Bitcoin is synonymous with crypto assets, and is the most famous digital asset with the highest market capitalization among many crypto assets. Bitcoin was created to realize an electronic trading system that can be traded between individuals without going through a third party such as a financial institution. Technologies such as digital signatures and blockchains are used to realize bitcoin systems, and blockchains are drawing attention as the technology that will play a role in the Fourth Industrial Revolution. Bitcoin is often used by many investors because the characteristics that the written data is less likely to be tampered with overtime and the transparency and traceability that can be verified by an unspecified number of -It is one of the most popular elements from engineers.
Non-centralized” digital assets with no manager
Bitcoin is synonymous with crypto assets, and is the most famous digital asset with the highest market capitalization among many crypto assets. Bitcoin was created to realize an electronic trading system that can be traded between individuals without going through a third party such as a financial institution. The characteristic of “non-centralized”, in which all Bitcoin network participants are involved in management without the need for an intermediary, is one of the most remarkable characteristics of crypto assets such as Bitcoin. If you are interested in bitcoin trading, get detail from crypto engine
Allows peer-to-peer transactions
Since Bitcoin network participants approve transactions, you can send unlimited amounts of money to anyone, anytime, anywhere without being tied to a business day like a bank. The concept that users can use their money without any control is why many crypto assets such as Bitcoin are so popular.
“Digital Gold” attracting attention as an asset evacuation destination
Bitcoin is also attracting attention as an escape destination for assets because it can transfer assets without requiring an administrator like a financial institution. It is said that a lot of Bitcoin was purchased as a value-saving asset from people whose deposits were blocked as in the Cyprus crisis, and people who were worried about their fiat currencies such as Argentina and Venezuela.
Security and traceability using blockchain
Bitcoin records transaction data using a technology called blockchain. Blockchain has the feature that it is difficult to tamper with the written data over time, and an unspecified number of nodes (network participants) can verify whether the data has been tampered with. Because of these features, blockchain is drawing attention as a technology that will play a role in the Fourth Industrial Revolution, and companies as well as the nation are conducting blockchain demonstration experiments and pilot tests.
Proof of Work and Nakamoto Consensus
Bitcoin ensures the integrity of transaction data through two mechanisms, Proof of Work and Nakamoto Consensus. The Bitcoin blockchain is always “correct” due to the Proof of Work, which performs enormous calculations to generate new blocks, and Nakamoto consensus, which brings together blockchains that have the potential to constantly branch. It is a system that can be verified
Bitcoin is less economical
However, there are still many steps that must be taken before a virtual currency such as Bitcoin can be considered as an alternative to the current central bank currency. Bitcoin-type virtual currencies that support the value of cryptographic calculation costs put into mining competition are the central bank currencies created only by converting financial confidence in the government into monetary value. This is because the economy is decisively inferior.
The value of a bitcoin-type virtual currency basically balances with the cost of inputting resources such as the electricity bill that is input to create it. If it is possible to mine cheaper, that is, to generate virtual currencies, the number of participants in mining will increase. However, doing so increases the difficulty of the calculation problem in mining and increases the amount of calculation required to solve the problem, so that the mining cost will eventually catch up with the market price of Bitcoin. At the same time, it means that in order to create a certain amount of virtual currency, it is necessary to invest resources equivalent to that value.
However, investing resources equivalent to the value of a currency to create it is a waste of money and impairs their competitiveness.
