The advent of the internet and machine learning is the third scientific and technological revolution of mankind. Their lives change the way people produce and work all over the world. We are more dependent on the internet.
The economic downturn and the free exchange of information have shown us the quality of the current economy. Government issuing government money is a loophole.
Bitcoin was born as a combination of computer science and economics. Bitcoin creates equality among individuals using Bitcoin.
Mining the Bitcoin way makes this coin valuable alternatively because of its ease.
We have to admit that Bitcoin is the monetary future that everyone aspires to and it represents fairness and transparency with blockchain technology. It is the greatest invention that people aim to get out of the strangulation, tyranny of big governments in running the economy.
Topic: What is the reason and motivation of Bitcoin? (Read 111 times)
As you said, the reason why gold and silver can become general equivalents is precisely because of its scarcity. The reason why paper money can replace gold and silver is that it is not only scarce, but also more convenient to trade. And I think Bitcoin will eventually replace paper money, at least I think so. In fact, in China, people rarely use paper money. Everyone uses Alipay. To some extent, the renminbi has become a digital currency. So I think digital currency is actually a trend. When most people in the world recognize Bitcoin, it will become a world currency. Even the government cannot stop this trend.
The motive is stated explicitly in the introduction of "Bitcoin: A Peer-to-Peer Electronic Cash System":
Quote from: https://bitcoin.org/bitcoin.pdf
1. Introduction
Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for nonreversible services. With the possibility of reversal, the need for trust spreads. Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party. Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers. In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions. The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.
Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for nonreversible services. With the possibility of reversal, the need for trust spreads. Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party. Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers. In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions. The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.
Currency was originally physical currency, such as shells, gold and silver, etc., because of their scarcity, they were used as general equivalents. The "Jiaozi" issued in the Northern Song Dynasty is known as the earliest currency in the world. Its production cost is very low, maybe even a few cents, but it can buy and exchange items that exceed several times the value.
With the development of the Internet, electronic money gradually enters the lives of the general public. In 2008, when the global financial crisis broke out, Satoshi Nakamoto planned to create a new type of payment system... Electronic money circulating all over the world.
After that, Satoshi Nakamoto combined open source software and the working mode of block cryptography in cryptography, and developed the operation of Bitcoin issuance, transaction and account management on the P2P (peer-to-peer or person-to-person) peer-to-peer network and distributed data platform. system. With this system, all nodes throughout the peer-to-peer network client can reach a network agreement in accordance with their seed files, ensuring fairness, safety and reliability in all links of currency issuance, management and circulation.
This is the reason and motivation behind Bitcoin.
With the development of the Internet, electronic money gradually enters the lives of the general public. In 2008, when the global financial crisis broke out, Satoshi Nakamoto planned to create a new type of payment system... Electronic money circulating all over the world.
After that, Satoshi Nakamoto combined open source software and the working mode of block cryptography in cryptography, and developed the operation of Bitcoin issuance, transaction and account management on the P2P (peer-to-peer or person-to-person) peer-to-peer network and distributed data platform. system. With this system, all nodes throughout the peer-to-peer network client can reach a network agreement in accordance with their seed files, ensuring fairness, safety and reliability in all links of currency issuance, management and circulation.
This is the reason and motivation behind Bitcoin.
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