What Supports Bitcoin (The Big Guys Supporting Bitcoin)

What supports Bitcoin? What is supporting it?

What is Bitcoin?

What is Bitcoin (Bitcoin)? Bitcoin is a type of cryptocurrency created by Satoshi Nakamoto and his two brothers. These two individuals are faithful supporters and early adopters of Bitcoin, later known as “big guys”. These individuals are very excited and proud of their support for Bitcoin.

In an article about Bitcoin published on December 13, 2017, the author said, “We believe Bitcoin is a revolutionary innovation and will become the foundation of the world economy.” He also added, “If people can understand the mathematical principles behind Bitcoin and make accurate predictions, Bitcoin will rise to new heights.” This is a good thing — Bitcoin is not just a single economic tool.

How is Bitcoin different from gold? Due to the similar advantages of Bitcoin and precious metals, they have also attracted the attention of traditional financial institutions. However, “gold can be a means of storing value and its price will rise over time. But this changes when other assets enter the market.” Despite existing for many years, Bitcoin has not been widely recognized, and many people even regard it as an alternative to deflation or a safe haven investment.

Additionally, some people refer to Bitcoin mining, claiming that Bitcoin is more environmentally friendly than oil drilling, and others claim that it has a higher scarcity. For example, Ethereum is one of them. It does not have any energy consumption restrictions and does not require extensive mining because the price of Ether is usually higher than the supply of Bitcoin itself. However, Ether also has its own mechanism design. For example, every block in the Bitcoin network contains the same amount of transaction fees. However, in recent months, due to the large number of newly issued Bitcoins on the Bitcoin network, these fees may rise to trillions of dollars, making Bitcoin an effective means of storing value.

What is the biggest selling point of Bitcoin? “I believe Bitcoin is very suitable as a payment medium, just like cash,” an anonymous source told Bloomberg. He said, “The most important use of Bitcoin is as a medium of exchange, and this will be the case in the long run.” How does Bitcoin work? The working model of Bitcoin includes:

1. Achieving data availability and security through blockchain technology;

2. Building a smart contract platform based on consensus algorithms;

3. Decentralized verification through the protocol layer;

4. Establishing trust-minimized trusted third-party nodes using zero-knowledge proofs;

5. Off-chain transactions.

Most of the current market transactions come from competition between exchanges, which makes it more difficult to scale Bitcoin. The Lightning Settlement System of Bitcoin allows each transfer to process multiple operations with only $10, while also providing a fast and low-cost way to transfer funds and reduce transaction costs.

The Big Guys Supporting Bitcoin

Editor’s Note: This article is from Bitmain News (ID: bitcoin8btc), written by JOSEPHYOUNG, translated by Overnight Porridge; the original article is from medium.com.

The US President, Donald Trump, expressed his support for Bitcoin in a tweet. He praised Bitcoin as a “complement to the dollar.” However, this information was deleted.

According to Cointelegraph, the Biden administration recently passed a law to regulate the cryptocurrency industry: “I think we should put everything in this framework.” This bill allows anyone to create a new system and make it easier to get approval. “This is a useful tool, but without these rules, you can’t use Bitcoin as a means of payment. That’s why I think it is a powerful feature,” he explained. “Because people don’t want to buy a value store with their own money. So please don’t invest your funds in it.” He also pointed out that Bitcoin is a secure, reliable, and user-friendly asset class. Additionally, he said in a media interview that he would not invest in digital tokens, but he is optimistic about the future prospects of blockchain technology and Bitcoin. “When you think about digital gold, is it your treasury?” he said. Although Bitcoin can provide a variety of options, most people still prefer other methods of trading. However, due to its limited supply, this situation is unlikely to change. Nevertheless, “Bitcoin” is not truly digital gold.

“There are many flaws in the current discussions about it… I think we need to address every mistake in this field, lest we miss or lose opportunities. And once we have the answers, we will have to let go,” he further explained his reasons for viewing Bitcoin this way.

He continued, “I don’t think anyone can prove that Bitcoin exists in reality.”

He summed up with the fact that Bitcoin is a very simple commodity. It is neither a medium of exchange nor a security, nor does it mean that it is just a code. Instead, it is a set of codes with many different characteristics. For example, each token is unique and a unique ledger unit.

At the same time, according to his predictions, the price of BTC will increase by 50%. He also stated that over time, “BTC will reach $100,000 in 2020.”