Don't wait until Bitcoin is worth a million, you can't regret it.

Don't wait until Bitcoin is worth a million, you can't regret it.

So is Bitcoin money? Does it have currency attributes? How did it develop to this day? What will the future look like?

Before I talk about these logics, I first hope that everyone understands what is money? Or how did the currency come from?

1. What is money in the end?

Do you remember what we learned when we went to school?

Currency is the general equivalent used between buying and selling.

Humans initially chose a lot of wonderful things as money, such as shells, salt, stones, fur on animals, etc., and chose a variety of things as general equivalents.

What is the purpose? That is, I am willing to hold it after I get it, and others are willing to take things to change, so the general equivalent must have a value that can be circulated. Later, it evolved continuously, and eventually most people chose to use gold as a general equivalent.

Don't wait until Bitcoin is worth a million, you can't regret it.

The reason why gold is chosen as a general equivalent is because it is scarce, the earth has limited reserves, easy to divide, and the properties are stable. You have learned in the course.

Many people today ask me a question. Are all currencies not issued under the guarantee of national credit? Which country do you think gold is issued?

Gold is not issued by any country. It is issued by nature. The reason why people choose it as currency is because of historical and cultural reasons. People do not choose iron, so iron is not our currency.

Therefore, gold is not invented by any country, and the reserves of gold are not guaranteed by any country.

Later, because gold has defects in its use, how to deal with it, how to deal with it when it is robbed? So the Chinese first invented the "communication", that is, paper represents gold, so the early days of the banknotes represent gold, but still use gold as the currency.

So there is a concept that everyone has heard of, called the gold standard. When many countries issue paper money, they are issued in accordance with the total amount of gold in our country. Therefore, our early currency is not how much the country wants to send, but with gold as the control.

Later, in 1972, there was a very big thing. The United States had a financial crisis. President Roosevelt made a very important decision and decided to abandon the gold standard.

What do you mean? How much currency do we want to print in this country? In China, there is no gold in Curry. I also print money. This is called abandoning the gold standard.

At that time, a great uproar was set off. Many governments criticized him and many supported him. No matter what, it’s too loud. After giving up the gold standard, how much does the country want to send, then can you buy money to buy something? You believe that in the United States, you can buy things with my currency. This is called issuing currency with the guarantee of state credit.

Don't wait until Bitcoin is worth a million, you can't regret it.

When did the beginning of national credit appear? It is when the paper money is out of gold. This matter is still ok, but many people still hold different views. Whether it is a good gold standard or a national credit guarantee, today's mainstream countries use national credit as a guarantee to issue currency.

What are the benefits of this?

That is, I can regulate the economy. When the economy is not working, I will send a little more because there is a multiplier effect in economics that drives economic development.

Once the country has mastered this thing, it will be fascinated with this thing. No, I must do this in the future.

So if the control is good, the total amount of money in this country is within the controllable range.

But there are also extreme cases, such as when the war, not so much, and desperately printed, and even the country's credit bankruptcy. There is indeed a small country whose credit has gone bankrupt, and all of the money has become worthless.

This has led many people to reflect on whether the currency should be issued under the guarantee of state credit, or whether it should be compared with gold, and the trend of gold standard is back.

Having said that, you understand how the currency went step by step to today, and then we will understand the emergence of Bitcoin.

2. What is Bitcoin?

Bitcoin is a "currency" based on blockchain technology. The reason why the currency is quoted is because many governments do not recognize bitcoin.

Why is Bitcoin worth today?

Yesterday we talked about the reward mechanism. You use the power to dig bitcoin. I saw the message area saying that this calculation is not a waste of electricity? Indeed, because of the high speed of the CPU when running, the power is hugely consumed.

Perhaps today, we have not found a better way for everyone to grab the bookkeeping rights fairly. So so far, we have proved that the power consumption is the main method of competing for bookkeeping.

After consuming electricity, I finally grabbed Bitcoin. Is Bitcoin useful? Isn't it worthwhile to grab it in a game mechanic?

So in the early days, in 2008, Nakamoto wrote this paper, and after setting up the Bitcoin ecology, it was called the founding block. After the first batch of bitcoin was taken out, it had no value.

You know that money has value, you have to be willing to take physical things with you, there is no value at that time.

Until 2010, one programmer did one thing. He took 10,000 bitcoins. I remember it was May 22nd, 2010. This day was called the pizza day by people in the currency circle because he took 10,000. Bitcoin changed two pizzas.

Don't wait until Bitcoin is worth a million, you can't regret it.

How much is this 10,000 bitcoin worth today?

In the first two days, when a bitcoin value was 100,000 yuan, it was worth 1 billion yuan. Now it has fallen to 700 million yuan, and a pizza is worth 350 million, so it can finally be exchanged with real goods.

It was the same as playing at first, but why did it change so much later?

At that time, Nakamoto had two important rules. First, there were only 21 million bitcoin worlds, and the total number was limited. This logic corresponds to the logic of gold, which is equivalent to the global gold reserves are limited. So much, so it can be used as currency.

But you think about an extreme thing in reverse. If there is a comet that is made of gold today, after the earth hits the earth, the gold is sprinkled on the whole earth. Is gold worth the money? Not worth it, because it is not scarce. So Bitcoin is also defined, 21 million, never more.

Second, gold was dug up. It was easy to dig gold at first. In the past, we said that a bunch of gold diggers in the western United States could start to dig gold in the sand by the river. Later, the mountain was fried, and the difficulty increased. It was necessary to use machinery, hire more people, and mine furnaces. In the future, the mountain can not find gold, and it is more and more difficult to find gold.

Bitcoin is the same. At the beginning, a block puts 50 bitcoins, and a block is released every ten minutes. After four years, Bitcoin's algorithm automatically sets the number of bitcoins in each block. Halve, reduced to 25. Every time, Bitcoin in each block will be halved, just like gold, and it's getting harder to dig.

So you understand that the logical setting of Bitcoin is exactly the same as the setting of gold.

Don't wait until Bitcoin is worth a million, you can't regret it.

So, you can understand Bitcoin as it is digital gold.

Cash, gold, and digital gold all have a natural characteristic, which is not named.

I have seen a lot of local tyrants, and when they go out to open the package, they are all a lot of cash. I said why do you use cash? He said that he didn't want others to know what I bought.

So one of the characteristics of cash is that it is not registered. What benefits will it bring to the name? The biggest benefit is that the transfer is not known to anyone, so this led to a very large application of bitcoin, which was in the drug trading network.

Unnamed leads to the frenzied use of bitcoin in the underground network, and slowly it has transaction value.

In China, when you bought bitcoin in 2013, after China bought bitcoin in RMB, you sent the bitcoin to someone’s personal wallet in the United States just like sending an e-mail. This person was converted into a local exchange. Dollar.

Have you thought about it, what does it mean? This means that your RMB will be remitted without the use of the Foreign Exchange Supervisory Authority and without using the 50,000 US dollars.

So because of its cross-border capabilities, because of its anonymity, it began to be used on a large scale in the underground network, and more and more people began to hold and trade Bitcoin.
3. Why can it fire?

The big reason is the transaction. But this has also caused dissatisfaction and vigilance in many countries. I feel that this is still the case. Money is circling around our country. It is not big at first. After getting bigger and bigger, these countries have begun to suffer.

Let me give you an example. You may have used a particularly interesting virtual currency – QQ coins.

Don't wait until Bitcoin is worth a million, you can't regret it.

Have you ever thought about the difference between this bitcoin and QQ coin? Not all in the digital world, apart from decentralization, what is the difference?

You have to seriously think about it, QQ coins have a very big difference, you can only buy, can not sell.

What can I buy and not sell? You buy RMB into RMB, you can change the decoration of the body with Q coins, you can buy pets, you can go to spend in Tencent system, but one day you want to exchange Q coins for RMB, sorry, no, national law It is not allowed.

You said that I didn't notice it before, it seems like this, why not? If the RMB is allowed to be exchanged for Q currency and the Q currency is legally exchanged for RMB, the Q currency is the currency, and the “exchange rate” will appear between the Q currency and the RMB. Q coins are worth a lot of RMB in the end. Many people will not hold RMB in the future and hold Q coins.

But Bitcoin can trade in both directions. Although it is not recognized as a currency, it has theoretically become a currency.

Don't wait until Bitcoin is worth a million, you can't regret it.

The state does not recognize this thing. After it continues to develop, it has led to some very interesting questions.

These problems are that the rich people in some countries are particularly clever. The smart people who used Bitcoin at first may be criminals. Later, the rich also did one thing. Since you regard it as a virtual currency and do not recognize its currency status, Do not recognize its asset-denominated unit, then I will buy all my life assets as bitcoin before I die.

You think it is bitcoin, not an asset, then I gave it to my son after I bought it. why? Because in the past, it was very expensive to give the son a tax on inheritance, and some countries need 40% and 50% of the estate tax. But I don't have to pay the inheritance tax when I give him Bitcoin.

As a result, some countries have begun to recognize that Bitcoin is at least the social status of asset-denominated units.

It is an asset, at least with prices, starting in Germany, then going to India, Japan, to many countries, and slowly beginning to admit it. The world is being pushed to the point where it is today, and bitcoin is getting more and more valuable.

Bitcoin has made many people start to have a dream. Here is a very important point. Why is Bitcoin soaring today?

Some people think that Bitcoin has a monetary value. Some people think that if you fire it, some people think that someone is doing it on the exchange. Anyway, Bitcoin’s trading volume today is not so big, I have a lot of , keep buying yourself.

Don't wait until Bitcoin is worth a million, you can't regret it.

One person asked a question, will Bitcoin rise or fall in the future?

We dare not predict that some people believe that Bitcoin will rise to one million dollars. Some people say that you are crazy, this thing will eventually return to zero, it will be worthless, and whoever buys it will be unlucky.

We have to understand why these two groups of people have such views? What do we have to understand its logic?

First of all, why do you think Bitcoin will rise to a million dollars? Because he has a belief, he believes that Bitcoin may one day replace the US dollar and become a global currency. As this develops, the country cannot refuse, so the future will become a truly global unified currency, just like the euro zone. The euro is the same, no longer issued by the European Central Bank, but an algorithmic issue.

If his beliefs are right, what does that mean? Today's bitcoin is likely to rise, why? You count the account. Today, the value of a bitcoin is assumed to be 100,000. The total reserve is 21 million. What is the total amount of money you calculate? The total currency reserve is about two trillion.

Now that the amount of bitcoin is not enough for the whole world, its value will definitely rise.

Some people think that I don't dare to say yes, just to let you know why some people think it will rise to a million dollars because today's value does not support the world to use this currency.

Don't wait until Bitcoin is worth a million, you can't regret it.

Others think that it will be worthless. His reason is that you think Bitcoin is very powerful. Then I will make a Liu Run coin, Zhang San coin, Li Si coin, isn't it a bunch of numbers? Your currency is still early, it must be flawed, and I am correcting your flaws must be better than yours.

There is another reason, probably because you are not allowed to replace national sovereignty, or you will eventually be shot dead.

We don't say who is right or who is wrong. We say this is faith. (Cheese life)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Understanding Binance's Decentralized Global Operating Model from SEC Lawsuit Documents

Through SEC documents, we seem to be able to figure out the mysterious mode of operation for Binance's decentralized ...


Bitcoin and BNB Shake Off Scandals, Embrace the Future

Binance's troubles may have increased the chances of spot-ETF approval, according to some analysts.


WSJ Binance Founder Changpeng Zhao Resigns and Admits Guilt

The world's largest cryptocurrency exchange has agreed to acknowledge wrongdoing and pay a fine of $4.3 billion.


Behind the $4.3 billion sky-high fine, is the sanction on Binance and CZ good news or bad news?

The $4.3 billion fine imposed on Binance, is the sanction against Binance and CZ beneficial or detrimental? Allegedly...


Analyzing the potential risks of the TG BOT track from a domestic legal perspective

Today, the Sa Sister team starts from Chinese laws to analyze the potential legal risks of the Crypto Bots in this ni...