Bitcoin fire, someone took it as a question to Warren Buffett questions

Bitcoin fire, some people take it as a question to the Warren Buffett questions, some people put it as a fund donated to one foundation, and some people put it as an investment products of the thrill of speculation. Three years ago, this digital virtual currency, generated by Open-source Peer-to-peer Software, had a market price of only 0.03 dollars in initial public trading, and in April this year, 1 Bitcoin had soared to 266 dollars, or more than 5,000 times times.

For most people, Bitcoin is a gorgeous riddle, and experts are opinions about their future, some think it represents the future currency, others call it the "most dangerous currency". U.S. government departments are eager to put this new thing under management.

Speculators: Bitcoin is a futures

"In the beginning of April, the amount of people playing Bitcoin in China has increased, mostly to make quick money for investment."

The future currency? The speculators Yang Yi the concepts of Bitcoin. "Bitcoin is a gifted design, an anarchist currency, and it has nothing to do with me." For me, Bitcoin is a futures, except for the clouds. ”

In Yang Yi's view, the greatest value of Bitcoin is speculation, the possibility of its crazy value-added. "In 2009 and 2010, 1 dollars could be exchanged for more than $1000, and now 1 Bitcoin could be traded for more than 100 dollars," he said. Such a rise would be enough to attract any investor. ”

Yang Yi early this year to contact Bitcoin, March joined the investment Army, and his last regret is not a little earlier in the market. "I now add seven or eight groups, every day with people analysis Bitcoin trend." Yang Yi told reporters that from April onwards, the domestic play Bitcoin, most of the people are to make quick money for investment, "some big shot is millions, one day can earn tens of thousands of", and the hands of the people who have Bitcoin think will rise. "As long as it's bullish, it's fun." ”

According to Yang Yi recalls, at the beginning of this year, a bitcoin exchange for RMB 100 to 200 yuan, beginning in March, the value of Bitcoin soared, two fell, from 1550 yuan High, rushed down to 432 yuan, rebounded back to 918 yuan, and now plunged back to about 688 yuan. "A lot of time to make a big jump, when the crash also ate a bit of loss, in general or to make money." ”

Today, Yang Yi is handling the value of Bitcoin every day, in order to keep an eye on the market, even have to shorten the sleep time. "Bitcoin has no ups and downs, trading is open 24 hours. Because the chips are less, the price of Bitcoin is easy to be controlled by the banker. Yang Yi told reporters that the most attractive place for Bitcoin is the thrill of a sharp jump, "wake up, your money may be more than one times, or perhaps less half, is so crazy!"

"Miners": Bitcoin becomes harder to "dig"

"24 Hours of work, a month or two to dig into a bitcoin."

Some people are fascinated by the thrill of the surge, and some are simply "playful".

In the 2009, a researcher named "Zhong Ben Cong" first proposed the concept of "Bitcoin", which describes a "free currency" that is not managed by a cryptographic algorithm that is generated through the network. To get Bitcoin, just let the computer run specific software. Software to do a lot of calculation of the process is like in the mountains to seek ore, "Bitcoin miner" the word came into being.

2012, Ahan (net name) out of chance to know the existence of Bitcoin, the computer department graduated "geek" was deeply attracted. "I heard it was fun to run a computer program to get money," he said.

Because the number of operations is too large, the general computer can not meet the "digging" demand, in July 2012, Ahan spent two months of salary, to his computer installed four graphics cards, from the beginning of the "miners" career.

"Digging is actually very simple, mainly through computer graphics card calculation." Install a Bitcoin official client, register a personal wallet, download a mine-digging program, and start the miner's life. "However, due to procedural constraints, the mining of bitcoin is becoming more and more difficult, even if the use of tens of thousands of yuan ore machine, the benefits are very limited." At present, Ahan's mine machine works 24 hours, but it will take a month or two to dig into a bitcoin.

The bits that you dig up can be sold on the website, and you can save them for a price hike. To exploit bitcoin more efficiently, even people use viruses to build "botnet" or to steal computing resources from public servers.

Regulator: Bitcoin is the most dangerous currency?

America's oversight of this virtual currency has gone a step further

Since the advent of bitcoin, there has been a constant questioning of its security. A security breach at the Mt.Gox bitcoin Trading center on June 19, 2011 caused 1 Bitcoin to fall to 1 cents at one point because a hacker stole MtGox's security certificate from a Trojan-infected computer, transferring bitcoin to his account and selling it. Despite a few minutes later MtGox shut down and canceled the abnormal transaction in the hacker incident, the bitcoin price rebounded back to 15 U.S. dollars, but still has the equivalent of more than 8750000 US dollar account affected.

This is also the Achilles heel of Bitcoin: as a "currency on the Web", the damage to Bitcoin from hacking attacks will be even more lethal.

And as the size of the bitcoin expands, governments are beginning to pay attention to this emerging thing. The United States Government has embarked on the inclusion of such "no government currency" under the control of the authorities concerned.

May 15, the U.S. Department of Homeland Security won the court permission to freeze the world's largest bitcoin exchange Mt. Gox owns two bank accounts, which means that the US's regulation of the virtual currency is a real step. The Mt.Gox Exchange in Japan is the real currency for governments in the world over half of bitcoin.

At the same time, Mt.Gox's ceo--karpeles is now being sued by U.S. Customs for currency trading without registering, and is facing a hefty fine or a five-year prison sentence. On the day of the incident, the exchange price of Bitcoin fell by 9%.

The general view is that the recent plunge in Bitcoin has been a cause of concern to regulators. But it cannot be denied that, for a long time, market managers have been concerned that Bitcoin is being used to launder money or even to finance terrorist activities, or that it is part of a crime of fraud.

This concern is not groundless. In late August 2012, Bitcoin Savings and trust were closed by the owner and left allegedly about $5.6 million trillion in debt, which led to his alleged manipulation of the Ponzi scheme, while a website called the Silk Road was suspected of using bitcoin for drug trafficking and smuggling.

Currently, Bitcoin is still considered a legitimate virtual commodity by most countries, yet its currency attributes have not been confirmed yet. If we cannot put ourselves into the country's monetary system, then Bitcoin will not escape the fate of marginalization, but even for the trust of regulators, Bitcoin has a long way to go.

What is the end of Bitcoin? I'm afraid only time will give you an answer.

noun explanation

Bitcoin

In short, bitcoin is a digital currency generated by Open-source Peer-to-peer software. Unlike most currencies, Bitcoin does not have a "central bank", but rather uses distributed databases across the network to record currency transactions and uses cryptography to ensure the safety of all aspects of the money circulation.