What exactly is Bitcoin? To put it simply👇
Bitcoin is a type of cryptocurrency that doesn't rely on banks or bosses,
backed by a decentralized payment system maintained by global users.
No company controls it, and no one can tamper with it,
it's like a public ledger that everyone participates in, secured by blockchain technology to ensure transparency and safety.
For example, understand it in 3 seconds:
You and a group of people form a bookkeeping team,
who pays whom, everyone writes it down in the ledger simultaneously.
No one can unilaterally alter the records; if someone tries to cheat, the others' ledgers will reveal the truth.
This is the logic behind Bitcoin — universal bookkeeping, tamper-proof.
Why is Bitcoin valuable? The core reasons are three:
Encryption Security:
Those who own Bitcoin must have a "private key," like a safe password.
Without a private key, no one can touch your assets.
Natural Anti-Counterfeiting:
Each Bitcoin has a unique "digital fingerprint," allowing for traceability and making it non-reproducible.
Scarcity Attribute:
The total supply is fixed at 21 million coins and will never increase. The more mined, the less there is, referred to as "digital gold."
Why do people keep talking about Bitcoin?
Decentralization: No one can control it, not relying on a government to print money.
Transaction Transparency: The ledger is publicly accessible across the network, but user identities remain anonymous.
Price Volatility: Prices can skyrocket or plummet, leading to the dual controversy of "getting rich quick" + "bubbles."
A final reminder: Don't treat investment as gambling.
Bitcoin is neither a windfall from the sky nor a pure scam.
But its volatility is too high, and it's not something you can play with your living expenses or retirement funds.
Want to know more? First understand it, try it with spare money,
don't jump in fantasizing about "turning things around in one go."
Do you think Bitcoin resembles "digital gold" more,
or is it more like a game of "pass the parcel"?