In recent months, the name bitcoin has burst onto the scene like mushrooms, and all sorts of information about bitcoin has been flying around.
So what exactly is bitcoin? Why the sudden popularity?
To put it crudely, Bitcoin is a new type of online virtual currency with no unified issuer and no restrictions on the use of national borders.
The above paragraph will be broken down into three parts to describe in detail:
1. "There is no single issuer" :
Bitcoin is not a currency issued by a bank or some institution in a country, which determines that Bitcoin cannot be randomly issued or copied. Our traditional currency is devalued by the constant printing of money by unified issuers, which amounts to a forced "shrinkage" of our personal assets, a process we can only passively accept. This is busd to bnb. Since the total amount of Bitcoins is already constant (there are only 21 million of them), our holdings cannot be "diluted" any other way. And as more people accept and recognize bitcoin, its purchasing power is likely to continue to increase, because there are so few bitcoins in circulation relative to the global population!
2. "No national boundaries" :
Bitcoins can be managed and traded from any computer with an Internet connection. Traditional currency payment or cross-border remittance requires the bank or payment institution to transfer the money from your personal account and then transfer the money to the counterparty account according to your instruction. The whole operation is completed by the bank and payment institution, and there is a commission fee. For example, the commission fee of cross-border remittance is as high as 3%~10%, which is extremely high. And bitcoin transaction is just like sending email, whether you and I are in the same country or not, I know your "mailbox", I can send bitcoin directly to you, each transaction costs about a few cents.
3. "New network virtual currency" :
Traditional online banking and mobile banking are actually the embodiment of your personal assets in electronic form. Your funds are recorded in the server of the bank or payment institution. If the server is attacked or damaged by a virus, your personal assets are likely to suffer losses. And the origin of bitcoin is A piece of code, it can be "A holds 1 bitcoin" this event recorded in all downloaded bitcoin software computer (principle can be Baidu "blockchain technology"), unless someone can attack these computers at the same time, otherwise any computer can re-upload "A holds 1 bitcoin" this event to the Internet. This makes bitcoin extremely secure. It also means that bitcoin has been in the Internet for as long as it has existed, and can't be eliminated unless the Internet is destroyed.
The above three points are just the basic information of Bitcoin. I believe that through the narration of Xiaobian, you should have your own understanding of bitcoin. So would you also allocate bitcoin to your assets?