What is Bitcoin ?
I see a lot of people called Bitcoin is "virtual money" and completely disagree invoking it at all, because I think this call is very misleading and offensive to people who do not know anything about Bitcoin, because the word "virtual" it implies something not true, no value; and I know there is nothing further from the truth than that virtual nay.Tien a common currency used in the game, as a game company that controls, how to make it and the way it operates entirely without similar to Bitcoin. Besides, have you ever seen anyone with money to buy virtual Lamborghini ever? If Bitcoin virtual currency is not perhaps Lamborghini dealership that stupid after receiving Bitcoins you? Lamborghini is just one example among thousands of other examples, and that number is increasingly growing.
Do you know? Only 8% of assets worldwide money is in cash. The remaining 92% is just the numbers on the computer? Speaking of "virtual money" away.
"Value" is always a subjective concept (subjective): it may be of value to people, but not with others, much less different, depending on time and different locations. Do not forget that the value of anything was to be determined by the law of supply and demand.
For example, when we buy an item, we always see the item more valuable than the money we will spend in exchange, but the seller, by contrast, they see that money more valuable items selling goods, without this condition, they would never have bought if both selling and purchasing volunteers, both will feel good.
Bitcoin differs in that it was not created by any one country or any state, which is generated from a network connecting computers around the world, the term in English called 'Decentralized' (as from): in which 'centralize' (ph) is focused (on central), 'de' is a prefix meaning 'disassembly', 'separated' (such as: decay, decline, decode, debug, Decrease, deduct, depress), and 'ed' to turn it into adjectives; I roughly translated word 'Decentralized' into Vietnamese as 'distribution medium'.
Who created Bitcoin? Outline of the history of Bitcoin
Bitcoin was created by a person (or group) for failing to disclose the identity should have nicknamed Satoshi Nakamoto. Until now there have been many speculations on who is Satoshi but conjecture still just a guess, and we still do not know who Satoshi really because all the people were "suspects" have both refused be yourself.
November 2008, Satoshi launched an article, a blueprint, a proposal to introduce the world to Bitcoin, the English version can be read here (http://bitcoin.org/bitcoin.pdf), the translator had this article but I found Vietnamese translation seems a bit complicated (and there are some places not strictly standard service) than a normal reader. That is also why I've created this page, plus an additional reason it is because reading the article, another article by Vietnamese online I have found that the majority of the authors of the article write that perhaps a little like no deep understanding about Bitcoin, as well as economic, political and, perhaps as they had never spent more than a day to study it intimately before Posting, leading to a very narrow perspective.
Until May 21, 2010, the transaction (a transaction, sale, exchange) first fact in the history of the new Bitcoin happens when Laszlo Hanyecz, a programmer who lives in Florida, sent 10000 BTC (Bitcoin) for a volunteer to order him a pizza Dum. (Rate BTC / USD details can be viewed at bitcoinwisdom.com)
Bitcoin works like?
Bitcoin works based on advanced cryptographic algorithms (SHA-256 hash). Protocol (foundation, structure, architecture) of Bitcoin with open source (open source), this means that all those who know about the program can be checked through the source code, but can not change be it. Bitcoin protocol can only be changed or upgraded through the many. Before any change, then the developers upgrade (the developers (programmers)) must give notice on the main forum and if the support of the majority of the changes that will be promoted.
On the one hand, Bitcoin is a currency; on the other hand, there is a network Bitcoin distribution, secondary distribution, peer (peer to peer) transfer currency. Which means you can send Bitcoin DIRECT to another without via an intermediary, regardless of time, regardless of space, with an extremely low fee, almost equal to 0, or even by 0. Let's think about this a bit. This is indeed a revolution unprecedented happened in human history. Satoshi solved the problem, but so far it is still said to be unable to solve - it is the problem of trust - by giving initiative block chaining (I'll talk about the details later).
Because when there is an intermediary between, you have to believe them. How can you know for sure is that they will not mislead you? Never knowing, and not always your trust also in place. How can an overseas Vietnamese can send money back to their relatives in Vietnam on a weekend when the service is not open to deposit nearly 0 fee despite the amount you want to send a few hundred dollars to several tens of thousands of dollars or more? Even 150 million (cost: zero!) [Reference] I think maybe this is a move the greatest asset has ever happened on earth. In ancient times people move gold and silver jewels, then needless to say everyone knows that needs a lot of cost for such a transport: car rental, boats, horses, guards, guards ... not to mention the time of the cost to transport it while with Bitcoin, only takes about 60 minutes (on average a confirmation (the validation of a transaction) of Bitcoin takes about 10 minutes, the greater the amount should have more confirmations for certainly more than once had about 6 confirmations or more, can say with 100% certainty that the money sent was safe (uNABLE hack) and can not be reversed.)
Blocks and Block Chain
Block Chain is a chain link Blocks (Blocks), like a string beads linked to beads. Each block has a duty to retain the most recent transactions (that have not been logged in the previous blocks). Chain Block imagine a ledger book, ledger huge public record all transactions, in which each page in the book that is a block, this site is full, it will burn to the new page; This book has a number of characteristics that had limitless page. Once information about the transactions have been recorded, it will never be changed or deleted. In addition to the most recent transactions, each block also contains information linked to the block before it. And it also contains an answer to a very difficult problem. The answer is different for each block. If the answer is not correct, then it has no effect blocks and not be saved in the block chain.
Bitcoin was created like?
Assuming as we eg 1 Bitcoin with an ounce of gold (nearly a quantity (8.3 only), ounce is a measure of the severity of the golden West), then just about every 10 minutes there will be a number of Bitcoin ( yellow) "training" to be. This figure is now 25, having reduced by half every 4 years compared with the initial figure was 50. And until 2140, will have a total of 21 million Bitcoins all. In other words, after 21 million Bitcoins have dug up all in 2140, will no longer Bitcoins to dig anymore.
1 Bitcoin can be divided into one hundred million times. Smallest unit can not further subdivide called Satoshi, on behalf of people who created Bitcoin. So 1 Bitcoin = 100 million (one hundred million) Satoshis. Or 1 Satoshi = 0.000 000 01 Bitcoin.
A mistake many people's psychology Current 1 Bitcoin problems they find too should think that I can not afford to buy. Actually, if you can not buy one Bitcoin, you can still buy 0.5, 0.1, 12:01 Bitcoin ... But perhaps many will not overcome the psychological barriers that can not stand the feeling of ownership a small part of something, even though the numbers are for money, it's cold there is no difference: if one dollar is equal to 1000 0.1 Bitcoin Bitcoin with $ 100, no more no less.
Or if you find it getting too are also viewable through Litecoin, Bitcoin companions, prices are still very low compared to the potential. If Bitcoin Litecoin is gold, the silver, can generally be the same.
Why Bitcoin has value? The true value of what is Bitcoin?
Many people believe that the value of Bitcoin is calculated by the amount you can change out from it, or in other words, a Bitcoin price equivalent in Fiat Currencies (USD, Yen, Pounds, Euros, VN Dong ...) Really it is not the true value of Bitcoin, it is only one price, one consequence has been the law of supply and demand. Then of Bitcoin value REALLY is? Please reply, its true value lies in the network, the network where you want to join, you must have the coin Bitcoins. This imaginary coins like shares of a company start-up (only thing is there is not any company), as more and more people want to buy stocks that are of course the stock price to rise. Its value lies in the usefulness, convenience, safety and security of the payment and purchasing. Not a bank, state, company intervention, a genius idea has come true the first time in human history.
Anonymity - Bitcoin for your privacy
Bitcoin users do not need to register for an account, the bank does not need, do not need a credit card, no email, no need to have user-name or passwords, no matter what the name, address, gender, nationality , color, caste, class, level ... to pick up or Bitcoins. Number Bitcoins you get simply in one or more addresses you have. And it belongs to some Bitcoins who holds the private key (located in wallet.dat file), and only when there is the private key can then send Bitcoin is, because without the private key will not "sign name "(sign) was. When you send Bitcoins to a person, they just know that some of you sent Bitcoin, but can not tell who is who owns the number before your Bitcoins.
One can know the number of Bitcoins are in an address not know the names of AI owns the address. So for example you have 1 billion for Bitcoins, you will not gum off to a unique address, which must be divided into several different addresses. Because the larger the amount will increasingly tuned network, and the truth is.
Who? Bitcoin operating company?
No person or company operating Bitcoin. Bitcoin is operated by all Bitcoin users, who are using the Bitcoin client.
What is Bitcoin client?
Bitcon clients are software programs that run Bitcoin, or even have a common name is the Wallet. There are many different types of clients are used for many different purposes. Such as:
Bitcoin-Qt Client (Download at bitcoin.org/): The program was originally programmed by Satoshi Nakamoto, who gave birth to the Bitcoin. Suitable for enthusiasts, the miners, developers, programmers, business.
MultiBit Client (Download at multibit.org/): Fast average compact, matching the average user.
Electrum Client (Download at electrum.org/): Quick maximum portability. Can be suitable for all.
Bitcoin is "digging" (mine) look like?
Basically, the training is a process Bitcoins together emulation of "diggers" (miners) to find out the answer, the answer to solve a problem is difficult. The difficulty of this task is automatically edited so that on average about every 10 minutes there will be a miner (or a group of compositing) scattered throughout the world to solve a block.
This problem can understand my nom similar lottery tickets, buy as many of the higher chance of winning, the work of digging machines Bitcoins are trying to figure out which are the winning numbers by ... guess , generate the billions of "lottery" for a second, not just someone who is both the miner nETWORK together again to do this work, recalled that an average of about every 10 minutes there will be a or a group of people who find the winning numbers. Probably everyone knows, there are numbers is hard, but winning "probe number" because it takes time, effort, energy, verify that it is correct, it is very easy.
As technology and techniques increasingly advanced computer so the miner also growing fast and hard difficulty level will lead to more and more increasing. You know, power calculation (computing power) of the Bitcoin network is now 256 times more powerful than the Top 500 supercomputers in the world combined!
As mentioned in the previous article, when each of the blocks, people find a solution that would be "rewarded" some Bitcoin, like the one who had suddenly found a piece of gold buried under a tree after home. Bitcoin is not that out of thin air like paper money (fiat currency) of any government in the world. It takes energy and time to operate the computer training collar that Bitcoin. Like wasting resources need to dig gold from the ground up.
Many people will say that if you were that Bitcoin is such a terrible waste of energy. I will give two reviewers as follows:
1. "industry" dug Bitcoins is a competitive market is very tough and not joking around about which the current computer at home you can participate in it. It requires a large investment to create the "field" (farm) computers terrible. Apart from that terrible machine of the biggest expenses is electricity. So at any place, any country with cheap electricity, the operation there will be more beneficial. Such as Iceland is a country with electricity bills have to say is much cheaper compared to other countries in the world, because of supply and demand for renewable energy technologies in (clean energy, recyclable, use again), because electricity is difficult transport, waste transportation, storage difficult ...
Technical increasingly advanced training lead to Bitcoins machines will become increasingly more powerful and consume less energy. Plus they can take advantage of the heat, heat from the engine to be used in other applications. Meanwhile power is not completely wasted, it has created Bitcoins, have generated heat: 1000 Watts power produces 1000 Watts of heat. Law of conservation of energy states that energy is never lost, it only transferred from one form to another. The problem is that you have made good use of that conversion or not.
2. Dismissal of Bitcoins just because it cost electricity without considering the interests of its past is indeed flawed, superficial and childish. You must continue to pose such questions as: Is Bitcoin will do for the development of the economy or not when it opens the new deals, new payment methods ...? Does it accelerate the development of innovations in technology, in clean power technologies ... Saying Bitcoin electric charge is like saying that the creation of the windmill to generate electricity is bad for the environment because to produce steel should also consume energy.
Why only 21 million Bitcoins all?
Just as gold is limited, it has its limits Bitcoins. The very limited This creates a scarcity, created a value for Bitcoins, because often what you are rare. Because Bitcoins is limited so this creates a less noticeable effect, which is deflation (deflation) (rather than inflation (Inflation): an abuse issue currency). One of the arguments often put forward to refute Bitcoin is: If there is deflation, Bitcoins currency led to increasing prices, people will hoard every Bitcoin, leading to economic development is not delayed because no one was buying anything. However, this argument is incorrect. I could argue as follows:
Laptop increasingly faster, cheaper. If you follow this logic, then no one would ever buy a laptop anymore because with that amount each year, people will buy a machine faster, more genuine. But the reality is why, when the reality is that people NEED to buy, not because of the money it is increasingly valuable (because buy better machines) (prices) that they will not never buy.
Another example is the Lamborghini buying Bitcoins mentioned in the first post. Bitcoin price increases, people will increasingly want to spend the Bitcoin people get. Because why, because when you buy an item that's what you're taking profit at that time, if you saved that person who knows the Bitcoin in 1 day it fell, why? Bitcoin is the antidote to the disease like consumption, enjoyment, eating poorly (consumerism) (with the money you do not have) can see is spreading to the most deadly in the world today.
Sooner or later, you'll realize the truth about Bitcoin
Why do I care about so much Bitcoin? My aim when it comes to what is Bitcoin? Those who think that investing is to make money, to get rich, it is completely wrong. My real purpose when it comes to Bitcoin is because I want to invest for the long haul, for future years, not ten years from now investors snatch shooting style. Of course we also have people who come to Bitcoin only for this purpose, want to enrich quickly, leaving a few days ... two words success is less, more, more chaos; The more chaos the better to make bad decisions.
Investment is always a game of chance or less not just Bitcoin and especially in times of unrest this explosion of it, maybe a few more years then he began to stabilize. If you are intending to participate in this revolution, just remember one thing that investors do not spend some money that you can not lose, not willing to lose, lose does not matter, or just to be clear do not be foolish, but rather than sell the house to the purchase of all, it is probably everyone knows it but still no thua.Mot reiterate another thing to remember again that is not involved in Bitcoin if you do not really understand it, but just want to earn some porridge to see the reported price hikes caused it emerged greed.
Bitcoin is not invented to help you become a billionaire, if any, do not have to dream anymore dreaming. Time of the billionaire might have passed. Bitcoin was invented was to renovate the world, sounds great too, but the truth is that, you will realize this, sooner or later, sooner or happy for you, and then try to take away late, do not tell me no one has to tell you.
Bitcoin is not for the faint of heart; Bitcoin is not for those who lack understanding. The true value of Bitcoin does not lie in its price, but in the possibilities, the potential of it. Many ignorance keep looking at its costs and said that rancid bubble, oh virtual money, oh crap ... It is these people who will be left until last. We have been left this life before, and chances are there is a new millennium, sometimes literally.
Whether authorities will intervene in countries not Bitcoin?
The answer is most likely, because once Bitcoin increasingly been very well received, it is increasingly becoming true breeds more money, there will be a threat to state power holding in west. Because the person holding the power of money, the person holding the power of everything else:
"Give me control over a nation's currency, and I will not need to know who makes the laws of that country."
(A famous quote Mayer Amschel Bauer Rothschild)
Bitcoin is designed Satoshi completely remove this factor, no one can control it, including both main Satoshi always. Money is no longer in the control arms of the government anymore, but was able to return to the hands of each person, individually. But the thought of most people today think they are the role of the state is necessary, the presence of the state is to protect them and help them ... So the state should also fully able to create a kind of "pre-code" (cryptocurrency) almost like Bitcoin, except some points such as THEY will be the direct control and management, THEY will be the right to change the parameters of any whenever they want .... And because many people still believe in the state, believe in their government would be willing to accept the currency used by the government underwrite this. This is the problem; Bitcoin problems is not good for us or not (because this question has only one answer), but the main problem is our ideological understanding Bitcoin to accept it or not, can understand what is happening in this world or not, there is something fundamentally understand the economic, political or not ... that is the core mission of education workers at the Ludwig von Mises Institute.
To learn about Bitcoin, it takes time more than a day or an article. Lake map who only heard about it briefly, but was quickly judge (based on prejudices, their knowledge). Perhaps this post is quite long, so I will save what not to say in the next post. To summarize I just want to say: Bitcoin is the future of humanity. That has yet to depart and it just started to launch the first engine only.
