Bitcoin within an hour of value fluctuation

Absrtact: In April this year, the domestic media has arisen the first discussion about Bitcoin, in less than three months time, bitcoin in China's upsurge spread rapidly, and from the initial mining, hoarding money to cover transactions, chip mining machine manufacturing, Mining Trust services, fund investment

In April this year, the domestic media had the first discussion about Bitcoin, in less than three months time, bitcoin in China's upsurge in the rapid spread, and from the initial mining, hoarding money to cover transactions, chip mining machine manufacturing, Mining custody Services, fund investment, such as a series of links, such as the chain of industries, Catalytic China to become the world's largest bitcoin production and trading market.

Bitcoin within an hour of value fluctuation

From the date of birth, the global investment in the Bitcoin industry has more than billions of U.S. dollars, but the size of the output of Bitcoin is not proportional to the investment. As a result of the "play" with the government issued currency, Bitcoin will never have "additional" situation, the total amount of money in accordance with the design of the predetermined rate of increase, but the increase in speed will gradually slow down, and finally 2140 to achieve total scarcity of constant in 21 million.

While most participants have confidence in the future of Bitcoin, the fear of bitcoin investment risks cannot be ignored, and if the virtual currency is not popular, it will become worthless and even suspect that Bitcoin is a new Ponzi scheme.

From hoarding money to digging mines

Bitcoin (English name Bitcoin) is an electronic currency generated by Open-source Peer-to-peer Software, originally presented by Ben Cong (Satoshi Nakamoto) in 2009. Unlike most currencies, Bitcoin does not rely on a particular central issuer, uses a distributed database of Peer-to-peer network nodes to record currency transactions, and uses cryptography to ensure the safety of all aspects of the money circulation.

The Peer-to-peer and algorithm itself ensures that the value of the currency is not artificially manipulated by making a large amount of Bitcoin, which leads to a "roller coaster" of Bitcoin since its inception. In April 2010, the market price for Bitcoin's first public trading was $0.03 trillion, which soared to 266 dollars in April, and now it has dropped to around $100. But at a recent Bloomberg "Next Big Thing" summit, 60% of participants concluded that Bitcoin would be traded at more than $500 trillion over the next five years.

As an investment, the high yield of bitcoin drives large numbers of people into the market. As one of the early contacts and investment Bitcoin, former New oriental teacher Li Yu came into contact with Bitcoin two years ago. Up to now Li Huilai has held six-digit Bitcoin, with a total value of hundreds of millions of yuan, and he has also built the bit Foundation, the angel investor in the transition bitcoin economy circle.

Less than one months ago, Li Yu to invest in a bitcoin mining equipment merchant Asicme. ASICME founder Yang Yaorui a few years ago in the founder of the network, is a typical internet thinking entrepreneur. In See 42 District founder Zhang Shenpeng published the article "Bitcoin undertaking", Yang Yaorui immediately decided to join in, one months later, he founded ASICME sold the total value of more than 5 million yuan mining machine orders, to achieve 1 million profit.

ASICME is also only a link in the industrial chain. The company buys chips from a dedicated digger chip maker, assembles them into machines and sells them, but is constrained by the problem of chip capacity, and ASICME is still hard to escape from the highly reliant upstream status quo.

As a result of traditional CPU and GPU mining efficiency, the ASIC chip is the most perfect one by specially designed VLSI IC. The United States Butterfly Company is the world's first developed ASIC chip team, but the supplier never guaranteed delivery time, the next single person received a butterfly ore machine the chance of even lower than the lottery.

The roast cat in Shenzhen and the Avalon in Beijing are the only two teams with high computing power chip research and development capabilities, the former through the collection of funds to subscribe to the foreign cooperation model, not to sell chips and mining machinery, such as the main mining equipment, and roast cat ore machine spot price than other similar products in the market 9 times times higher; The latter is by the computer network of Beihang University, "Pumpkin Zhang" in the establishment of the doctor, its business from the beginning of the sale of ore machine transition to direct sale of chips, even if the chip set up the threshold of 600,000 yuan to sell, orders are still snowflakes flying.

Yang Yaorui Scheduled is Avalon chip, in the case of the chip supply without delay, Yang Yaorui commitment to customers after the order can be shipped within 80-90 days. In addition to the sale of mining equipment, ASICME is also in the world to accept the foundry, and soon will be in the mining process of safety, power, noise and other issues of mining machine hosting services, from the collection of about 5% divided. At the same time, Yang Yaorui also plans a mobile phone application "Bitcoin wallet", through the mobile platform to complete inquiries, payment.

At the bit-money conference in Silicon Valley, Peter Vessenes, chairman of the Bitcoin Foundation, announced that 18 million deals had been achieved in the four years that Bitcoin was introduced, and the value of online transactions related to Bitcoin had reached $45 million a day. In the Bitcoin trading link, there are many participants in the country. The largest trading volume in China is bitcoin China (btcchina.com), followed by several websites including Btctrade, FXBTC, Bter, btc-e BTC, etc.

The vitality of the Bitcoin

As a virtual currency, liquidity is one of the most important metrics. Up to now, the world has nearly 50 public welfare funds to accept the donation of Bitcoin, Yaan earthquake after one fund to obtain 233 bitcoin donation.

Also accept Bitcoin transactions include currency exchange, Internet services, online products (games "Diablo 2 Project", "StarCraft", gambling, music, digital downloads), Material products (gift cards, clothing accessories, household products, electronics, books, etc.), professional services (creative services, consulting, technical support, maintenance services, Software development, etc.), such as the world's 30 types of at least 290 sites.

In addition, on the electric business platform, there are more than 10 Taobao shops to accept Bitcoin settlement, at the end of April PayPal will be a payment system as part of the settlement. Bitcoin has become a real currency in a given field, where users can buy goods online and set up a currency exchange mechanism with the sovereign currency to talk to currencies such as the dollar and the euro.

But Xijun, vice president of the Renmin University's School of Finance and Finance, holds a conservative view that the currency of Bitcoin is small when it is confined to a specific range of circulation. For now, people who hold Bitcoin are more likely to collect and wait for value added, and their life cycle will not be long if they are merely hype for investment purposes. "The way to the future is very important to Bitcoin because there are many things in the history that act as money, but they all go away." ”

One of the earliest fans of bitcoin, Li Yu from "brain residue" called Bitcoin, he uses a chart of species evolution to describe the current state of Bitcoin, which, in his view, may still be in the life of a single cell or multicellular form, and how the future evolves, whether it is an evolutionary adult or an evolutionary dinosaur.

Li Huilai that, compared with the real world, Bitcoin is definitely another real world in which there are no counterfeit banknotes, no currency issuance, breakthroughs in government and financial restrictions, sheer global, and reliance on mathematical theory. So bitcoin itself has broken through the current people on the currency, financial, trading methods, such as the inherent concept, you must fully understand the Bitcoin principle, out of the traditional thinking, with mathematics, philosophy, open source ideas to reconsider, consider and use Bitcoin.

Although Yang Yaorui's bitcoin career has only a few 1 months, but he has been very bullish on the future of Bitcoin, "last year was the era of the myth of the Bitcoin industry, when the geeks were playing, the general public did not know and did not participate, and this year is Adam and Eve out of the Garden of Eden, the whole world has just opened to humans , this is the time to enter the world, you enter early, you can do a lot of things, you can create a lot of things, so I think this year is Bitcoin entrepreneurship and enter the Golden Age. ”

It is unavoidable that, although Bitcoin's bubble ecosystem is not very serious, its regulatory problems have been widely noted. In foreign countries, the undeniable value of Bitcoin for criminals has sparked concern among regulators, and the Bitcoin Foundation has been issued a restraining order by the California Financial Institutions Department for alleged illegal transfer of funds.

Dave Goldberg, CEO of SurveyMonkey, an online research firm, argues that the merits of bitcoin-anonymity, decentralization, lack of regulation-may no longer exist in the future because of government intervention.

So far, however, the Chinese government has yet to make any public response or move to Bitcoin. Xijun said the Chinese government's regulation of the financial sector is often lagging behind, and the regulation of virtual currency is no exception, but it can be concluded that the Chinese government's supervision of the real currency is very strict, even the local currency circulation must be approved by government agencies such as the People's Bank of China, otherwise it is illegal.