As a new paradigm of currency in human civilization, Bitcoin represents the meaning of personal wealth sovereignty and inviolability. Hello everyone, today I want to talk about Bitcoin, one of the hottest topics in the world today. This issue will cover the basic concepts of Bitcoin and Bitcoin Let’s start with the basics of Bitcoin and its main advantages and disadvantages. Bitcoin is a digital currency or a virtual currency. Electronic currency can be called in many ways. Bitcoin has an unknown person or It was created by a group of people under the pseudonym Satoshi Nakamoto in 2009.
It is based on a p2p peer-to-peer network, which means that transactions can be carried out directly from one person to another without the need for a central agency or third-party intermediary. Bitcoin and other traditional currencies are mainly The difference is that it is decentralized and its value does not depend on any central bank or authority. It uses cryptography to create new currencies to verify transactions and secure its network. This decentralized system makes it less susceptible to manipulation and counterfeiting because No single entity controls the flow and supply of money. Another key concept behind bitcoin is that it relies on a technology called the blockchain to record all verified transactions in chronological order. This blockchain technology ensures that the transactions stored in it are All information will not be tampered to provide trust and security for global users and bitcoin is limited it will only create 21 million according to market demand it will become rare and very valuable like gold over time Since its launch in 2009, the cryptocurrency has grown in popularity among investors as well as merchants who accept it as payment for goods or services .
Overall, Bitcoin is revolutionary, radical, through its innovative technology and bold ideas about decentralization . To change the way money works is to let people control their property in an unprecedented way . For the first time in human history, we can control our own wealth and sovereignty. From the above introduction, we can extract the main advantage of Bitcoin is the first decentralization Bitcoin is the first decentralized electronic currency. It does not depend on any external agency or central bank.
A global p-to-p network, that is, a peer-to-peer network, is used for relevant records and transactions. Our previous transfers have relied on Intermediary institutions such as banks or large companies such as Alipay or Paypal, and the core of the Bitcoin network is to change this centralized mechanism. To change any funds we want to trade, we need to go through the authoritative central bank through the authoritative large The situation that can only be completed by the company is OK.
The second trustworthiness Bitcoin uses the reward mechanism of proof of work to ensure that everyone can follow the same rules during the transaction process. Because compliance will reward them, if they do not comply, do not comply? will lose , which means that people will make the best choice based on their own interests , which is to maintain the network honestly As long as most people maintain the network honestly, the network can continue to operate safely. OK The third main advantage is its privacy. More than 30 random numbers are used on the blockchain to represent all participants, that is, addresses. Conduct transactions without leaving any real name address or information related to personal identification , which also causes a lot of illegal money laundering. Through the fourth transparency of Bitcoin transactions, all transactions of Bitcoin can be viewed through the Blockchain browser. And verify that it forms a strong transparency that cannot be deceived or reversed. That is to say, all of us can check the historical transaction records.
This is completely transparent and open, and the fifth advantage that has been kept on the chain is it. Convenience, it can make the financial circulation at home and abroad, that is, the transfer transaction can be 7/24. In addition, everyone can conveniently and quickly participate in this Bitcoin community without going through traditional financial institutions . The basic concept of Bitcoin and its main After this advantage, let’s talk about its main disadvantages or some of the main problems now.
Its limitations. The first major disadvantage is also a disadvantage of all these digital currencies now. Bitcoin is easier to lose and keep. It is also more difficult because it requires a certain threshold to use. From purchase to safekeeping, a series of research is required. This is why Bitcoin was only popular in these geek circles at the beginning. The second main disadvantage is that everyone has been there for so many years. The Bitcoin transaction fees that are being criticized are expensive and the transaction speed is slow. With the increase in transaction demand, the transaction speed and transaction fees of Bitcoin become more and more expensive.
More and more people criticize it, but they also see more and more solutions. The problem of the solution also made V God Vitalik propose a solution for Ethereum, and then we have this Ethereum smart contract. The Ethereum network is OK. The third major disadvantage is that it is becoming more and more centralized because the difficulty of mining is very high and the funds required are very high. More and more, it leads to more and more concentration in the hands of big consortiums or big whales. The original intention of Satoshi Nakamoto's original idea of using a computer CPU to own Bitcoin has gradually drifted away. The fourth major shortcoming I believe that most of the newcomers in the currency circle generally agree that it is getting more and more expensive. Now Bitcoin has little relationship with ordinary people . The era of achieving wealth freedom by holding Bitcoin is over.
If you are free, you still have to find a project with a greater increase. The fifth major disadvantage is that the price fluctuates violently . The development of Bitcoin and the blockchain is still in its early stage, so any unfavorable factors will cause the price to skyrocket. In a bear market, it can directly drop by 80 %. Ordinary people may not be able to withstand such violent fluctuations. Bitcoin is the weathervane of digital currency. If Bitcoin falls by 70 to 80%, other altcoins may If you fall to the point where you don’t even know your mother or return to zero, ordinary people may not be able to afford it.
Cryptocurrency investment is a game of radicals. Of course, Bitcoin has a series of shortcomings, but if you ask me if you want to give it to me, I’m still happy to accept it. OK. Summarize We talked about the basic concept of Bitcoin. Bitcoin is a decentralized electronic currency based on cryptography and does not rely on trust. A peer-to-peer network that uses proof of work to record public transaction history.
The main advantages of Bitcoin include 1. Decentralization 2. Trustworthiness 3. Privacy 4. Transparency 5. Convenience Of course, the main disadvantages of Bitcoin are also mentioned. The main disadvantages are firstly that it is troublesome to use, secondly, it is easy to lose, thirdly, it is becoming more and more centralized, fourthly, the price is getting more and more expensive, and fifthly. Well, the price fluctuation is just a personal learning sharing. If you feel that there is something wrong, you are welcome to add corrections in the comment area . It is worth noting that Bitcoin, as a new paradigm of currency in human civilization, represents the sacred and inviolable sovereignty of personal wealth. Significantly , the underlying blockchain is a technology that only emerged after the Internet bubble burst at the beginning of this century, while Bitcoin and other cryptocurrencies, as the value expression of the blockchain, are still in the early stages of the industry and far from reaching the mature standard of Bitcoin. It’s just a stepping stone to this new world. This wonderful encrypted decentralized world is waiting for us to build, to pan for gold, to explore OK.
Today’s sharing is here first. Peace love and rich.
