How to understand and analyze the advantages and uses of Bitcoin?

Cryptographic currency is also a very popular currency today. Among cryptocurrencies, Bitcoin is undoubtedly the best, commonly known as "the king of money". What are the advantages of Bitcoin? What are the functions of Bitcoin?

Cryptographic currency is also a very popular currency today. Among cryptocurrencies, Bitcoin is undoubtedly the best, commonly known as "the king of money". What are the advantages of Bitcoin? What are the functions of Bitcoin?

This means that media, such as gold, are not easily destroyed. Legal tender will wear out over time.

This means that the medium can be divided into smaller units. Gold can be melted and made into smaller units, and the dollar can be broken down into cents. Bitcoin, on the other hand, can also be divided into smaller units, up to eight decimal places, or exactly 0.000000001(called a cluster).

The medium is not easy to be forged. Although gold and legal tender are difficult to be forged, with the development of technology, it is also possible to be forged. But bitcoin can't be forged, because it uses an encrypted hash function, which makes each one unique and impossible to be copied.

This means easy to use or easy to exchange. For example, although gold can be used for trading, it can't be used as a means of payment anywhere (it can't be paid directly in stores).

In order to maintain the value of money, its supply must be limited. For example, gold is limited, although it is not clear how much gold remains undeveloped in the world. Legal tender can be printed by the central bank, making its total amount unlimited and causing inflation. Bitcoin and bitcoin cash are limited (only 2 1 10,000).

Legal tender is the currency issued by the government and will be influenced by the government. Digital currency Bitcoin has no issuer and is an independent currency.

7. Decentralization (decentralization)

This means that it will not be controlled by an organization or group.

8. intelligence

The invention of bitcoin makes money smart, and the characteristics of money can be framed and become the best possible form of money.

Four current uses of Bitcoin

precious metal

Dozens of companies that buy silver and gold can buy silver bars and gold bars through bitcoin, which can be purchased at several bitcoin exchanges online and can be paid in many countries in the world. I believe that the payment methods of Bitcoin will be more extensive in the future.

Buying real estate and land When it comes to buying luxury goods, real estate is another industry that can completely use cryptocurrency. Recently, many real estate agents began to accept bitcoin payments, and even real estate companies with bitcoin as the theme. The website helps customers put their houses on the market and sell them at the price of bitcoin.

Booking accommodation and air tickets is one of the fastest growing industries in the world, and it is also one of the most innovative industries. Websites like CheapAir and Expedia all accept bitcoin to pay for hotels, motels and travel, and CheapAir even provides dedicated servers for bitcoin users. In addition to booking tickets, you can also use a variety of cryptocurrencies to pay for air tickets. Last year, AlternativeAirlines in the UK cooperated with Utrust, a Swiss digital payment company, to create the first website, which allowed people to pay for flights with cryptocurrency.

Equipping and upgrading games Throughout history, the game industry has always attached great importance to new cutting-edge technologies. Remember the VR craze in the late 1980s and early 1990s? Therefore, it is not surprising that companies that accept encrypted payments and micropayments will be born in the industry.

With the maturity and popularity of Bitcoin, Starbucks, Nord stron, Whole Foods Supermarket and other large chain stores have begun to accept cryptocurrency payment. The rest of the world is also joining in, and this nostalgia will continue to develop.

With the development of blockchain and digital currency, "mining" has become a hot investment project. As the saying goes: mining is not because of money, but because mining becomes rich. In the past decade, the most successful way to fight inflation was to hold bitcoin, and the most successful way to hold bitcoin was to mine. So: What are the benefits of mining?

1, mining is an anti-risk measure. Friends who speculate in money know that the market has gone up and down. Many times, our grasp of the market is not so accurate. No one knows where the bottom and top of the price are. Many people can't judge the buying and selling point of bitcoin. In the process of fluctuation, many people will be misled by the market, can't hold money, and lose money in the process of trading.

However, we can observe that some miners can cross the bull and bear, accumulate more wealth in the changes of the market and gain more benefits in the process of industry development. They can control themselves in the ups and downs of the market. Therefore, mining can often resist the decline and risk, reduce our trading behavior, and thus ensure the accumulation of wealth.

2. Mining is a controllable project. Mining has a strong subjective initiative, so it is loved by many big investors. Speculation is very passive, testing human nature, and the price of coins depends on the sky. Mining is very suitable if it is a long-term investment.

3. Anti-risk of mining. When the price of coins falls, miners' enthusiasm for mining is not as high as that of bull market, and the computing power of the whole network declines, which means that the difficulty is reduced and miners can dig out a stable amount of coins for a long time.

Is it too late to mine now?

This question is what many people want to know. In fact, this question is the same as asking whether the money is fried. It can only be said that some people may lose money, but some people will definitely make money. Especially for Xiaobai, who has just entered the circle, mining is more suitable than speculation. Compared with secondary market investment, mining is always the only way to obtain the subject matter at the lowest cost. Cheap not only means higher profits, but also investors pay more attention to the ability of miners to resist risks, which is much higher than any role in the secondary market. Miners are most likely to be the big winners who laugh last.