1. What is Bitcoin?
Bitcoin (BTC) is currently the most widely used digital currency. It was born on January 3, 2009. It is a digital cryptocurrency for peer-to-peer (P2P) transmission, with a total of 21 million coins. The Bitcoin network releases a certain amount of coins every 10 minutes and is expected to reach its limit in 2140. Bitcoin is called "digital gold" by investors. Bitcoin is generated by a large number of calculations according to a specific algorithm. It does not rely on a particular currency institution to issue. It uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors and uses cryptography to ensure currency circulation. The cryptographic-based design allows Bitcoin to be transferred, paid, and redeemed only by the real owner. It also ensures the anonymity of currency ownership and circulation transactions.
Due to decentralization, global circulation, low transaction costs, and anonymous circulation, Bitcoin is favored by technology enthusiasts. Recently, traditional financial institutions such as Wall Street and multinational central banks began to study bitcoin blockchain technology. The Japanese government officially recognized Bitcoin as a statutory payment method, and more and more Japanese merchants accepted bitcoin payments.
2. What are the advantages of Bitcoin?
Freedom to pay - Instantly pay and receive any amount of money whenever and wherever you need it. No bank holidays, no borders, no restrictions. Bitcoin allows its users to have full control over their funds.
Very low cost - there is currently no processing fee or very little handling fee for the processing of Bitcoin payments. Users can include the handling fee in the transaction to get processing priority and receive confirmation of the transaction sent by the network faster. In addition, there are also merchant processors that assist merchants in processing transactions, converting bitcoins into fiat money every day and depositing the funds directly into the merchant's bank account. Because these services are based on Bitcoin, they can provide far less fees than PayPal or credit card networks.
Reduce the risk of merchants - Bitcoin transactions are secure, irrevocable, and do not contain sensitive or personal information from customers. This avoids the loss to the merchant due to fraud or fraudulent returns, and there is no need to comply with the PCI standard. In places where credit cards are unusable or fraud rates are unacceptably high, merchants can easily expand into new markets. The end result is lower costs, a larger market, and less administrative costs.
Security and Control - Bitcoin users have complete control over their transactions; it is not possible for merchants to charge fees that may or may not be found in other payment methods. Paying in Bitcoin eliminates the need to bind personal information to the transaction, which provides great protection against identity theft. Bitcoin users can also protect their funds through backup and encryption.
Transparency and Neutral - All information about the Bitcoin funding supply itself is stored in the blockchain and can be verified and used by anyone in real time. No individual or organization can control or manipulate the Bitcoin protocol because it is password protected. This makes the Bitcoin core believed to be completely neutral, transparent and predictable.
3. What are the disadvantages of Bitcoin?
Acceptance - There are still many people who don't know Bitcoin. More companies accept Bitcoin every day because they want to benefit from it, but the list is still small, and in order to benefit from the network effect, more companies still need to support Bitcoin.
Volatility - The total value of Bitcoin in circulation and the number of companies using Bitcoin are still very small compared to their possible size. Therefore, relatively small events, transactions or business activities can significantly affect their prices. In theory, this fluctuation will decrease as the market and technology of Bitcoin matures. The world has never seen any emerging currency before, so it is really difficult (and exciting) to imagine how it will progress.
In the development phase - Bitcoin software is still in beta and many unfinished features are in active development. New tools, features and services are being developed to make Bitcoin safer and more accessible to the general public. Some of these features are not currently available to every user. Most of the bitcoin business is new and insurance is not yet available. In general, Bitcoin is still in the process of maturity.
4. Detailed parameters
Chinese name: Bitcoin English name: Bitcoin English abbreviation: BTC
Developer: Satoshi Nakamoto Core Algorithm: SHA-256 Release Date: 2009/01/03
Total: 21 million block time: about 600 seconds / block consensus proof: POW
Block reward: current 12.5 BTC/block (210,000 blocks per output / about half every four years, the most recent halving time: July 9, 2016)
Risk: expansion dispute, there is a potential risk of fork
Currency unit: BTC/XBT
1 Bitcoin (BTC)
10−2 bit points (Bitcent, cBTC)
10−3 millibits (Milli-Bitcoins, mBTC)
10−6 micro ratio (Micro-Bitcoins, μBTC)
5. Common links
Official website: https://bitcoin.org/en_US/
Bitcoin FAQ: https://bitcoin.org/zh_CN/faq
Block Query: https://blockchain.info/
Bitcoin Forum: https://bitcointalk.org/
Market value inquiry website: https://coinmarketcap.com/