Industry information

I. Bitcoin: The "Digital Gold" That Breaks the Routine

If traditional currencies are compared to the Renminbi and the US dollar, then Bitcoin is a completely virtual digital currency. It has no physical form; it is neither a banknote printed on paper nor a visible number in a bank card, but a string of codes generated based on cryptographic principles.

The biggest difference from traditional currencies is that Bitcoin is not controlled by any government, bank, or institution. The money we use in daily life is issued and circulated under the management of central banks and financial institutions. For example, the Renminbi is issued by the People's Bank of China. However, Bitcoin is different. Its birth is based on a set of open and transparent procedures and algorithms, with a fixed total amount of 21 million coins, which will neither increase nor decrease. It is somewhat like a limited-edition digital collectible, which is one of the reasons why people call it "digital gold".

Bitcoin transactions are also quite unique. Traditional transfers require banks to act as intermediaries, verifying identities and reviewing amounts, making the process cumbersome. However, Bitcoin transactions rely on blockchain technology. Each transaction is packaged into a "data block" and linked in chronological order to form a chain. All users participating in the Bitcoin network can view these transaction records, which are completely open, transparent, and cannot be tampered with. For example, if A sends 1 Bitcoin to B, the entire network is aware of this process, and it is completely impossible for B to default or tamper with the records.

II. Satoshi Nakamoto: The Mysterious "Father of Digital Currency"

Satoshi Nakamoto is like the "creator" in the digital world, having designed the underlying rules of Bitcoin. However, after Bitcoin gradually gained popularity, he disappeared mysteriously, and no one knows his true identity. Some speculate that he is a genius programmer, while others suspect he is a financial tycoon. This sense of mystery adds a more legendary touch to the story of Bitcoin.

III. Mining: Digging out Bitcoin with a computer? The truth is...

Many people have heard of "Bitcoin mining" and think it's really like prospecting for gold, using tools to search for treasures underground. In fact, Bitcoin mining involves using computers to solve complex mathematical problems in order to verify transactions and maintain the security of the Bitcoin network.

Imagine the Bitcoin network as a huge ledger that records all transactions of users worldwide. But with so many people transacting at the same time, how can the accuracy and security of the ledger be ensured? This is where miners come in. Miners use professional mining machines (high-performance computers) to continuously attempt to solve a specific mathematical problem. The first one to come up with the correct answer gets to package the transactions made within a certain period into a "block", add it to the blockchain, and receive a certain amount of Bitcoin as a reward.

In the early days, ordinary computers could be used for mining. However, as more and more people joined in, the difficulty of the problems kept increasing. Now, specialized ASIC mining machines are required, and they consume a large amount of electricity. Some people joke that mining is like a "global math competition", except the prize is Bitcoin. Moreover, as more Bitcoins are mined, the rewards keep decreasing. Starting from an initial reward of 50 Bitcoins per block, it is halved every 4 years until around 2140, when all 21 million Bitcoins will have been mined.

IV. Controversies and Future of Bitcoin

Controversies over Bitcoin have never ceased since its inception. Supporters view it as the prototype of future currencies, believing that features such as decentralization and anonymous transactions can break the monopoly of traditional finance. Opponents, however, argue that it carries enormous risks, with price fluctuations as wild as a roller coaster ride, and that it may be used for money laundering, illegal transactions, and other illicit activities.

In 2021, the price of Bitcoin once exceeded $60,000, driving countless people into a frenzy. But it then plummeted sharply, leaving many investors with heavy losses. Countries around the world also hold vastly different attitudes toward it: some recognize it as a legal asset, while others impose strict regulations or even ban its trading.