1、 The birth of bitcoin

In fact, bitcoin was first proposed by a Japanese company. It is he who designed and invented an open source software, which is also built on the P2P network. In other words, this kind of currency is a kind of virtual currency. It relies on the virtual encrypted number in the form of P2P to carry out a point-to-point transmission, which means that it is a decentralized payment system. Unlike traditional currencies such as RMB and US dollar, bitcoin is a kind of virtual currency. It does not rely on specific financial institutions to issue. It relies on the software to carry out special algorithms, and then carries out a large number of calculations through computers. It is the economy of bitcoin. It uses the nodes in the whole P2P network to form a distributed database And through this database records people's trading behavior, and through the password to ensure the security of its various circulation links, the whole operation process is carried out in this way.

2、 Characteristics of bitcoin

As we know, bitcoin has only 21 million in total, so it is a kind of scarce currency. Because its circulation is limited, it can not be issued unlimited. Therefore, as people mine more bitcoin, it will be more and more difficult to mine in the future. At the same time, its scarcity will also be strengthened, which will directly lead to its appreciation. We all know that the appreciation of bitcoin has exceeded US $60000 in the past two years, which is a very terrible number. When bitcoin came out, many people didn't want it at all. They just regarded it as a game currency. But now a bitcoin has risen to US $60000, which is really incredible.

3、 Application of bitcoin

As we know, bitcoin does not have a centralized issuer. It is formed by network node calculation. Therefore, everyone can participate in the mining of bitcoin, and in any place in the world, as long as a computer connected to the Internet is used, it can mine bitcoin. As a result, there is an industry called mining industry, that is, people invest in bitcoin We use a lot of computers to mine special currency at the same time. In the early days, the efficiency is very high, but with the further decline of the scarcity of bitcoin, it is more and more difficult to dig out bitcoin. However, bitcoin is not used as an official currency in many countries, so if we have bitcoin, we may not be able to buy things. Of course, some manufacturers can buy products through bitcoin.

For example, Tesla can now use bitcoin for payment, but the scope of bitcoin is not as wide as it is used. However, with the further development of bitcoin in the future, it is believed that more and more manufacturers and businesses can allow the circulation of bitcoin. Because bitcoin is a virtual currency, it also has a strong scarcity, so to a certain extent, it also affects the value of gold. As we all know, gold has fallen sharply this year. One of the reasons is that the value preservation of bitcoin has increased significantly. Therefore, in this epidemic era, people want to invest in something with better value preservation, so bitcoin is one of the choices. So it's not surprising that people buy bitcoin in order to maintain their own capital. Because there are so many risks in the world, people want to have a better way to maintain their own capital

(2021-4-13)