An experienced miner who has been mining for five years still doesn’t understand what Bitcoin is? This article explains it clearly!

In August this year, according to coinmarketcap data, the market value of Bitcoin exceeded 300 billion US dollars, accounting for nearly 70% of the total cryptocurrency market value, while in March this figure remained at 50%. As the market value of Bitcoin continues to rise, some people believe that this may indicate that another bull market is coming, and may even push Bitcoin's dominance to more than 90%, and it will become increasingly difficult for other alternative crypto assets (such as altcoins) to gain more market share.

Yes, Bitcoin's dominance has never been shaken.

Bitcoin is irreplaceable

Many people still don't understand why Bitcoin is valuable?

As the first application of blockchain, Bitcoin solves the defects of the sovereign currency system that has accumulated over the years in the world economy. Currency is the blood circulation system of the entire economy. A currency that transcends national boundaries and resists inflation has a wide and huge demand. The system design of Bitcoin intentionally limits complex codes, thereby limiting the complexity of technology and greatly reducing system risks. Although Bitcoin has encountered many crises in its development, the security of its basic technical framework has withstood the test.

Bitcoin exists independently of the national asset system. It is completely decentralized, and no government or organization can control it. The total amount is 21 million, and there is no excessive issuance beyond actual needs. It circulates point-to-point around the world, and transactions are decentralized, with minimal costs and time. In addition, its anonymity and traceability make Bitcoin a very promising currency.

Currently, 99 countries (40% of the world) have a positive attitude towards Bitcoin (legal or neutral); 7 countries (3% of the world) have a restrictive attitude towards Bitcoin, including China; 10 countries (4% of the world) have an illegal attitude towards Bitcoin; 130 countries (53% of the world) have not expressed their views on Bitcoin.

In addition, Bitcoin is the world's largest savings cryptocurrency and transfer payment currency.

Bitcoin is a remarkable innovation. Its biggest feature is that it has achieved financial decentralization through the Internet and established a decentralized system through blockchain technology. This system exists on the Internet, which ensures that Bitcoin can exist independently beyond national borders or a large company, and no one can create inflation in the world of Bitcoin.

Bitcoin can be said to be a cryptocurrency that never inflates.

Why can't Bitcoin be tampered with by attacks?

In the past few years, the computing power of the Bitcoin network has quietly grown to an incomparable level, which greatly increases the possibility of Bitcoin's success. Conversely, it can also explain why altcoins are unreliable because they are too easy to be attacked.

At present, many currencies have been attacked, including Bitcoin's multiple forks Bit Gold, Verge and MonaCoin, but the father of cryptocurrency - Bitcoin has always been as stable as a rock and never worried about such risks falling on itself.

Because it is harder than climbing to the sky to crack Bitcoin. Why? The cost is too high!

If you want to attack and crack Bitcoin, you must deploy professional AISC mining machines worth 53.69 billion RMB. But in fact, due to the production of dedicated chips, the production capacity of dedicated mining machines is very small. Judging from the monthly market sales, it will take several years to buy enough machines.

On the other hand, from a market perspective, it is impossible for a company or group to buy enough professional mining machines. If a non-professional mining machine is used to crack Bitcoin, it will need to call on 12.29 million personal CPUs on Earth to launch an attack, which is obviously impossible!

Bitcoin's Credit Source

The underlying structure of Bitcoin is based on a peer-to-peer network without a central server. Each participant on the network installs the same node software, which already contains established operating rules. Any unilateral modification by any party is invalid. Transactions occurring in the network are broadcast to the entire network without a fixed object. Each participating node packages the transactions received within a certain period of time into a block (BlockChain) and calculates the puzzle of the block. The first node to successfully calculate gets the right to record accounts and can initiate a transaction on the blockchain to give itself a certain number of bitcoins as a reward. Calculating puzzles is mining, and the reward is the issuance of bitcoins.

Mining, why do we need a large number of mining machines to mine? Simply put: using a large amount of computing power to generate virtual currency. For current paper money, the government can decide when to print money and how to distribute it, but Bitcoin is completely decentralized, it does not have any central government.

One Bitcoin is a string of passwords. The Bitcoin network currently generates 12.5 Bitcoins every 10 minutes, which means that a new string of passwords is generated every ten minutes. All people in the world who want to mine Bitcoins need to calculate this string of passwords. Whoever calculates correctly first can take all the Bitcoins generated in these ten minutes. This process is called "mining."

Of course, this calculation process is not completed by the human brain. The entire process is implemented by computers. These professional computers (mining machines) act as "miners" to "mine" for you.

Currently, more than 95% of the mining machines in the world support Bitcoin mining. Therefore, if you want to tamper with Bitcoin, it means turning on all the mining machines at the same time and tampering with all the data of Bitcoin in the past 10 years within 10 minutes. Otherwise, it cannot be attacked.

Mining machines are the cornerstone of Bitcoin and blockchain

In 2009, when Satoshi Nakamoto launched the Bitcoin network, any computer connected to the network could effectively mine Bitcoin. Bitcoin is mined using special software to solve mathematical problems. In the early days, Bitcoin miners solved these problems with ordinary desktop and laptop computers, but as Bitcoin computing power became higher and higher, personal computers were no longer able to mine Bitcoin, and personal computers withdrew from the Bitcoin mining stage as early as 2013. Therefore, Bitcoin mining soon introduced new mining hardware - mining machines.

Mining machines were born with the birth of blockchain. Blockchain is a distributed ledger technology that requires hardware equipment for accounting and information transmission. Mining machines carry such functions. Usually, a blockchain project will use tokens to incentivize users to provide hardware equipment and record their contributions. The development of blockchain projects such as Bitcoin, Ethereum, OneCloud, and EOS is inseparable from the development of mining machines.

Mining machines are the cornerstone of blockchain and Bitcoin mining. Currently, mainstream mining machine manufacturers and operating service platforms such as Bitmain's Antminer have different advantages. As more and more people participate in mining, choosing the right mining machine is the first step in mining.