This section is excerpted from the original book "The Original Intention Tribe, Retrieve Your Lost Home! 》Part 2: Civilization 2.0--"Brave" game (continued from the previous section)
7, virtual encrypted digital currency --Bitcoin
Because credit currency has centralized control problems, and it is really inconvenient to use precious metal currency to carry it. Human beings have been exploring that it can be decentralized like physical gold , cannot be artificially over-issued, can preserve value and hold it for a long time, and can also use the "excellent currency" that can be carried as convenient as credit currency. This dream was tried after technological progress. In November 2008, Satoshi Nakamoto published a paper titled "Bitcoin: A peer-to-peer electronic cash system", which described in detail how to create a decentralized electronic transaction system. In January 2009, he developed a client program to implement the Bitcoin algorithm and "mined" coins, and obtained the first batch of 50 Bitcoins, marking the official birth of Bitcoin.
The core technologies of Bitcoin include: asymmetric encryption technology, point-to-point transmission technology, and hash cash algorithm mechanism. Bitcoin is an application of blockchain technology , and blockchain technology is the lowest-level technology of Bitcoin. Blockchain is a solution system that uses Internet distributed accounting, distributed storage, and point-to-point decentralized transactions. Its essence is a decentralized accounting system. To be honest, Bitcoin under blockchain technology perfectly solves the key issues of new digital currency decentralization, currency security, ease of use, and limiting the total issuance. According to Satoshi's specific algorithm, the total issuance of Bitcoin generated through a large number of computer calculations is controlled by the software algorithm, and the total number is constant at 21 million, and it cannot be over-issued. It is said that Bitcoin “miners” have “mined” 18 million bitcoins so far, and the remaining 3 million bitcoins will be mined before mining is stopped in 2140.
Because I am not a technical expert, I cannot show off my skills, so this book will not discuss in-depth technical implementation issues, and technical issues will be handed over to people smarter than me. This book will discuss more principles, core theories, and design of underlying rules. Only when the underlying rules are scientific and reasonable can the superstructure be reliable and credible.
Decentralized Bitcoin has received great attention from the world since its birth (the credit currency system needs to be reflected on). Many retailers have successively accepted Bitcoin payments. Bitcoin has been consumed in some areas of travel, shopping, technology, entertainment, media, and luxury goods in some countries. Bitcoin payments are accepted at various retail outlets of a jewelry chain in the United States. What else will be wrong with Bitcoin, which seems to be very wonderful and perfect to solve the public's demands? Could it be the best currency?
"perfect" decentralized Bitcoin has four fatal problems:
(1) The total amount is limited, and it is difficult to ensure that the money supply and productivity development are synchronized.
If the supply of money cannot increase simultaneously with the increase of productivity and cannot increase simultaneously with the society's demand for money, then it is destined not to become the mainstream trading currency. Just like a limited number of stamps, it can only become a "toy" for speculators and collectors.
The total amount of Bitcoin is controlled by the software algorithm, and is constant at 21 million coins. According to the survey, Bitcoin can also be subdivided down like a jinjiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiujiu There is a misunderstanding here. First, no matter how many decimal places are subdivided to, the total amount of 21 million coins is fixed, and the total amount of Bitcoin cannot be expanded N times. For example, we use the smallest unit of "yuan", apple 5 yuan per kilogram. Now, after the price is divided into units, the apple is 500 yuan per kilogram, but you cannot understand that the currency suddenly increases by 100 times.Unless the price of all the goods sold is reduced by 100 times at the same time, such as Apple is reduced from 5 yuan per catty to 5 cents per catty, even if the entire currency has not increased, it really seems to have increased its purchasing power by 100 times. But is this unified operation possible?
Because of the limited total amount, the Bitcoin mined is becoming more and more expensive, resulting in the price of Bitcoin soaring. You should know that everything with very unstable value is inherently not suitable for ordinary people.
(2) The manufacturing cost of Bitcoin itself is too high, and it consumes no effort for humans.
generates a bitcoin "mining". First of all, since it cannot be mined using a regular PC, special purpose-built integrated circuit equipment is required to mine, which are expensive themselves. In addition, "mining" consumes a huge amount of energy. It is estimated that the electricity consumed by "mining" every year is enough to power at least 11 million homes. This number is not static and will increase power consumption over time. It is found that the cost of generating a Bitcoin is between 40,000 and 70,000 yuan, and these huge losses have not created actual wealth for human beings at all, and they have consumed human beings’ precious energy.
(3) cannot or has no right to trace the transaction record and cannot be authenticated by real name. has actually explained that in modern society, if the mainstream currency of a country cannot be traced through transactions and cannot monitor the credit of traders, who is the happiest? That must be the happiest thing for the illegal elements, and ordinary people will only find that they cannot make money, and they don’t even have the opportunity to understand the reasons. The police cannot crack down on crime and protect the interests of the majority by tracing the flow of wealth. Therefore, absolutely decentralized and non-real-name authentication currency varieties will be a breeding ground for criminals.
We must know that legal protection of personal privacy will promote social harmony and stability, but in the context of "the strong are king, winners take all", if privacy is absolutely protected, then this society will only become a paradise for a few winners, and those who use any means may be more likely to "win".
(4) It is extremely difficult to collect taxes based on transaction volume. Since has the above characteristics, it will be difficult for the government to collect taxes. If the mainstream currency in society is difficult to collect taxes, it will be disastrous for the normal operation of society. Almost all public services will be paralyzed or lowered, and it will be even more impossible to rob the rich and help the poor. In the end, ordinary people will suffer losses. A normal sovereign state will never tolerate it.
If the above four problems cannot be effectively solved, then this currency can only be speculated and played, and it will never become the mainstream form of currency in society.
2021 China Banking Association and other joint announcements require the prevention of the risk of virtual currency trading speculation. On May 21, the State Council once again made it clear that it is necessary to crack down on Bitcoin mining and trading behaviors. CCTV has released a list of 350 financial pyramid scheme organizations, including Litecoin , Ripple , Dogecoin , unlimited coins, etc. According to the investigation, Bitcoin is still considered illegal in 11 countries and regions. At present, Bitcoin and other virtual currencies have an extremely limited impact on the country's economy and have not shaken the root cause. Therefore, countries still keep watching the changes with the mentality of continuing to observe.
Through the analysis of the decentralized digital currency - Bitcoin, we also get three important inspirations:
(1) cannot simply oppose centralization. This case tells us: to consider "centralization of service rights" and "centralization of control privileges" separately, we should oppose the centralization of control privileges, rather than the center of service rights. For example, you will definitely oppose the property management center in the community where you live to engage in monopoly and exclusive operations. This is a privilege center, but you will definitely not oppose the property service center that has been tested by the owners' committee bidding, because this is a service center. This revelation is very important.
(2) People want to use purely technical means to solve all human defects 100%, and they are still a little too hasty at the moment. We should have a transitional stage of "technical means + subjective consensus + non-privileged service center" to solve the main problems of existing currencies.The transition phase will continue until technology can completely solve all problems.
(3) The Bitcoin case opens our horizons and believes more in the power of technology. Technology will change the world and will also help lost humans back on track, including currency.
(To be continued, updated daily, serialized first and then published, thank you for your support! Original hardships, please respect the achievements of the creator)
