Totokan's TOC Review: The rise of Bitcoin has drawn world attention. Is Bitcoin the technological revolution? Or an imaginary bubble? Tomcat Blockchain College will take you through the definition of Bitcoin to truly understand its value.
1, understand the definition of Bitcoin
First of all, we understand the definition of Bitcoin. Bitcoin is an open source peer-to-peer, global payment network, and digital currency. There are a few keywords, the first one is open source, and not the same as other companies or organizations, Bitcoin is open source, so there will be a variety of bifurcation bifurcation is the bitcoin source code copy Over, will also copy the original database of Bitcoin! Then issue your own tokens, such as BCH, BTG, and so on.
The open source nature of Bitcoin also ensures that Bitcoin innovations are maintained by the community. For example, BIP is now available. Many later innovations were made in the form of BIP. Open source software is more conducive to innovation. Recently, some companies such as the Bank of China and Alibaba have applied for patents on bitcoin blockchains.
Bitcoin has not been a very mature technology until now, because the current version number is still named 0.160, and a 160 version has recently been released, but its version number is still 0 in front of it. The second point is P2P. We often talk about decentralization. In fact, it may be misleading. Absolute decentralization and weak centralization, there is a gray scale between them, it is not easy to grasp, and there will be problems with absolute decentralization. To better understand P2P.
P2P We are no stranger to this technology. Bitcoin was named Bitcoin. He was inspired by Bittorrent and it was the eDonkey we used to talk about. P2P is a peer-to-peer network that also avoids the manipulation of centralised banks, or third-party regulatory agencies, on the entire digital currency operating system, or inflation and leverage derived from it.
Another point in the definition of Bitcoin is the payment network. Alipay and Wechat Payments are centralized payment networks. Bitcoin is different from them. It is a decentralized payment network. I would like to add another definition, which is programmable, but also the origin of smart contracts.
My definition of digital currency is this, point-to-point, based on cryptology, a constant amount of certain digital services that tend to be deflationary, or ownership of digital assets.
- How much is Bitcoin worth?
This topic is controversial. Some people have said that bitcoin can rise to a million dollars, some people say 500,000 dollars, and some people say that I don't sell 200,000 dollars. I try to use some tools to analyze how much Bitcoin is worth?
Mining now, digging a bitcoin, around July 2017, should be around 25,000, by the end of 2017 it should be around 340,000 yuan, because mining is a economies of scale, your scale is bigger, the cost is lower Similar to manufacturing, its price changes with your scale, so it is about 30,000 to 40,000, that is, the cost of bitcoin mining one now should be about 6000 US dollars. From the perspective of cost pricing, a bitcoin should be worth 6000-7000 dollars, the lowest is the price.
At the time of the last plunging, many people hunted bottom at $6,000. This is the reason. Whether Bitcoin may fall below US$6,000, the answer is likely because of market panic, policy, and liquidity, because the exchanges have an impact on the market. If we know the cost price, we should rest assured that At least, when it crashes, don't easily abandon Bitcoin in your hands!
The second is to measure the price of Bitcoin from the perspective of market value. The market value of a stock is the PE price-earnings ratio multiplied by the EAT, which is the net profit of a company, divided by the number of shares issued, which is the price the stock should have. Let's take a look at the Bitcoin as a miner. All miners last year's income should be between 3 billion and 4 billion US dollars.