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The price of bitcoin has increased by100000 times in ten years. What is the principle and function of Bitcoin?
Since the birth of Bitcoin in 2009, the first price for 20 10 to buy Bitcoin is about 0.0025 USD. At the price of $27,000, the price increase of Bitcoin since its birth has reached108,000 times! In other words, the original investment of 1 yuan can buy 6 1.3 bitcoins, and the current position value is10.8 million yuan. Even though Bitcoin has achieved such amazing growth, Citibank recently announced a target price of $300,000, which is 1 1 times the current price!

On June 3rd, 2009, a hacker named Satoshi Nakamoto released the first version of the open source Bitcoin client on the Internet, and Bitcoin was born. To sum up, Bitcoin is based on a set of codes and generated by a messy algorithm. This rule is decentralized without interference from any individual or arrangement. Anyone can download and run the Bitcoin client and participate in the production of Bitcoin. Bitcoin uses electronic signature to complete the process, and checks repeated consumption through P2P distributed network. The occurrence and consumption of every bitcoin will be recorded and reported to the whole network through P2P distributed network, so there is no possibility of fraud.

According to the algorithm design, the value of bitcoin will be halved every four years. A total of * * * 265438+400 million bits of coins are not added. Because every transaction of bitcoin is recorded, people can know the whereabouts of each bitcoin, so the number of bitcoins issued at that time can also be found on the website. Unlike a country's policy of keeping the value of currency and silver stable, the price of bitcoin has been rising wildly. To thoroughly understand the source of Bitcoin, we must mention the existing financial system. As we all know, money itself has no value. At first, people bartered things, but there were many inconveniences, so it was difficult to exchange what they needed. Therefore, Yin Qian came into being. Through the intermediary in Yin Qian, different commodities can be priced according to their rarity, which simplifies the business process.

Although centralized trading also has many fatal shortcomings. 0/00% of the existing currencies and banks in the world are issued or abandoned by the national central bank, and ordinary people cannot participate in the issuance of currencies and banks or central bank accounts. If the central bank continues to issue currency silver, it will continue to dilute the currency silver in people's hands and reduce the purchasing power of currency silver. This is not shocking at all. This has happened in some countries in the world. Take Zimbabwe as an example. In recent years, the government issued a large amount of money and silver, which led to the collapse of Zimbabwe's economy and eventually forced the US dollar to introduce local legal tender and silver. Economists are considering replacing Bitcoin in Zimbabwe.