Bitcoin

Bitcoin
Bitcoin (English: Bitcoin [4], abbreviation: BTC or XBT) is a cryptocurrency based on decentralization, using peer-to-peer networking and consensus initiative, open source code, and blockchain as the underlying technology [6] Bitcoin was published by Satoshi Nakamoto on October 31, 2008 [7]. On January 3, 2009, the creation block was born. In some countries, central banks, and government agencies, bitcoin is considered a virtual commodity, not a currency [8].

Anyone can participate in Bitcoin activities and can be distributed through computer operations called mining. The maximum number of Bitcoin agreements is 21 million to avoid inflation. The use of Bitcoin is a digital signature through the private key, allowing individuals to pay directly to others, the same as cash, without the need for third-party institutions such as banks, clearing houses, securities firms, electronic payment platforms, thus avoiding high fees, The cumbersome process and regulatory issues can be used by any user with a digital device that can connect to the Internet.

However, since the Bitcoin blockchain can accept a limited amount of transactions within a certain period of time, it can accept up to 2,500 transactions every 10 minutes, and the transaction fee will fluctuate with the bitcoin transaction volume. In June 2017, it is less than In a 1 megabit transaction, the transaction fee is far greater than the transaction amount [9]; in December 2017, Steam announced that it would stop accepting Bitcoin on the grounds that “the transaction cost is high and the volatility is large” in February 2018. The average transaction fee has dropped from $34 in the fourth quarter of 2017 to about $1 [10], and this issue is being tried to solve the problem with Bitcoin's trading volume over a certain period of time. .

Some people believe that the advent of Bitcoin is the result of people hating the excessive sovereignty of the national sovereign currency in the commodity economy, as well as the intervention of monetary policy [11], and the long-awaited currency autonomy of the community in the gift economy [12]; the exchange rate of Bitcoin is a global investor. Increase or decrease the response [13]; and Bitcoin's underlying technology blockchain can be applied in all walks of life [14].

Usually, the first letter of "Bitcoin" refers to the bitcoin technology and network it uses, and the first letter lowercase "bitcoin" refers to the currency itself [15]. Bitcoin is also a blockchain payment system and a virtual pricing tool [16]. Because it uses cryptography to control the production and transfer of money, there is no central issuer, and it cannot be arbitrarily issued. The transaction runs in a global network, and there are special Concealment, coupled with the need to go through third-party financial institutions, has become more and more widely used and has become a medium for illegal transactions. Users can use the encryption wallet software in personal computers and smart phones, without any intermediary agencies such as banks, credit cards, online payment companies, etc., can exchange goods and services directly on the network anytime and anywhere. [17][18][19][20][21][22][23] According to Cambridge University's 2017 study, there are as many as 5.8 million encrypted wallet active users worldwide, most of which use bitcoin. [24] At the same time, there is a view that Bitcoin technology has been widely recognized and used, which has ushered in the era of blockchain. [25][26]

As a billing system, Bitcoin does not rely on central agencies to issue new money and maintain transactions. Instead, it is completed by a blockchain. It uses digital encryption algorithms and the entire network to withstand 51% of the power attack to ensure the security of assets and transactions. Transaction records are maintained by all network computers, and the validity of each transaction must be confirmed by blockchain verification. [27]

As the unit of account, the smallest unit of bitcoin is 0.00000001 (one hundred millionth) of bitcoin, called "1 Cong". If necessary, the agreement can be modified to divide it into smaller units to ensure that it is easily circulated, and the block returns halved once per output of 210,000 blocks, about 4 years, and the most recent halving in 2016 7 On the 9th of the month, the sum of such convergence ratios is bound to be limited. By 2140, there will be no new bitcoin production, and the bitcoin in circulation will always be slightly less than 21 million [28 ]. On May 12, 2019, the total stock of Bitcoin was approximately 17,695,512, and the actual tradable volume was further reduced due to factors such as the loss of the private key.