Why Bitcoin is a great financial innovation

Bitcoin is an open source Peer-to-peer software generated by the electronic currency, digital currency, is a network of virtual assets. Bitcoin is also translated as "bit gold". Bitcoin is based on a set of cipher codes and is generated by a complex algorithm that is not interfered with by any individual or organization and is centralized; anyone can download and run a Bitcoin client and participate in the creation of Bitcoin; Bitcoin uses http://www.aliyun.com/zixun/ Aggregation/17390.html "> Electronic signature method to realize the circulation, through Peer-to-peer distributed network to check repetitive consumption. Each bitcoin generation, consumption will be through Peer-to-peer distributed network Records and told the whole network, there is no possibility of forgery. Bitcoin does not depend on a particular monetary institution, it is generated by a large number of calculations of a particular algorithm, and the Bitcoin economy uses a distributed database of many nodes in the entire Peer-to-peer network to validate and record all transactions. The peer-to-peer approach to the central feature and the algorithm itself ensures that the value of the currency cannot be manipulated by making a large number of Bitcoin, and the design of cryptography allows Bitcoin to be transferred or paid only by the real owner. This ensures the anonymity of currency ownership and circulation transactions. The special currency is designed to allow anonymous ownership and access, which can be stored in the form of a computer file (wallet) in a PC, or in a third-party hosting service. Regardless of the form saved, Bitcoin can be sent to any person on the Internet via a bitcoin address. Peer-to-peer distributed characteristics and the absence of a central management mechanism ensure that no organization can manipulate the value of Bitcoin or create inflation. The central Bitcoin is the first distributed virtual currency, the entire network is composed of users, without the central bank. To be central is the guarantee of the security and freedom of Bitcoin. The world's currency Bitcoin can be managed on any computer connected to the Internet. No matter where you are, anyone can dig, buy, sell, or charge a bitcoin. Proprietary proprietary control Bitcoin requires a private key, which can be isolated and stored in any storage medium. No one can get it except the user himself. Low transaction costs can be remitted free of charge, but eventually a transaction fee of about 1 cents per transaction will be charged to ensure faster execution of the transaction. There is no hidden cost as a to B payment means, Bitcoin has no cumbersome limits and procedures. You can pay if you know the counterparty address. Cross-platform Mining

Users can explore the computing power of different hardware on many platforms.

Status quo Germany at the end of June 2013 the German parliament decided to hold bitcoin more than a year will be tax-free, Bitcoin was identified by the German Ministry of Finance as "unit of account", which means that bitcoin in Germany has been regarded as a legal currency, and can be used to pay taxes and trade activities. [4] In August 2013, the United States Texas District Court Judge Amos Mazante, in a case of a Bitcoin virtual hedge fund, ruled that bitcoin was a currency that should be covered by financial regulation. In China, the renminbi regulations prohibit the production and sale of tokens. Since there is no clear judicial explanation for the definition of tokens, the legal prospect of bitcoin in China is uncertain if Bitcoin is included in the "token". Notice of the Ministry of Culture and Ministry of Commerce on strengthening the management of virtual currency of online games ((2009)20) June 4, 2009 "notice" said the first clear network game virtual currency range, the current online game virtual currency and game virtual props made a distinction; at the same time, the notice said, "notice" Require the enterprises engaged in related services to be approved before operating. In China, some Taobao shops are also beginning to accept the use of Bitcoin, businesses will gradually increase. October 2013, the first bitcoin quarterly "one bit" issue. October 15, 2013, Baidu's Baidu Accelerated music service announced the support of Bitcoin.