Must-See for Beginners! Five Minutes to Understand Bitcoin and Blockchain

1. What is Bitcoin?

Bitcoin is the world's first decentralized digital currency, created in 2009 by a person or group known as 'Satoshi Nakamoto'.

Core Characteristics: Scarcity: The total supply is fixed at 21 million. Peer-to-peer transactions: No intermediaries like banks are needed; transfers occur directly between individuals. Immutability: Transaction records cannot be changed once written to the blockchain. Use Cases: As a store of value, it is referred to as 'digital gold'. It can be used for online shopping, international remittances, and more.

2. What is Blockchain?

Blockchain is the technology that supports Bitcoin, functioning as a distributed database that records all transaction information.

Simple Understanding:

Imagine a globally shared ledger, where everyone can see transaction records but cannot change them at will. Core Characteristics: Decentralization: Maintained by countless computers around the world, rather than a single company or government. Transparency: All transactions are public, and anyone can look them up. Security: Data is protected through cryptography to prevent hacking and tampering.

3. The Relationship Between Bitcoin and Blockchain

Bitcoin is the first application of blockchain technology, just as email was the first large-scale application of the internet.

Blockchain = The Ledger of Bitcoin, but blockchain can also record other data, such as smart contracts, supply chain information, and more.

4. Advantages and Limitations of Bitcoin

Advantages:

Not controlled by governments or banks. Global circulation, low transaction fees, and fast speeds. Inflation-resistant, with limited supply.

Limitations:

High price volatility, easily influenced by market sentiment. Transaction speeds are slower than some emerging technologies. Regulatory attitudes in some countries are still unclear.

5. Why are More People Paying Attention to Bitcoin and Blockchain?

Wealth Effect: Early investors in Bitcoin have made significant returns. Financial Freedom: It allows individuals to control their wealth without relying on banks. Technological Potential: Blockchain is believed to have the potential to revolutionize finance, logistics, healthcare, and various other fields.

6. Beginner Entry Advice

Learn More: Understand the basic concepts and keep an eye on the developments in Bitcoin and blockchain. Small Experiments: Purchase a small amount of Bitcoin through an exchange to experience the process.