Bitcoin’s transformation has to do with digital signatures, which you can think of as a fingerprint that a person leaves behind on every transaction.

1. The Bitcoin market is manipulated by market makers, and there must be large funds manipulating it. The mainstream currency market is determined by futures. If you want to speculate in currency, you should integrate the market maker thinking into the model as soon as possible, so that you can lose less money.

2. The trade war has a huge impact on the fundamentals of capital. The linkage between U.S. stocks, A shares and other equity assets, including commodities, and Bitcoin has become stronger. The relationship between digital currencies and major equity assets is like that between blue chip stocks and monster stocks.

3. Bitcoin will reach new highs within two years, which is beyond the reach of all other assets. My husband and I do not own any property or car, and all our money is in Bitcoin.

Now, cryptocurrency uses something called the Elliptic Curve Digital Signature Algorithm, which is created by the private keys that control Bitcoin wallets and ensures that Bitcoins can only be spent by their rightful owners.

Alejandro De La Torre, vice president of Poolin, a large mining pool based in Hong Kong, said Taproot will instead use something called Schnorr signatures, which essentially make multi-signature transactions unreadable.

In practice, this means greater privacy, as your keys won’t be exposed as much on-chain.

“You can hide your identity better, which is good,” said Brandon Arvanaghi, who previously worked as a security engineer at cryptocurrency exchange Gemini.

This won’t translate into greater anonymity for your personal Bitcoin address on the public blockchain, but it will make simple transactions indistinguishable from those that are more complex and consist of multiple signatures.

These enhanced signatures are also a game changer for smart contracts, which are self-executing agreements on a blockchain. Smart contracts can theoretically be used for any type of transaction, from making a monthly rent payment to registering a vehicle.

Taproot makes smart contracts cheaper and smaller in terms of the space they take up on the blockchain. Killeen said this increased functionality and efficiency presents “astounding potential.”

Currently, smart contracts can be created both on Bitcoin’s core protocol layer and on the Lightning Network, a payment platform built on Bitcoin that enables instant transactions.

Smart contracts executed on the Lightning Network usually result in faster and lower transaction costs. Bitcoin may face another split, and the most important thing for currency holders to pay attention to is how to protect their property.

Replay attack after blockchain split The second part of Segwit2x will be deployed in November. Developers have not yet reached a consensus on this upgrade, and miners seem to have reached a consensus on the upgrade, but in fact there are still major differences.

Therefore, this upgrade may also cause potential division. The Segwit2x protocol upgrade is currently mainly deployed on the bitcoin node software version of btc1, while the bitcoin website currently mainly runs the bitcoin core version of the node.

But the Core version of the node refused to deploy the Segwit2x protocol. This is the biggest reason for the potential split, with two incompatible protocols running on one network.

If miners cannot agree on a version when the upgrade is due in November, or developers refuse to release compatible versions, then a split will occur. For users, the most important thing to note when Bitcoin and other blockchains split is that you will get two coins.

As long as you hold the coin before the split point, you will have two coins after the split. How to protect yourself from these two coins?

The most important thing is that you need to know that you have two coins, and then you need to be careful not to be inexplicably sent one of your coins to someone else by an operation called a "replay attack".

First of all, let me make it clear that replay attacks are not attacks at all. The various comments about replay attacks currently circulating in the cryptocurrency circle are a bit too alarmist.

Replay attack, the "attack" here is not some kind of aggression or theft launched by others against you. It is because the two branches of the Bitcoin blockchain split have the same address, private key and transaction format.

Your coins before the split point will be automatically recognized by both chains after the split. If you use coins before the split point to initiate a transaction, the transaction will be valid on both chains. This means that you have sent two transactions, and the other transaction here is "replay".

Then you can perform the operation of separating coins. You first operate a wallet, for example, if you previously stored coins in bitcoin core, after syncing to the latest block, you will find that you have received 0.011 (or 0.012, you can only receive one), and generate a new address first.

Then transfer all the coins to this new address, where all the coins include the newly purchased 0.011 (or 0.012) Dot Coin. This UTXO transaction including the split coins cannot be replayed, so your other split coin is still in this wallet file.

Then you copy the wallet.dat file to the btc1 wallet and synchronize it to the latest block. You will find that you have received 0.012 (or 0.011). Then create a new address and send all coins to this new address. The operation method of the light wallet is the same, but the private key process cannot use the method of copying the wallet.dat file, but use the "Import Private Key" function.

But when the new split chain comes out, whether the light wallet can come out in time is unknown. In this way, you have completed the separation of your coins, and you have two coins. It will not be attacked by replay.

It is precisely because confidence is not as reliable as credit that the price fluctuations of Bitcoin are as scary as a roller coaster. However, as long as Bitcoin cannot guarantee price stability, it cannot truly carry the daily payment function of the general equivalent that currency should carry.

No one wants to get enough money from selling a house in the morning to buy a toilet in the evening; even though they may be able to buy a villa the next day, it will give them a heart attack.

Some people say that Bitcoin can take on the function of the IMF's special drawing rights. But again, due to the sharp fluctuations in Bitcoin prices, I still doubt this idea.

As for speculation? I have to say that Bitcoin is still an excellent speculative product. If you are really rich, you can take out 1% of it to play with it. After all, bubble is probably the only feasible interpretation.

As mentioned above, favorable factors do exist, but they are not enough to support such a large increase. Bubbles and speculative psychology may be the main reasons for the surge in the short term.

When it comes to Bitcoin investment, fanatical supporters have a famous saying, "The future goal of Bitcoin is one million yuan or the value of a villa. You can buy it at any time as long as you can hold on to it."

However, Buffett seems to disagree with this concept, because he has repeatedly emphasized that "buy good companies at the right price and hold them for a long time." The difference lies in the right price.

I do not deny that Bitcoin has a solid value foundation. If nothing unexpected happens, it will have a good future. However, it is important to choose the right price and timing. Don’t overestimate yourself. In the ups and downs, most people may not be able to hold on.

Finally, walking alone is lonely. The bull market is coming. Qiqi’s small circle with no threshold welcomes everyone to join. Let’s move forward hand in hand and meet the uncertainty of the future with a certain group#etf #OKB $BTC $ETH