Recently, “Harry Potter” author J.K. Rowling asked on Twitter “what is bitcoin” news that broke the media platform at home and abroad. Vernacular blockchain learned that the cause of the incident was on May 15th. A Coindesk reporter sent a tweet to the effect that the most optimistic message he saw this week was that a mainstream novelist asked her what Bitcoin was. And four hours later, J.K. Rowling, the author of “Harry Potter,” said in a message: “I don’t understand bitcoin, please help me explain.”
J.K. Rowling has 14.62 million followers on Twitter, and her curiosity about the Bitcoin world has successfully attracted great interest from the crypto community. Just minutes after the tweet was posted, many people in the cryptocurrency industry swarmed in and tried to give their own explanations.
V God replied that Bitcoin is a digital currency with about 18 million coins. Bitcoin does not have any support, but it is very valuable because it is like a collectible. There is a computer network (anyone can join) that maintains a decentralized global Excel spreadsheet that records how many coins each person has. People find Bitcoin interesting because no central authority can control its network, so no group can issue more Bitcoins to its friends or manipulate its rules for political reasons.
V God also pointed out that basically global digital payments, coupled with the value storage properties of gold, all of which use 21st century encryption technology to ensure that all of these operate safely.
In addition to V God, BM also responded to J.K. Rowling ’s question on Twitter.
BM tweeted that Bitcoin is an honest currency, and its monetary policy is fixed and limited issuance. It frees us from uncontrollable and unsustainable government spending. The person who controls currency issuance owns the entire world, and he can buy any asset for free on the market.
Interestingly, Tesla founder Elon Musk has also come to popularize bitcoin. Musk commented that by comparison, the large-scale issuance of currencies by governments and central banks makes bitcoin “look more reliable.” “. He also added that despite this, he only holds 0.25 bitcoins.
Interestingly, shortly after JK asked what bitcoin was, the domestic community began to circulate a picture that JK had begun to buy bitcoin, but, after verification, the purchase message was fake, JK’s Twitter There is no such message.
The people in the circle tried their best to tell JK what Bitcoin is. Although JK finally said that he still didn’t understand it, there was no doubt that he was interested in Bitcoin.
With the popularity of blockchain technology and the wealth creation effect of Bitcoin reported by the media, more and more people understand and hold Bitcoin. After more than ten years of development, Bitcoin has more and more supporters. Although it is still being hacked and attacked, it turns out that the Bitcoin network is safe, and it is still the most worthwhile investment in cryptocurrency assets.
Whether it’s its wealth creation effect, or Buffett and Munger’s repeated public occasions that they are not optimistic about Bitcoin, and even the news of the liquidation that the media reported, it has virtually popularized the relevant knowledge of Bitcoin to the public and caused more and more The attention of more and more people is that the global consensus that Bitcoin has gained is getting wider and wider, and more and more mainstream investment institutions have begun to pay attention to and configure Bitcoin assets to improve their own asset return.
However, the popularity of Bitcoin is still very long, and the penetration rate of cryptocurrency holders in the global population and even the global Internet population is still very low.
According to statistics, there are about 30 million people who once held crypto assets. As of December 2019, the global population was 7.8 billion, Internet users were 4.77 billion, and the penetration rate of crypto asset users among Internet users was 0.6%. The penetration rate of the global population is only 0.38%, and there is still much room for imagination. Even many bigwigs do not understand Bitcoin, such as the famous science fiction writer “Harry Potter” author J.K. Rowling recently asked questions on Twitter. The media in the circle has made a lot of reports on this matter recently, and many people have probably understood the course of the matter. However, most people may underestimate the impact of this matter on the blockchain industry. You should know that JK’s status and influence in Europe far exceed the imagination of Chinese people.
So, what do you know about Bitcoin?
Bitcoin is a cryptocurrency, and its total amount is constant. At present, there are only 18 million in circulation in the world. Compared with the central bank of countries can issue almost any amount of currency, Bitcoin cannot be issued indefinitely. The issuance of is strictly restricted by the algorithm, and its total amount is constant, there will be no extra issuance.
The legal currency is issued by the central banks of various countries, and it is supported by national credit behind it. Bitcoin is an encrypted currency, and the value support mainly comes from the continuous investment of mining resources.
Bitcoin runs on a decentralized Bitcoin network. This decentralized network is jointly maintained by computer nodes distributed around the world. Transactions are also confirmed by nodes distributed around the world. The total amount and the speed of issuance All are strictly limited by algorithms. The Bitcoin network is decentralized, and the books are difficult to be modified or deleted.
Moreover, as an electronic cash, bitcoin transfer is also very convenient, especially in some cross-border transfers, its advantages have emerged, such as faster transfer speed (eliminating the cumbersome remittance process of the bank), procedures Lower fees (relative to traditional cross-border payments).
According to the rules of the Bitcoin white paper, how much Bitcoin is issued on a certain day and how many years a year will be restricted by the algorithm, that is, its circulation can be expected, so its inflation rate can also be expected, 2021 Bitcoin’s inflation rate and its inflation rate in 2025 can now be estimated. This predictable inflation rate makes it essentially different from the issuance of fiat currency.
For fiat currency, the circulation is theoretically unlimited. You can issue as much as you want, but Bitcoin is obviously not the case. The number of bitcoins to be issued on a certain day is determined by the algorithm and limited by the algorithm Okay, that is to say, how much it will be issued has been determined.
Moreover, in the Bitcoin issuance mechanism, the block reward halving occurs every four years, 1800 can be issued the day before May 12, and the third block reward halving on May 12 After that, the one-day circulation has been reduced from 1800 to 900. In another four years, the daily circulation will become 450 … It will be released until 2140.
Bitcoin’s mechanism of halving its issuance every four years has caused its inflation rate to continue to decline. According to statistics, the current inflation rate of Bitcoin has fallen below 2%, which is lower than the legal currency inflation of many countries around the world rate.
Fiat currency can theoretically be issued indefinitely, so there have been extremely high inflation rates in the history of many countries. In the world of Bitcoin, its inflation rate is predictable and continues to decline.
In short, due to the limitation of the algorithm, not only is the total amount of Bitcoin limited, but the daily issuance will be strictly restricted by the algorithm. This very different issuing and management mechanism from fiat currency has attracted more and more attention. There will be more and more supporters.
If you were to introduce Bitcoin to JK, how would you introduce it? Welcome to communicate in the message area.
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