Bitcoin: an encrypted virtual currency that is not issued by a specific monetary institution and is generated by a large number of calculations according to a specific algorithm (calculating power consumption). The total amount is 2 1 10,000, which cannot be increased and is not controlled by any centralized institution (individual, company or country). The key is not leaked, and the security is extremely high (under the existing human technology, it cannot be cracked, which is much higher than the security of banks). Bitcoin uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions and storage behaviors (that is, Bitcoin is absolutely safe unless all nodes are destroyed or attacked by more than 5 1% people in the whole network). The characteristics of Bitcoin are decentralization (maintained by all holders and not controlled by any centralized organization), rarity (the total amount is 265,438+0 million, which is non-renewable and non-super-issued), security (which cannot be cracked under the existing human technology) and long-term storage (which can be stored permanently without any cost or loss, as long as the key is kept well).

Reasons for the emergence of Bitcoin: The origin of Bitcoin was the financial crisis in 2008, when global central banks oversold currency, which led to global inflation. Some liberals and anarchists believe that excessive money is the plunder of personal wealth by centralized organizations (governments or countries). For example, the world wealth is now $65,438+00 trillion, which is owned by people all over the world. The United States has increased the issuance of 10 trillion dollar notes, and the number of notes in the world has become 20 trillion dollars. World Bank notes = 65,438+00 trillion dollars for people all over the world+65,438+00 trillion dollars for the US government. World wealth belongs to people all over the world-> It has become half owned by the people of the world and half owned by the American government. In this process, the US government transferred half of the world's wealth from people all over the world to its own hands without paying any labor (ignoring printing money). Finally, the banknotes issued by the US government were transferred to those in power through corruption and insider manipulation. This is naked plunder. Similarly, other non-global currency countries are robbing their own people, while global currency countries (such as US dollars, euros and pounds) are robbing people all over the world. This plunder itself is extremely unfair. Therefore, Satoshi Nakamoto put forward the concept of decentralized cryptocurrency (Bitcoin) to replace the central bank currency as digital gold as a global currency.

Bitcoin is similar to gold: rarity, easy storage, permanence and value recognition (that is, value will not disappear completely because someone gives up). When the document was published, Bitcoin had more than 36 million addresses, which means that its value has been recognized by quite a few people. Even if some of them give up Bitcoin, there are still more than10 million people who recognize Bitcoin).

Tulip bubble: Also known as the tulip effect, it originated from the historical events in Holland in17th century. Known as the earliest recorded speculation in human history. /kloc-in the 0 th and 7 th centuries, tulips in the Netherlands once caused unusual madness in the flower trading market. Tulip bulbs are in short supply and the price is soaring. The tulip market in Holland has become a disorderly gambling pool for speculators. By the early 1930s of 17, this fashion had led to a classic speculative frenzy. People no longer buy tulips for their intrinsic value or ornamental purposes, but expect their prices to rise indefinitely and make profits (this idea of always expecting someone to bid higher has long been called the greater fool theory of investment). However, all financial bubbles are as fragile as their names in the real world. When people realize that this kind of speculation does not create wealth, but only transfers wealth, someone will wake up. At this time, tulip bubble should be shattered. At some point, when a nobody sells tulips-or, more boldly, sells tulips short, others will follow suit, and soon, the enthusiasm for selling will be the same as that for buying them before. As a result, the price collapsed, and thousands of people lost their money in this eternal collapse. (from Baidu Encyclopedia)

The difference between the two: tulips will collapse with the decrease of heat, because they are not easy to preserve and stored for a long time. With reference to crude oil futures falling to negative prices in 2020 (because it is not easy to store, it will cost a lot of storage fees). But bitcoin is different. When Bitcoin was born, it was born as digital gold. It is naturally easy to store, permanently stored and rare, so Bitcoin will not collapse. However, it is entirely possible that the price of Bitcoin will fluctuate greatly as the market changes. This is entirely possible. Referring to the historical price, Bitcoin has experienced at least three great ups and downs, while gold has experienced at least two great shocks in history, but there has never been a gold crash. So in the long run, bitcoin may skyrocket and plummet, but it will never collapse. Instead, it will gradually assume the historical mission of digital gold like gold.

Attitudes of countries towards Bitcoin:

United States: the stock exchange allows futures trading, and the US federal court defines Bitcoin as currency.

China: the Supreme People's Court issued a judicial interpretation, which did not consider Bitcoin as currency, but acknowledged the commodity and property attributes of Bitcoin. Individuals can trade Bitcoin freely, without encouragement or objection, at their own risk. Bitcoin owned by individuals and organizations is regarded as their property and protected and supported.

Australia: Australia's four major banks ":will not prevent customers from conducting bitcoin transactions.

Japan: The Japanese government cancelled the consumption tax on bitcoin transactions on April 20 17 1 day, and officially recognized Bitcoin as a legal payment method.

Germany: 20 13 In August, the German Ministry of Finance officially recognized Bitcoin as a monetary unit and a private asset. 2065438+In March 2008, the German Ministry of Finance stated that if Bitcoin users use this cryptocurrency as a payment method, they will not be taxed. That is to say, bitcoin is recognized as a currency.

Singapore: Take a completely open attitude.

99 countries (accounting for 40% of the world) have a positive attitude towards Bitcoin (legal or neutral);

Seven countries (accounting for 3% of the world) have restrictive attitudes towards Bitcoin, including China;

10 countries (accounting for 4% of the world) are illegal to restrict bitcoin;

130 countries (accounting for 53% of the world) have not yet expressed their views on Bitcoin.

It can be seen that there are more and more individuals (with more than 36 million addresses) and sovereign countries who recognize Bitcoin, and eventually Bitcoin will have the status of global currency he digital gold, which is also the founding reason and goal of Bitcoin.

The above answers are personal opinions and do not represent any investment advice, at your own risk.

# Bitcoin [Chaohua] # # digital currency # # Ou Yi OKEx#