Let you understand the whole picture of Bitcoin in three minutes

In 2008, Bitcoin was invented by a mysterious person who wrote a program. Thus, Bitcoin was born. Of course, this program is not unusual at present. It can be completely copied.

The story slowly begins.

When it was first invented, the programmers who first came into contact with Bitcoin were just sitting around doing nothing. A few of them were bored and were mining Bitcoin. For example, two of the programmers, let's call them Bitcoin A and Bitcoin B.

They dug thousands of them and set up an online trading platform to sell them, but no one wanted to buy them.

Person A said it was very boring. . . . . . . .

B said it was so boring. . . . . . . . .

Those of you who read the story may say: How boring. Who would buy a few virtual numbers?

In order to make everyone less bored, A said to B: How about we play a game? B agreed.

So, the story begins...

A and B went downstairs and found a milk tea shop. They said that you can accept Bitcoin as payment in the future. I will recycle the Bitcoin and pay you a small handling fee.

The owner of the milk tea shop is either A or B's father. He was annoyed and had no choice but to agree.

Next, A and B start playing the game.

A spends one yuan to buy one bitcoin from B, and B also spends one yuan to buy one bitcoin from A, and the payment is made in cash.

A spends another two yuan to buy one bitcoin from B, and B also spends two yuan to buy one bitcoin from A, and the payment is made in cash.

A spends another three yuan to buy one bitcoin from B, and B also spends three yuan to buy one bitcoin from A, and the payment is made in cash.

. . . . . .

So, in the eyes of the entire market (including you who are reading this story), the price of Bitcoin soared, and soon it rose to 60 yuan per Bitcoin. But as long as A and B have the same number of Bitcoins, then no one makes money, and no one loses money, but the Bitcoin they revalued "increased"! The Bitcoins A and B now have seem to be "more valuable" than before. The two of them laughed and played themselves into "Monopoly".

A smiled and said: It's fun.

B smiled and said: It’s fun.

You who are reading this story are smiling contemptuously and saying: It's really fun for you two to entertain yourselves. Only "idiots" will be fooled.

At this time, there is Passerby C. He knew that Bitcoin was one yuan when he passed by the trading platform a week ago, but now he finds out that it is 100 yuan per bitcoin. He is very surprised.

A month later, Passerby C was even more surprised when he found that the price of Bitcoin had risen to 200 yuan per piece.

A week later, Passerby C found that Bitcoin was already 500 yuan per piece. He bought one without hesitation because he was an investor and speculator. He was sure that the price of Bitcoin would continue to rise and there was still room for price increase because it was said that a milk tea shop began to accept Bitcoin payments. He also went to the milk tea shop to verify it and it was true. Some people in the market predicted that the "target price" would be more than 10,000 US dollars.

Under the demonstration effect of Bitcoin A and Bitcoin B "making money", and even under the demonstration effect of Passerby C making money, more and more passersby will buy Bitcoin, and more and more people will participate in the buying and selling. You who are reading this story will also go crazy, shouting "You are all idiots, this is a scam, I will never buy it."

But the reality is that the price of Bitcoin is rising steadily, and the "idiots" in front are making a lot of money, and finally you who are reading the story can't sit still and finally secretly join the ranks of the "idiots" you call. At present, the price of Bitcoin has exceeded the price of gold, and everyone is very happy, because it is strange: no one has lost money...

At this point, you who are reading this story know exactly what is going on. You also understand that once the price rises to the end, whoever has less Bitcoins, A, B, or everyone else, will make real money. Whoever has no Bitcoins left will make real money!

So, when the price goes up, you who are watching the story sell in large quantities, but you soon regret it - because the price of Bitcoin is still rising rapidly... Those who buy later still make money.

So who lost money?

The answer is: No one loses money, because many people who buy Bitcoin at a high price hold a high-quality equivalent asset recognized by everyone - Bitcoin! It is said that this is a "democratic" currency, and there is no government banking supervision. "Democracy" is so great. It's a good thing. Although you also know that this "democracy" started from a scam. But Bitcoin is obviously better than cash! How much interest can you get if you deposit cash in the bank? How can it compare to the soaring price of Bitcoin? Even everyone agrees that due to the algorithm of Bitcoin, Bitcoin is not in unlimited supply. It will be mined out by 2115, and there will be less and less Bitcoin in the future. Due to the scarcity of Bitcoin, the market is in short supply. But in fact, you know better than anyone that the so-called scarcity of Bitcoin is deceiving yourself. Even if there is only one Bitcoin, it can be infinitely 0.00000001. But you must fool yourself into believing in scarcity, otherwise how can you hold it firmly.

Someone asked: If it is a scam, will you never lose money if you buy Bitcoin? It seems so. But this world is so strange. Suddenly, a cool person named Dong Changqing came to the market. Dong Changqing said: There will be times when you lose money! So when will everyone lose money?

Assumption 1: A price department comes to the market and thinks that the price of Bitcoin should be one yuan per unit. Or Bitcoin and milk tea shops are not allowed to trade. (Regulation or control)

Assumption 2: Bitcoin’s algorithm has been cracked, and it can be mined infinitely. And the price is one yuan per coin. (Massive issuance)

Assumption 3: The Bitcoin algorithm is copied. There are many commodities available in the market for playing this game, such as Litecoin, Huobi, Shabi, etc. (same theme)

Hypothesis 4: Everyone suddenly realizes that this is just a virtual number! It will disappear at any time. (Value Discovery)

Hypothesis 5: The milk tea shop suddenly revealed the truth, so no one is willing to play the game of buying and selling each other anymore! (The truth is revealed)

If one day, any of the assumptions come true, then on that day, people who have Bitcoin will lose money! Then who will make money? Those who have the least assets - Bitcoin!

The story of Bitcoin is very simple. Everyone thinks that people who buy Bitcoin at high prices are fools, but the final high price has never appeared. But this story keeps repeating. There are always some fools who think that they will not be the last one. So they keep rushing in. Until any hypothesis appears.

But as long as none of the five assumptions come true, Bitcoin can continue to play. A strange phenomenon may even occur: those of you who initially despised Person A and Person B and bought Bitcoin at this moment, no matter when you bought it, will form a community of interests with all the previous Bitcoin holders, and will change from despising Bitcoin to praising it insincerely, because everyone knows that only by continuing to fool people and attracting the next person to take over can you make a profit.

Remember: in the investment and speculation market, you can chase any underlying asset, regardless of the price, but you must be able to see whether the subsequent menu will be served when everyone is eating the most happily. This way you can slip away in advance with an excuse to go to the bathroom. Let the fools who are only concerned with eating stay and pay for you. Otherwise, you may be the one to pay.

Of course, it is impossible to pay if you don’t participate .