What does Bitcoin mean? How to mine graphics cards?

To fully understand the origin of Bitcoin, we have to mention the existing financial system.

As we all know, money itself has no value. At first, human beings traded by barter, but there were many inconveniences, so it was difficult for them to exchange what they needed. So money came into being. Through the intermediary of money, different items can be priced according to their rarity, which simplifies the transaction process.

Although currency trading has many advantages, it also has a fatal disadvantage, which is centralization. 100% of the existing currency in the world is issued or abolished by the national central bank, and ordinary people cannot participate in currency issuance or central bank accounts. If the central bank continues to issue money, it will dilute the money in people's hands and reduce the purchasing power of money.

In order to solve this problem, Satoshi Nakamoto, the father of Bitcoin, put forward the concept of decentralization in 2009, that is, issuing money on open source software, and building a P2P network on it to build a decentralized payment system. Many readers don't understand this. What is decentralization? What is P2P network?

Let's take the popular WeChat payment in China as an example. Although both WeChat and Bitcoin are virtual payment systems, every transaction of WeChat must be conducted in the banking system, and the bank is the center of WeChat payment. Decentralization is a peer-to-peer transaction, which is not affected by any other factors.

P2P network is easy to understand. P2P is the abbreviation of peer-to-peer, that is, "partner-to-partner", also known as peer-to-peer network. For example, if you download a movie through iQiyi, you will transfer the movie from the iQiyi server to your computer. And if you download a movie from P2P resources, it is downloaded from the computers of other P2P users who already have this movie resource. If other P2P users need this resource, they can also download it from your computer.

Bitcoin is like this movie. It does not exist in a central server like the central bank, but in hundreds of millions of computers around the world. Since it has been issued, theoretically, no one can control the number of bitcoins, nor can it artificially manipulate the currency value by making a large number of bitcoins. The design based on cryptography can make bitcoin only transferred or paid by the real owner, with excellent security.

How did Bitcoin come into being?

First, let's take a look at the "blockchain". The core principle of Bitcoin is "blockchain". Each block corresponds to a bill. A blockchain connects all the blocks, and any transaction information and transfer records are recorded in the blockchain. It should be noted that the blockchain exists throughout the Internet, so any bitcoin holder is not worried about the loss of bitcoin.

Every once in a while, the Bitcoin system will generate a random code on the system node, and all computers in the Internet can look for this code. Whoever finds this code will generate a block and get a bitcoin. This process is what people often say. Mining. Calculating this random code requires a lot of GPU operations, so miners buy massive graphics cards to get bitcoin profits faster, which is also an important reason for the recent shortage of graphics cards.

Some people say that there will be more and more bitcoin, and finally there is no value at all? Of course, Satoshi Nakamoto also thought of this problem. There is also a mechanism in the bitcoin system: the total amount of bitcoin is limited. The total output in the first four years is10,500,000 BTC, and the output is halved every four years. 5.25 million BTC will be generated in the fourth to eighth years, and only 2.625 million BTC will be generated in the eighth to 12 years. In the end, the total amount of bitcoin generated by * * * is close to 2 1 1,000,000 BTC.

Answer the last question and tell me what I know. Why use graphics cards to mine? Because it is a lot of data calculation (the size of the bill database to be downloaded has exceeded 20 g), the CPU speed of a single motherboard is too slow, and the operation does not need additional redundant display screen, so more than a dozen high-end graphics cards are used for parallel operation. There are ready-made mining machines on the Internet, but the current situation is that the mining machines have fallen behind for more than ten days and need to be updated. -the reason is that the mining speed is fast. In order to keep the number of bitcoins generated in the world unchanged every day, the program will automatically increase the difficulty of data operation, and your operating tools will obviously fall behind. The biggest problem in the operation of the combined graphics mining machine is the mining cost, that is, the electricity fee, the machine operation fee and the cooling fee of the computer room, which consumes a lot of electricity and the electricity fee is amazing. Now dozens of miners jointly rent land, and the factories are generally near the South Hydropower Station. The reason is that power plants abandon water to generate electricity, because the cost of not connecting to the power grid is very low, the electricity price is low, and people in power plants can earn extra money.

The official statement is:

The concept of Bitcoin was first put forward by Satoshi Nakamoto in 2009. According to Satoshi Nakamoto's idea, open source software and P2P network were designed and released. Bitcoin is a P2P digital currency. Point-to-point transmission means a decentralized payment system.

But how to put it simply? There is a lot of complicated knowledge ignored here, just to give you a simple understanding. If you want to go deeper, you need to read books.

But it's impossible for you to understand by a few hundred words.

Simple version:

Bitcoin is a virtual currency. Bitcoin relies on blockchain technology.

We must first understand what a blockchain is. Is it a distributed ledger? How to allocate? If you have a ledger, record the transactions in this community in the past ten minutes. Ten minutes later, another person copied your account book and updated the record of the new transactions in these ten minutes. By the way, I'll tell you the new record just now for you to record in the book. Every ten minutes, a new person comes and opens a new account book.

If you want to modify the household registration book, you need more than half of the people to agree, which is basically impossible. At the same time, it doesn't matter if your book is lost, because others still have it.

Then why do you keep their accounts? Because if you keep an account, you will get benefits, and every time you get the right to keep an account, you will get bitcoin.

So bitcoin is the virtual currency of this network.

What is mining? Just to fight for the right to keep accounts. Its principle is very simple, and it adopts the principle of workload proof. Many miners look for suitable hash codes through machine operation. The quickest way to get the correct hash code is to win.

Hash code can only be obtained by enumeration, and the parallel operation ability of graphics card is very strong, which is suitable for this kind of operation, so miners use graphics card to mine.

The madness of bitcoin continues.

After experiencing a hard fork in early August, Bitcoin was like being beaten with chicken blood, and once again opened the "rocket lift-off" mode. Directly from August 1, 19050 yuan, the current price has risen to 29,500 yuan (currency net price). The cumulative increase in two weeks is very close to 50%.

In this process, people are still asking two questions repeatedly for almost eight years: How high can Bitcoin go? When will the next bitcoin crash happen? However, the past facts also prove that no matter whether they are pessimistic or optimistic, almost all the people who answered these two questions were hit in the face.

However, there is a basic question that can still be asked. What is the main reason for this bitcoin "rocket launch"?

Scarcity is still the foundation.

The author notes that with the source of the whole wave of "virtual currency" and the corresponding systems such as blockchain and virtual currency operation rules becoming the first point of reality, Bitcoin, which was born in 2009, is still "scarce" compared with traditional finance.

This includes the blockchain technology itself, the mining system setting of Bitcoin itself, and even the market scale advantage occupied by Bitcoin when it first appeared in the whole "virtual currency" trend. You can even say that virtual currency can be divided into two categories, one is bitcoin and the other is not bitcoin.

This scarcity, which is independent of the traditional financial system, is like a magnet, attracting more people to put money into this "melting pot". Their reasons may be speculation, trying, or even gambling.

The author also found that Ronnie Moas, a researcher at Standpoint, a market research organization, published a 122 page research report. His own conclusion is that before the arrival of 20 18, that is, in less than five months, Bitcoin will reach 33,370 yuan, about 5,000 US dollars. The reason given by Moas is also simple: "At present, the total value of all stocks, bonds, gold and cash circulating around the world exceeds 200 trillion US dollars, and a small part of them will eventually enter the market of Bitcoin and other virtual currencies in various ways." To this end, he also gave a possible valuation of the future bitcoin final market-2 trillion US dollars. At present, this figure is only $56 billion, and the gap is still 35 times according to this estimate. Moas even described the current bitcoin market like this: "We are watching a 90-minute football match, but it actually started 15 minutes."

Besides scarcity, what are the reasons?

After the establishment of scarcity, it is the "degree" of people's investment in assets or assets that determines the price fluctuation of Bitcoin. The popularity in search engines can be said to be the best indicator.

Chris Burniske, a foreign bitcoin player, combined the price trend of bitcoin with the trend of Google and found a very interesting result: when more and more people search for "bitcoin", the price of bitcoin will also rise. And the correlation between them is getting higher and higher.

You can also consider some short-term reasons:

Soaring up, is it far to fall back?

Just like a seesaw, all kinds of financial systems with human intervention will have their own volatility. After all kinds of inflation, it is often followed by a plunge.

Bernisk also gave his own indicator: If the price of Bitcoin doubles within 30 days, then this period can be directly called "bubble period". According to this indicator, the price increase of Bitcoin in the last month has actually reached 2 15%, which is undoubtedly a "bubble period".

Will these laws appear in the next period of time? Nobody knows. However, judging from the increase of nearly 400% since April this year, the possibility of a rapid decline in Bitcoin is still growing. And this autumn will definitely become the biggest one.

Vernacular, fishing for dry goods!

Explain the meaning of the so-called distributed accounting system and blockchain.

Mining is not really mining stones, but calculation, trial and error and safety.

What is the source of bitcoin value? Will the bubble burst?

Key words: bookkeeping, segmentation, calculation, value, knowledge, trust, bubble.

First, illusory, genius ideas, innovative bookkeeping.

What exactly is Bitcoin? A man named Satoshi Nakamoto, of course. I don't know who this man is now. I don't know whether it is a person or a group of people. He came up with an idea, a brand-new idea.

Everyone should have heard this sentence. Bitcoin is a distributed accounting system.

What do you mean? Distributed accounting system is relative to centralized accounting system. What is a centralized accounting system? This is a system similar to a bank. You transfer the money in the bank card to Zhang San, and the bank will keep an account in his information center. You transfer a sum of money to Zhang San This is the so-called central accounting system. Only the center can remember, others can't.

What is a distributed accounting system? The distributed accounting system means that everyone can record, you can record and I can record. Everyone should pack all the transaction records and put them in for a period of time. Bitcoin's algorithm stipulates that it is recorded every ten minutes.

Every time you pack a bag, the bag is equivalent to a piece. After you finish typing this package, others will generate the next block in the next ten minutes and then connect it to your block. Let's think about it. Is it like a chain, a chain or a so-called blockchain to record data? As long as the chain is long enough, this constitutes the so-called blockchain.

There are two problems at this time. First, why do people pack building blocks? Second, how to ensure safety, and what about false accounts and wrong accounts?

The first advantage of packaging building blocks is that you can get rewards. This reward is the so-called bitcoin, which is actually illusory and just an idea. And this number will be halved every four years, so overall, the total number of bitcoin in the end is about 2 1 10,000.

The second is how to ensure that accounting records are correct, and how to ensure that there are no false accounts and wrong accounts. This is because his bookkeeping is traceable or competitive.

If you make a mistake, you pay more or you make a mistake. Then someone else's account doesn't match your account, and you are exposed. This is probably the case, and the security and accuracy of Bitcoin are guaranteed. Then the longest chain S in the whole network is accurate, true and safe, which is the advantage of distributed accounting, and no one can tamper with it.

Having said that, to sum up, bitcoin is a reward you get. This kind of reward is what you get in a module of distributed bookkeeping. At the same time, due to the connectivity, openness, competitiveness and computational security of mathematical equations, you can guarantee the accuracy of this accounting method and the security of Bitcoin.

Second, mining is actually a calculation problem.

What exactly does mining mean? Just now, we talked about the basic principle of Bitcoin, the quantity of Bitcoin, the bookkeeping method of Bitcoin, and the security of Bitcoin. What we need to talk about now is who is qualified to keep accounts. This is the meaning of mining.

Who is qualified to keep accounts? The answer is someone who can do math problems, which means mining. When you solve a system of equations, you can keep an account. Note that this equation group is difficult to calculate, and it is something called hash equation.

The characteristic of this equation is that you can find Y if you know X, but how can you know X if you know Y can't inverse X?

That is to try one by one. This is the meaning of excavation. Mining is not taking a hoe, but the computing power of a computer. The CPU tries the speed of numbers one by one.

Simply put, if you can work out a solution, you are qualified to package. What about after you package these data? Announce to the whole network, no problem, you can get the reward of bitcoin, so you can say that bitcoin is the solution of equations, or you can say that bitcoin is these rewards, which is almost the same meaning.

Third, the source of value, everyone's trust

I used to have an article reminding everyone to buy Bitcoin at 16000 USD and 17000 USD. Looking back now, I am shocked. It has risen to 29,000. Many people are asking me why Bitcoin is so valuable and where does the value of Bitcoin come from? Isn't he an illusory idea?

The value of bitcoin comes from several aspects.

One is security, the other is knowledge mechanism, and the third is scarcity of quantity.

First, according to my previous introduction, everyone found it very difficult to crack Bitcoin and make mistakes, because the hash equation is difficult to work out. With such computing power, you can make such a package. At the same time, when packaging, it can also avoid accounting errors, so its security is very high. When something is not easy to make mistakes, it has a valuable foundation. Trust is the foundation of all values. When you can't tamper with it, when you are very right, when you are highly skilled, people will trust you.

It's like the earliest calculus. Although it is also an illusory thing, it can be used to calculate acceleration, calculate margin and solve accurate calculation problems in life. Then, although it has no physical form, it is also very valuable. If you learn and get into a good university, you can also come out to earn money.

For another example, many people say that Bitcoin has no national credit endorsement. Why does it have a chance to become a currency or an investment?

The key is that its trust comes from technology. Do you think why the plane can fly in the sky is because of the national credit guarantee? No, it's because of fluid mechanics, aerodynamic support and scientific knowledge. Science is a methodology brought by the underlying logic, and its credit value is also very high. You don't even need the guarantee of national credit.

The second is the scarcity of quantity. The reward of bitcoin will be halved every four years, and the total number of bitcoins is only 2 1 10,000. The source of value of a thing is probably two parts. The first is scarcity, and the second is that everyone wants it and everyone trusts it.

For example, instant noodles can't be clearly marked, because you can eat up to five packs a day, and I can pay 20 packs a day. How can this thing be valuable? And diamonds, diamonds, how useful do you think it is? There is such a situation, but it is rare because it is rare. Then people will think he is valuable.

The third is the * * * knowledge mechanism, that is, many people believe in him and many people want him. Think about it. Three yellow eggs is not much, and there are not many toads in one eye. Why don't you want them? Or is it not that valuable?

This is a * * * cognitive mechanism. Speaking of which, I remember the first time I drank beer, it tasted like horse urine. It's terrible. I'm going to throw up. We all call him swill.

But now because of all kinds of advertisements, because everyone says what is cold and what is malt, in fact, to tell the truth, I don't like drinking coke. But with constant stimulation and the formation of the same idea, his value will be revealed. When everyone says that he is right, he may really be right.

Fourth, will the bitcoin bubble burst and when?

First of all, I want to say that bubbles and values are the same in a certain period of time. You say bitcoin is worthless, but it has been rising higher and higher for so many years. You said it was a bubble, which didn't make any sense.

In a longer period of time, mankind will destroy the earth, explode, and all good things will not exist, but not all things are bubbles. Obviously, we can't look at it that way. Again, for a period of time, value means a bubble.

So when will the bitcoin bubble burst? Of course he will break it, but there are strict logic and reasons for breaking it.

Then we should start with the source of bitcoin's value, such as its cognitive mechanism, such as people's trust in him, such as the belief and investment value that everyone thinks he will rise.

So when is this worth breaking? For example, if someone can crack bitcoin, such as bitcoin bookkeeping is no longer safe and can no longer provide a scarce means of maintaining value, then the bitcoin bubble will burst.

Another situation is that people's pursuit of Bitcoin is replaced by something else. For example, if there are other technological innovations, you can buy other things with funds, resources and debts, and the yield of investment in updated technological products is higher. Then bitcoin may be competitive and its bubble will burst.

Many people criticize the bursting of Japan's housing bubble, but they don't know that other Asian countries are also rising after Japan's economic downturn. In particular, the rise of China made it possible for funds to go to sea to earn money, which led to the Japanese housing price bubble.

In short, the bubble either burst due to its own defects, or there is something better to compete with it and will not burst by itself. When something goes beyond Bitcoin, when the defects of Bitcoin itself are discovered, the bubble of Bitcoin will also burst.

Conclusion. Bitcoin is actually a genius idea, a distributed accounting system and a reward method. It is highly secure, difficult to crack and scarce.

The meaning of mining is actually the meaning of trial and error in calculating equations. The ability to dig is actually your computing power. This is just a metaphor. When you get rewards for mining, you can get corresponding bitcoin rewards, such as bitcoin, mining, digital currency and blockchain. These things have no physical form in essence, just genius ideas.

The value of bitcoin comes from people's cognitive mechanism, from people's trust in technology and from its own scarcity. If you believe, there will be, if you don't believe, there won't be. Everyone believes it, yes.

If you want this bubble to burst, either he has serious problems and is caught, or he has something better to compete with, form a stronger knowledge mechanism, better technology and higher income, then the bubble of this bubble will burst. Otherwise, at any time, bubbles and values are the same thing.

Bitcoin is a virtual currency, and the total amount is set at the beginning, so there is no inflation.

Bitcoin, like minerals, is buried in a mountain of data. You need a computer to develop bitcoin. The better the graphics card, the better the performance of your computer and the higher the mining efficiency. But bitcoin is like an ore. The less mining, the more time to calculate mining, and the higher the investment cost. If it's Xiaobai, I suggest not to use bitcoin, and buy bitcoin directly to appreciate.

Bitcoin is a virtual currency. It is a P2P digital currency. Point-to-point transmission means a decentralized payment system. Unlike most currencies, Bitcoin is not issued by a specific monetary institution. It is generated by a large number of calculations according to a specific algorithm. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors, and uses cryptography to ensure the security of all aspects of currency circulation.

The design based on cryptography can make bitcoin only transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions.

The biggest difference between Bitcoin and other virtual currencies is that its total amount is very limited and extremely scarce. The monetary system once did not exceed1050,000 for four years, and the total will be permanently limited to 21050,000. Bitcoin can be cashed and converted into the currencies of most countries. Users can use Bitcoin to buy some virtual items, such as clothes, hats and equipment in online games. As long as someone accepts it, you can also use Bitcoin to buy real-life items.

Bitcoin mining Bitcoin is produced by mining. Generally speaking, bitcoin mining is to use your hardware equipment to calculate the mathematical problems of SH265 algorithm, confirm online transactions, and ensure the security of the entire network system. As a reward, the bitcoin system will give a certain bitcoin reward according to the contribution of miners.

Bitcoin mining has gone through three stages (CPU, GPU and ASIC). CPU: It uses our ordinary computer to mine.

GPU: that is, mining with graphics cards, which is what I often say: burning graphics cards to mine.

ASIC:ASIC is an integrated circuit specially designed for bitcoin mining. Since Avalon produced the world's first ASIC mining machine in 20 12, bitcoin mining has been completely subverted. At present, it has entered the stage of ASIC professional mining, Avalon mining machine has also been upgraded for three generations, and the fourth generation chip of Avalon is said to be coming out soon.

Some developed countries in the west have a relatively loose attitude towards Bitcoin, while developing countries are relatively strict. At present, China only recognizes the commodity attribute of Bitcoin, but does not recognize the monetary attribute of Bitcoin. Because bitcoin transactions are difficult to track, bitcoin may be used for illegal activities such as money laundering and terrorist financing. Therefore, most countries are cautious about Bitcoin.

Let's say something simple and easy to understand.

The mining mechanism of Bitcoin is POW, which is the proof of workload. Bitcoin miners calculate the hash value to decide who will dominate the new block. At this time, it is necessary to show the difference through workload proof. The hash value of bitcoin is that each machine can calculate one value at a time, but this value is not necessarily the most up to standard, so whoever calculates the most times per unit time has a greater chance.

Graphics cards provide computing power, and a lot of calculations can give you more possibilities, so there is a reason why people are crazy about buying mining machines and have to join the mine pool for mining. Hubox research institute-brings you the simplest blockchain knowledge.

1. Bitcoin itself is packaged as a perfect virtual currency. 2. The purpose of Bitcoin is to sneak into the destination country or region through transparent bitcoin transactions. Loot it without supervision, and then sneak past the bitcoin transaction on the bright side, a smart species invented by smart people. 3. With this premise, the bitcoin price of real money and silver must be high, otherwise the transfer of huge funds cannot be realized. Therefore, bitcoin is rising under the guidance of human and material temptations. 4. Even if platform trading is completely banned in China, foreign countries will certainly continue, because not all countries have found problems. If you can't cheat, you can cheat others. It is absolutely feasible for you to trade with hard-earned or copied bitcoin abroad, and it is bound to be virtual currency when you come back with real money. After all, regulating real money is more mature than regulating virtual currency. [Cool] [Cool]