A new digital currency system This currency system is the system we are currently using. And Satoshi Nakamoto’s Bitcoin system does not have a superior central bank in charge of monetary policy. It relies on the underlying blockchain technology to create a new digital currency system. In addition to the feature of “decentralization,” Bitcoin also Drawing lessons from many "gold standard" ideas, such as: 1. Limited reserves. The exact theoretical total number of bitcoins is 20,999,000, 20,999,999.769 million, which is close to 21 million, so we basically often say that the total number of bitcoins is 21 million, but it is not. Only so much, the algorithm determines that Bitcoin will never be overissued. This is like the total reserves of gold on the earth are limited.
- It's getting harder and harder to dig. Bitcoin's reserves, in the first four years, can be mined about half. And then halved every four years, making it increasingly difficult. It's like gold that can be picked up on the surface at first, then it has to be digged three feet, and then can be found in the deep sea. At present, the Bitcoin network has undergone two halvings. The first halving was at the end of November 2012. The next halving is expected to be around May 2020, and so on, around 2140. The Bitcoin system There will be no more newly generated bitcoins.
The guy who bought two pizzas with 10,000 bitcoins
On May 22, 2010, a program developer named Laszlo Hanyecz bought two pizzas with 10,000 Bitcoins... Gold, and the issuance of Bitcoin do not require a central bank. This brings up a problem. The reason why gold is chosen as currency is because people accept it. Copper, iron, and tin with the same properties did not become currency in the end because people did not choose to trade with them. Finally, copper, iron and tin can only be commodities, while gold and silver have become currency because of people's choice. So, will people choose "Bitcoin" as their currency? At first, Bitcoin had no value. The first transaction that gained market circulation was on May 22, 2010. A program developer bought two pizzas with 10,000 Bitcoins. At the highest price this year, this Two pizzas are worth 40 million U.S. dollars. This day is called "Pizza Day" by Bitcoin lovers. When Bitcoin was low, someone in Zhongguancun bought a cup of coffee with one Bitcoin. But apart from these bits and pieces, for a long time, no one knew what this thing could do.