Why Bitcoin is Considered Genius (Why Bitcoin)

Why is Bitcoin considered genius? Why is Bitcoin considered genius?

This article will explain why Bitcoin can become a meaningful form of payment. What is Bitcoin?

Bitcoin is the first widely adopted technology, also well-known in the field of cryptocurrency. However, it is not where all technologies succeed or fail – because everyone wants the value and combines it with it. In fact, many experts believe this is due to the complexity of computer technology (such as hash algorithms). Therefore, although Bitcoin may not exist forever (or even become worse), they do provide incredible power to change the way the world works and the economic system.

The creators of Bitcoin not only have profound research in cryptography and optimistic about the future of Bitcoin, but they also try to create their own models to predict whether the future world will be a better world with mathematics, game theory, and other scientific theories. This study involves not only digital assets and their use cases, but also the development process of blockchain technology. Although Bitcoin currently does not have the conditions to be a new electronic storage method, it has the potential to far exceed anything else, such as gold and other traditional financial tools.

So what is driving this emerging thing?

To answer this question, let us briefly introduce the background of Bitcoin’s birth. 1. Bitcoin: Decentralized Network

We all know that Bitcoin is a peer-to-peer trading mechanism operated by a group of “miners” who provide network resources for verification, and enable secure and stable growth of the network by sending large amounts of data. Without Bitcoin, it is impossible to handle a large number of transactions. Bitcoin is such a groundbreaking system. It is managed by an organization independent of government control and is a decentralized data sharing network platform.

2. Blockchain: Immutable Database Repository.

3. Scalability Solution.

4. “Block Space Proof”.

5. “Smart Contract”, which is a distributed ledger technology that can protect users from fraud without compromising security.

6. Smart contracts.

Why Bitcoin

The appearance of Bitcoin is theoretically able to change the world into a new financial system. But it is not simply to solve the currency problem, but based on the blockchain technology and the technical architecture based on smart contracts – the “point-to-line electronic cash system”.

Simply put, “point-to-line” is a encrypted digital ledger composed of a series of digits (such as letters) and some symbols (such as text), which contains a distributed accounting method called transaction record. This data is verified by addresses on the network. If someone wants to send or receive funds, their transfer to these wallets will generate a Bitcoin balance, and the Bitcoin will be stored in a trusted node. This algorithm allows everyone to create their own accounts and interact with them. “Value transfer” means that you have an asset or just hold your tokens. All of this is created based on mathematical principles in cryptography.

Why use Bitcoin? Because they have the characteristics of decentralization, irreversibility, and tamper resistance. But Bitcoin is not just a virtual commodity; more importantly, it is built on a global computer network connected by the Internet: it turns everything existing into digital assets. Therefore, people cannot access these digital assets, and they cannot control their private keys, identity information, or anything else. So users must know that they do not need to pay others to buy and sell Bitcoin.

So what is “Bitcoin,” and how does it work?

Bitcoin has two main characteristics:

1. Open source; 2. “Consensus”; 3. “Decentralization”; 4. “Anonymity”.

5. 1inch Network is the world’s first fully private and highly secure network. Currently, most exchanges have launched BTC/USDT trading pairs, including Poloniex and BitMEX. These platforms aim to achieve this goal and allow customers to trade and profit. The core value of Bitcoin comes from the public chain and applications it relies on. Why does Bitcoin support Bitcoin? According to Glassnode’s data, Bitcoin miner revenue reached a peak of $1.2 billion in the first quarter of 2019, an increase of over 50% compared to the same period in 2020. In addition, the price of Bitcoin has risen by about 30% since the beginning of 2021. The total computing power in 2020 accounted for more than 20% of the entire network computing power. However, the average block reward mined in the first half of this year was 10.9 bitcoins.

Despite this, Bitcoin mining pools will continue to maintain strong development momentum until next Thursday.