many questions. Therefore, Satoshi Nakamoto held a Q&A session to answer frequently asked questions. The following summarizes the issues that the villagers are most concerned about.
Core Questions and Answers
What should I do if I receive two legal account book pages at the same time?
Note that in the above operating mechanism, each mining group works in parallel, so it is entirely possible that a group receives two different account book pages, which are based on the current main account book of this group , and the content is completely legal, what should I do?
On this issue, Satoshi Nakamoto said that the group should not organize the books in a linear manner, but in a tree-like manner.The organization account book, at any time, uses the current longest branch as the main account book, but retains other branches. For example, a group receives two account book pages A and B at the same time, which are legal after accounting. At this time, the group should organize the two pages in the form of a fork, as shown in the following figure:
Black represents the current ledger trunk. At this time, you can choose any page as the current main branch, for example, choose A:
At this time, if there is a new account book page based on A, then the main branch will continue:
If this trunk continues like this, it means that everyone basically uses A as the trunk, and B will be forgotten. But it is also possible that B suddenly becomes longer:
Then we need to use the B branch as the current trunk, and perform subsequent work based on this branch.
From a local point of view, although there may be inconsistencies in the main account books of each group at a certain moment, the general direction is consistent, and those small branches that are occasionally generated due to asynchrony will soon be submerged in the in history.
What if someone in the mining team forges the ledger?
On this issue, Nakamoto said that as long as most people in the mining organization are honest, the system is reliable. reply.
First of all, based on the confidentiality seal mechanism, no one can forge the identity of others to make payments, because the code generator will check the confidentiality seals of all transaction slips when printing the code, and if the seal is inconsistent with the payer, it will refuse to print.
And honest miners will not admit illegal transactions (such as a transaction with insufficient balance of the payer).
So there is only one possible attack behavior, that is, after the payee confirms the payment, create another transaction order from another branch, cancel the previous payment, and pay the same money to another person again (the so-called double-spending problem). The following also uses an example to illustrate this problem.
Suppose there is an attacker with 10 bitcoins, he is going to pay the money to two victims A and B at the same time, and both are admitted.
The first step, the attacker prepares to buy 10 bitcoins of gold from victim A, he signs a transaction slip to victim A, and transfers 10 bitcoins to victim A.
In the second step, the transaction is confirmed in the latest account book page and announced by various mining groups. Victim A saw the announcement, confirmed the receipt of bitcoins, and gave the attacker 10 bitcoins in gold.
In the third step, the attacker finds the account book, makes a branch from the previous page of the account book page containing the transaction just now, and generates more billing pages than the previous branch. Since the branch created by the attacker just now becomes the main branch, and the branch containing the money obtained by Victim A becomes a side branch, the mining organization no longer recognizes the transfer just now, and the 10 Bitcoins that Victim A gets are cancelled. .
In the fourth step, the attacker can sign the transaction form again to pay Victim B the same amount of money. After Victim B confirms that the money has arrived, it pays the attacker the equivalent of gold.
At this point, the attacker spent 10 bitcoins twice, buying the equivalent of gold from each of the two victims. The attacker can also do the same, cancel the transfer with the victim B, and repay the same money to others…
Regarding this kind of attack, the solution given by Satoshi Nakamoto is to advise the recipient not to When the announcement is posted, the transaction is confirmed immediately. Instead, you should wait for a while and wait for each mining team to post another 6 confirmation account books, and the previous account books have not been cancelled before confirming that the money has arrived.
Nakamoto explained that the perverted numbering rules were previously set to defend against this. According to the above, generating a valid account book page is not so simple, it takes a lot of manpower to try different lucky numbers repeatedly, and the process is completely random. If a ledger page contains a confirmation that you have received money, and 6 continuations follow, it is very difficult for an attacker to overtake the current master branch from another branch while being 6 pages behind, unless the attacker Has a lot of manpower, more than all other honest miners combined.
Moreover, if the attacker has so much manpower, instead of spending so much effort to carry out this kind of attack, it is better to be a good citizen and make a big profit. This prevents the formation of the attack from the motivation.
Bitcoin will continue to increase, will it cause severe inflation
Satoshi Nakamoto said, I also thought of this. I forgot to mention earlier, the operating rules manual I gave to the miner organization will explain that at the beginning of our agreement, every time we generate a page of account book, the team will be rewarded 50 bitcoins. Later, when the account book increases by 21,000 pages, the reward will be halved. For example, when After reaching 210,000 pages, 25 bitcoins will be awarded for each page of account books generated, after 420,000 pages, 12.5 coins will be awarded for each page generated, and so on. After the account book reaches 6,930,000 pages, a new account book will be generatedThere is no reward for the page. At this time, the total amount of Bitcoin is about 21,000,000, which is the total amount of Bitcoin, so it will not increase indefinitely.
If there is no reward, no one will be a miner. No one will help to confirm the transaction
When it arrives, the miner’s income will be changed from mining income to charging handling fee. For example, you can specify 1% of the transaction fee to be paid to the team that generates the account book page when transferring money.
If there are more and more miners, will bitcoins be generated faster?
No. Satoshi Nakamoto explained that although one can join and leave the miner organization at will, resulting in changes in the number of miners, each miner will also get a code generator, but I have added a control mechanism to the code generator, and the current working code generator The more, the less efficient each machine is, keeping the rate at which new book pages are generated constant.
Although everyone’s code name is anonymous, if someone’s code name is leaked and the account books are public, wouldn’t all his accounts be found out
This is indeed the case. For example, if you want to trade with someone, you must go to his code to fill in the transaction form. Because the payee column needs to be filled in with that person’s code. However, Satoshi Nakamoto said that it can provide unlimited confidentiality seals. It is recommended to use different confidentiality seals for each transaction, so that all accounts of the same person cannot be traced by checking the account books.
The answer is complete.
This article uses a popular metaphor to explain the operation mechanism of Bitcoin. A few points to note:
I’ve made a lot of simplifications for ease of understanding, so some of the mechanics details may not be exactly the same as the actual bitcoin. But the general idea and key principles are the same.
Because many things in the computer world (such as public key systems, network transmission) do not have particularly good equivalents in the real world, there are inevitably some blunt and unreasonable details in the story.
This article describes the technical principle and operation mechanism of the Bitcoin network itself. When Bitcoin is traded in a trading market such as Mtgox, the market acts as an intermediary agent and does not follow the above mechanism
4. 1. Some people say that Bitcoin is “digital gold”. If there is a metaphor for
, there are actually elements of contrast. To a certain extent, it can be said to be digital gold, but it cannot be regarded as real digital gold, after all, it is not legal tender.
5. Where can I go to check the price of Bitcoin Gold (BTG)
Bitcoin China is the first and largest Bitcoin trading platform in China. The operation of Tuxi Network Co., Ltd. was established on June 9, 2011.
6. What will be the impact on the price of gold behind the sharp rise and fall of Bitcoin
At present, the price of Bitcoin is mainly driven by the Chinese market, and the Bitcoin trading volume in the Chinese market accounts for the world’s largest more than 90%.
Some analysts said that the rise of bitcoin was mainly helped by capital and currency restrictions in countries such as China, India and Venezuela, which prompted people to buy electronic currency to preserve their savings, and also pushed investors to continue to grow. buy.
At this point, investors cannot help but ask, will bitcoin replace gold as the largest safe-haven asset?
Ian Bezek, a professional trader, believes that bitcoin and gold have their own advantages, but Gold has a bigger advantage at this stage.
Ian Bezek pointed out that Bitcoin is highly accepted in some countries with severe capital controls, such as Argentina, where it is difficult to transfer assets abroad.
China’s depreciation of the renminbi due to economic slowdown and asset outflows. Bitcoin is mainly used to convert RMB assets into overseas assets, which is much more convenient than gold in this regard.
This is not bad news for gold, because the popularity of Bitcoin means that gold, which is also a safe-haven asset, will also usher in an upside opportunity.
7. Bitcoin is called “digital gold”, why is Bitcoin so valuable
Bitcoin is only a transaction currency, but It’s expensive because it’s rare enough. Basically, anyone who has been on the Internet knows about the existence of Bitcoin, and also knows that it is very valuable. Many business leaders of Bitcoin also believe that its future value will be higher than that of gold, and it is indeed digital gold.
Bitcoin still has a lot of room for growth in the future. After all, gold will always be exhausted one day. There is only so much gold stored on earth. As long as you keep digging, there will always be a day when it will be finished, not to mention that in the future when humans develop into space and can mine resources from other planets, the status of gold will decline again. But the storage capacity of Bitcoin is unlimited, and the output is uncertain, more or less. After all, it is an online virtual currency, especially in the future. Of course, how to use bitcoin in the market in the future is also a big problem, but the existence of bitcoin is a good expectation for the future.
8. Can the price of bitcoin surpass spot gold? Can bitcoin preserve its value?
The price of bitcoin hit a new high on Friday (March 03), reaching 8,360 yuan, and there was a history on Thursday It surpassed the price of gold for the first time since. Conversely, spot gold prices have had a bad week, falling in four out of five sessions. The recent rally in bitcoin’s price has been helped by stronger foreign exchange policies in countries such as China, India and Venezuela, as well as investors’ expectations that bitcoin’s prospects will be bullish under the Trump administration.
-Bitcoin price overtakes gold
China’s three major bitcoin exchanges suspended bitcoin withdrawals last month as China’s central bank worried that bitcoin would become a tool to transfer money abroad Efforts to manage exchange rates are discounted.
In addition, investors may also be betting on a more relaxed regulatory environment under the Trump administration. The U.S. Securities and Exchange Commission is expected to make a decision on March 11 on plans for an exchange-traded fund based on digital currencies.
In January of this year, Bitcoin, which has always been volatile, broke through its 2013 high of $1,137. After peaking at that level in 2013, Bitcoin fell 53% in less than a month.
Carsten Fritsch, an analyst at the National Commercial Bank, pointed out that Bitcoin has the characteristics of small market size, lack of public understanding, short history, extreme price fluctuations and a high proportion of speculators. John Butler, director of financial services at Gold Money, said, “Bitcoin has a long way to go to establish a relatively stable store of value, and its overtaking of the price of gold is just a random performance.”