What exactly is Bitcoin? An article to explain to you

Nakamoto 2025-11-24 12:01 21348人围观 BTC

Click on the blue words to follow us﹝Lanyu Star Chain﹞Heart to Lanyu Liantong What exactly is Bitcoin in Fujian in the future? An article explains it to you Preface You may have heard its name in a lot of news, along with words such as "skyrocketing", "pl

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What exactly is Bitcoin? An article will explain it to you

Preface

You may have heard its name in a lot of news, along with words like "skyrocketing," "plummeting," and "the myth of wealth creation." But aside from these auras and bubbles, the core of Bitcoin is actually not complicated.

It is not a tangible coin

First of all, we have to establish a concept: the banknotes in your wallet, or the numbers in your bank card, are issued by the country's central bank, which is called legal tender. As for Bitcoin, it does not have a central issuing institution such as the "World Bitcoin Bank" to issue it. It is essentially a decentralized digital accounting system running on the Internet. You can think of it as a super public "big ledger" shared by the whole world.

This ledger records every transaction since the birth of Bitcoin. For example, "Xiao Ming's address transferred 1 Bitcoin to Xiao Hong", "Xiao Hong's address transferred 0.5 Bitcoin to Xiao Zhang"... All these records are clearly written in this ledger and are open to everyone in the world.

Who will keep this ledger? And who is maintaining it?

This is the most subtle thing about Bitcoin. It is not like a bank's ledger, which is recorded and maintained by the bank's own server. Bitcoin's ledger is maintained by thousands of computers (we call them "nodes") around the world. Everyone can choose to join this network and become a member of the ledger maintenance. When a new transaction is generated, computers in the network compete for "accounting rights" through a complex mathematical algorithm. You can think of this process as a "mathematical competition" in which all computers are participating. Whoever solves this super complex mathematical problem first will have the right to package the transaction records generated during this period into a "block", and then connect this block to the previous long chain - this is the "blockchain" we often hear.

As a reward, the computer (or the operator behind it) that successfully kept the account will receive a certain amount of new Bitcoins. This whole process is what we commonly call “mining”. Therefore, the essence of "mining" is actually to use computing power to maintain the security and stability of the network, and thus obtain newly generated Bitcoins from the system as reward.

Why was Bitcoin created?

This brings us to the financial crisis that swept the world in 2008. At that time, a mysterious figure (or a group of people) under the pseudonym "Satoshi Nakamoto" published a paper proposing the idea of Bitcoin. Its core idea is to create a peer-to-peer electronic cash system that is not controlled by any single country, bank or institution.

I personally understand that its birth brings a reflection and challenge to the traditional financial system. It wants to try to see whether humans can not rely on the credit endorsement of a "center" (for example, the government promises that this piece of paper is worth 100 yuan), but rely on cryptography technology and distributed networks to create a new, global value carrier.

Where does the value of Bitcoin come from?

This is the question that confuses the most people. The reason why a piece of paper is money is because the national credit is behind it. There is nothing behind Bitcoin, so why is it valuable?

I personally believe that its value stems from the following consensus and characteristics:

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Decentralization and censorship resistance: No central organization can freeze your Bitcoin, and no one can issue it at will. As long as you have your private key, your assets are completely under your control. This feature has unique value in certain scenarios.

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Global circulation and divisibility: You can transfer Bitcoin to another person within minutes anywhere in the world with an Internet connection, transcending national borders and the limitations of traditional banking systems. Moreover, 1 Bitcoin can be divided to 8 decimal places, so you can send extremely small amounts.

Or decadence, or passion. In the past year's work, under the leadership of the company's leaders.

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The total amount is constant: This is the most critical point. Satoshi Nakamoto stipulated during the design that the total number of Bitcoins will always be only 21 million. This absolute scarcity is like gold. It is easy to understand the logic that rare things are valuable.

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Therefore, the value of Bitcoin is based on the consensus that more and more people recognize its rules and its use as a means of “digital gold” or “value storage”. The level of the price is the result of the buying and selling game between market participants based on this consensus.

Solemn reminder

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Price fluctuations are extremely violent: your assets may double in one day, or they may be halved in one day. This roller coaster-like experience is not something everyone can bear.

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It's still in its early stages: Bitcoin and the entire cryptocurrency market are still very young, and there are huge uncertainties about regulatory policies and technical risks.

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After talking so much about its principles and advantages, I must and must solemnly remind you:

The market is risky and investment needs to be cautious. In the world of Bitcoin, this sentence is the truth summed up in blood and tears.

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Security issues are crucial: remember, “Not your keys, not your coins.” Where to put your assets and how to keep your private keys is the first and most important lesson you need to learn when entering this world.

write at the end

So, what exactly is Bitcoin? I personally think it is a great social experiment and a subversive attempt on currency, trust and value. It is not only the crystallization of technological innovation, but also a brand-new thinking mode.

For us ordinary people, it can be a technological phenomenon worthy of understanding and attention, but it should never be a casino that allows you to blindly follow the trend and dream of "getting rich overnight." If you look at it with a learning and science popularization mentality, you will gain more.

I hope this simple introduction can help you clear up some fog and establish a preliminary and clear understanding of Bitcoin.

(The market is risky. The content of this article is only for popularization of knowledge and does not constitute any investment advice. )

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