We often read the news of some coins being burned. So, what’s coin burning? How is the coin burned? Why should the coin be burned?
Now, we’d like to answer the three questions.
The news about 51% attack on bitcoin with US$760,000 was widely spread on the network, and some well-known currencies such as ETH, BCH and BSV had all become the targets. It seems that the cost of launching a 51% attack is far less than our imagination. Many “smart guys” quickly came up with the idea of launching a 51% attack on bitcoin to get profits in the futures market. Unfortunately, they are just daydreaming.
As the pioneer of bitcoin, POW (Proof of Work) is widely regarded as a solution integrating security, decentralization and fairness in the consensus mechanism. The stable operation of bitcoin network for nearly decade is the best example.
The only way against POW mechanism is the 51% attack —- when certain attacker controls more than 51% of all the hashrate, he can generate the longest chain singlehanded —- the attacker can make hard fork with double-spending attack anytime. It is easy to see that such an attack demands big price from the attacker, so it only theoretically exists on paper until May 2018.
Even in the bear market of 2018, the bitcoin prices have fallen by about 85% from the peak, however, the bitcoin is still worth about US $3,000 in the market. Therefore, all the investors must be very concerned about the security of bitcoin.
So, is bitcoin safe? In other words, can hackers easily steal the bitcoin away from the wallet?
As a well-known saying goes: If you want the world to know you’re ignorant about bitcoin, the best way is to use the “tulip bubble” as a metaphor, and the second is to claim bitcoin as a “Ponzi scheme.”
Today, we’d like to talk about why bitcoin is not a “Ponzi scheme”.
The market value of bitcoin has been over US$200 billion, accounting for nearly 70% of the cryptocurrency market. According to cryptographer and trader Rhythm, the market value of bitcoin has surpassed the legal currencies in South Korea, Brazil, Canada, Mexico and Australia to become the 11th largest currency in the world.
In terms of the blockchain scalability, we have kinds of consensus mechanism optimizations, such as Tendermin and Sharding. The new solutions decouple the time and state updates, propose the program for asynchronous processing of transactions. Will the blockchain scalability be redefined therefore?
Since the blockchain has become a new novelty of entrepreneurship, the project with the concept of decentralized storage in blockchain has become very attractive from time to time.
Facing the temptation of trillion data storage market, many entrepreneurs have targeted at the business opportunity.
After the bear market in the 2018-2019, the bitcoin price has returned to around US$10,000. As this transaction volume continues to increase, the bear market cycle of bitcoin has been completely reversed. At the same time, with the impacts of bitcoin halving, access of mainstream institutions and the application of blockchain development, the entire cryptocurrency market tends to be optimistic and more industry-related benefits are being brewed.
Although it’s hard to predict when the super bull market will come in which the price will increase several times within a year, the reversal of trend has provided a very positive signal for our long-term investors: it’s time to get rid of the bear market thinking and be bolder to purchase and store coins.
Just as we have discussed before that from the view of bitcoin address, the proportion of long-term holders are still increasing. Then, for those who choose to hold the coins for a long term, what are the methods to “make profits with coin storage” under the premise of security? Since some mining workers always asked similar questions, we will put into our discussion today.