[스낵인포] Bitcoin, should you buy it now? What is Bitcoin …

The price of Bitcoin is breaking the highs every day. As the price of Bitcoin increases, so does the interest in cryptocurrencies. Bitcoin, Ethereum … These days it’s just a matter of turning your head, so I’ve heard a lot of people around me, but when you want to invest in a virtual currency, what is this? It is safe? From now on, I will explain which virtual currency Bitcoin is using as an example.

Bitcoin is the first word that comes to mind when it comes to virtual currency. Perhaps Bitcoin is more familiar than the word virtual currency. Although it has now become a flagship cryptocurrency, it has only been 10 years since Bitcoin first appeared. November 1, 2008. A person with the pseudonym Satoshi Nakamoto, which is still unknown, publishes a nine-page article entitled ‘Bitcoin, P2P Electronic Money System’ on the Internet. In this work, Satoshi Nakamoto proposed a very innovative monetary system and the technology that makes it possible. He explained that the currency cannot be tampered with or forged, it does not require any personal information, and yet it has full transparency in transactions. What does this mean?

First, let’s look at the current financial system. Currently, all financial transactions that we exchange money between individuals, save in banks or take loans are stored on the bank’s servers. Since all the information is on the bank’s server and not elsewhere, this server should never be hacked. Banks are expensive to improve security and backup. However, Satoshi Nakamoto’s thesis proposed blockchain technology. The blocks that contain information about monetary transactions are shared by all, and it is impossible to remove or manipulate only one of them if they are chained. So the theory is that by using this blockchain technology, you can conduct secure and transparent transactions without controlling the details centrally. Technology in which everyone has information without centralized control. This is the essence of Bitcoin. In fact, this also touches the background of Bitcoin.

The aforementioned ‘Bitcoin, P2P Electronic Money System’ This document was published shortly after the bankruptcy of Lehman Brothers, an American investment bank that caused the global financial crisis. When the financial crisis hit at the time, the United States government lowered interest rates and launched quantitative easing to free up money in the market. Naturally, there was inflation in the market where the value of money fell. I can’t believe the currency that the government or the central bank can go up and down in value. Bitcoin was born this way when we created an ideal currency that allows secure transactions between individuals without the intervention of the government or the central bank.

Bitcoin doesn’t keep coming out indefinitely, it’s slated to issue just 2 million. And it is known that more than 16 million have already been released, 80% so far. There are many opinions on when Bitcoin mining will end, but it is a bit difficult, but I will explain it in detail. Bitcoin is designed to have a reward half-life each time the 210,000 block is formed. From 2020 until the half-life, 6.25 bitcoins are rewarded per block. Since 1 block is formed every 10 minutes on average, it takes about 4 years to form 210,000 blocks, so the half-life is estimated to be around 4 years.

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Therefore, by calculation, the reward will be reduced to 3.125 Bitcoins starting in 2024. (It’s getting difficult already ;;;) If this is calculated, the reward will be 1.5625 Bitcoins starting around 2028. However, in theory, the bitcoin reward only converges to zero and cannot be zero forever. That is why there are conflicting opinions about the timing of the completion of mining. One bitcoin per block is not offset, and some experts believe that 2032, when 99% of bitcoins are mined, is actually the time of completion of mining, and the view that 2040 is completed when calculating profitability, is the 2 millionth in the calculation. Some experts see 2140 as the end point when Bitcoin comes out. There are also opinions that the completion time will not arrive due to the mining difficulty setting. Anyway, there are still bitcoins that have not been issued, so how will the bitcoins that have not yet come out come out? Even if you can only get one, you can earn more than 50 million won (as of February 18, 2020), which makes it even more curious.

You’ve probably heard of bitcoin mining at least once. If you verify and encrypt the details of the bitcoin transaction in the world, you can get bitcoins in return, which is called bitcoin mining. Since it is not eligible for mining, anyone can mine with a dedicated computer called a miner, but it is not easy to mine one even if you run the program for a whole month, which is why now most corporate-type organizations run hundreds of computers at the same time. It is currently asking for tens of millions of won, but Bitcoin was not attracting attention from the beginning. Of course, the value was not that high from the beginning. Let’s see how much the value of bitcoin has increased through real business examples.

The first real Bitcoin transaction was the pizza order transaction on May 22, 2010. I paid 10,000 bitcoins for the second edition of Papa Jones Pizza, and if you calculate the current price of bitcoin, you paid 500 billion won for the second. edition of the $ 20 pizza. It became a really expensive pizza. It was a phenomenon that occurred as the value of bitcoin soared in just a few years. JP Morgan analyzed that it would be difficult to maintain the current market price if it failed to reduce the volatility of bitcoin. I expressed the opinion that it was. Anyway, when you look at the price of bitcoin that goes up when you wake up and sleep, it is true that you are worried about investing even now. However, in an article like Bloomberg, “When an American market research firm, Gartner, recently conducted a survey of corporate finance executives, eight out of 10 responded that they were unwilling to invest in bitcoin as a company asset.” . (February 17, 2021 There is a date). You know that you should always be careful when investing, right?