Why does Bitcoin use CPUs (why is Bitcoin priced in US dollars)

Why Bitcoin uses CPU Editor’s note: This article is from BlockBeats (ID: blockbeats), author: 0x29, reprinted with authorization by Daily Planet Daily Why does Bitcoin require a CPU? It is determined by two key factors:

1. Each part of the blockchain system is generated to handle specific tasks; 2. 5G and Big data make it more and more difficult to calculate and verify the workload; 3. Memory “is the most commonly used form of work for miners during the execution of transactions For most ordinary users, hardware resources that cannot guarantee reliability due to limited storage space and high difficulty in use often lead to network congestion. But this is related to the development of computer technology, because it can solve complex problems not only limited to Cryptocurrency, but also has many other uses, such as decentralized finance

But the problem is that as a distributed ledger, Bitcoin is not designed for anyone, but is developed based on the Ethereum smart contract platform. The emergence of this platform is to achieve this goal. So, Bitcoin is not a single application or database system, nor is it an independent technological solution. In fact, when you run your own node, you must have a client to maintain the security, integrity, and stability (including ownership) of the entire system. If we want to become the core infrastructure for the next generation of internet applications, the content you build can not only fundamentally change existing software models, but also make them more efficient Therefore, either solution can help Bitcoin gain a larger user base. Although Bitcoin has developed to a certain extent, there are still some limitations to Bitcoin. Firstly, its performance is far lower than the current mainstream network speed. Secondly, it can only perform several confirmations per second – which means there is almost no upper limit to the number of transactions on the network, thereby affecting the user experience. In addition, over time, transaction costs may increase or even exceed the average. Finally, even the most advanced blockchain networks may put pressure on certain services. The reason why Bitcoin adopts this method is because it increases the speed of energy consumption required for mining to a faster speed than now through a method called a “mining machine”. However, the ‘mining machines’ (also known as miners) are not fully responsible for these tasks, they only participate in the mining of Bitcoin and other digital assets. On the contrary, their activities mainly involve paying for goods to those who want to sell electricity to companies or individuals, rather than directly purchasing goods and services. This is the main use of ASIC chips In addition, although ASIC has many benefits, such as allowing mining personnel to generate income from idle data, in the current era, only a few people know that they have a large portion of the data, or only control some basic information to obtain more profits

Why Bitcoin is priced in US dollars

Editor’s note: This article is from Babbitt Information (ID: bitcoin 8btc), written by Robert Stevens, translator Congee overnight

According to cryptocompare.io data, the US dollar plays an important pricing role in the price of Bitcoin. At present, the mainstream Cryptocurrency in the market uses this Unit of measurement for trading and valuation. “It is reasonable for us to use Fiat money to purchase, sell or hold digital assets.”

According to the data of CoinMarketCap, between January 3, 2019 and the end of February 2019, about 100000 BTC/USDT balances on Bittrex, the world’s largest exchange, were converted into dollars, which shows the strong demand of market participants and the growing demand of institutional investors for this asset. However, over time, various factors have led to these changes, and this issue has gradually been resolved, thus receiving some attention and discussion. Why should we use US dollars for pricing? “Said Kevin Rooke, a US economic policy researcher, When you consider whether a new way of storing value is needed, it will replace gold as the way of storing value, “he added If a country issues its own sovereign currency, the US dollar is equivalent to other countries’ fiat currencies, and its market value now exceeds 2 billion US dollars, which means that the US dollar accounts for more than 1% of the total international commodity market. However, if you exchange all fiat currencies for Bitcoin, there will be a significant loss. To make Bitcoin prices more volatile, governments often introduce “double standards”, That is, the government does not tighten the monetary system in any form, but uses a variety of methods to make it a viable Currency substitution, such as printing money to achieve exchange rate stability, reduce inflation, prevent malicious activities and even sanction terrorists, so as to improve the speed of capital flow, thereby reducing the flight of speculative capital overseas to a certain extent, and avoiding excessive regulatory restrictions in the traditional financial system.