Many of my friends have recently asked questions about Bitcoin, so it’s a good idea to answer them here to improve the knowledge of the Bitcoin network.
1、Is it ten minutes to generate a block?
Theoretically, it is 10min, but in practice, it is normal for an hour not to generate a block.
2. Will mining become easier over time?
The difficulty will be adjusted every 2016 blocks. If the network’s computing power increases and the overall block output time is less than 10min, the difficulty factor will be increased. Conversely, if the network’s computing power decreases and the overall block time is greater than 10min, the difficulty factor will be reduced.
Note: The math of mining is like this, for example, if you have been digging for 8 minutes, then is there 2 minutes left to find the right number and then you are done? No, it still takes ten minutes. Even if an hour has passed and still no blocks have been mined, that still takes ten minutes. The time it takes to mine and the time it has been stuck without a block are not related.
3. What is the one-hour full confirmation for bitcoin transfers?
It takes theoretically 1 hour to fully confirm six blocks. This means that theoretically, after 6 blocks, it is not easy to tamper with the blockchain information. In practice, it doesn’t take that long to transfer money.
4. Controlling 51% of the calculation power will produce an attack (double-spend attack)?
In fact, it is very difficult to attack even if you have more than 51% of the power, but there is just the possibility of an attack. And this situation has not happened.
5. What organizations are most likely to attack the Bitcoin network? If it is cracked? What technology? Is it quantum technology?
a. To the best of my knowledge, the only person most likely to break the Bitcoin network is Academician Wang Xiaoyun.
b. Quantum computing is an algorithm change and not a violent crack, and it is not possible to attack the bitcoin network at the moment.
6. How does the complexity of the Bitcoin network compare to other networks like Ethereum and Polkadot?
The complexity of Bitcoin, Bitcoin Cash, and other Bitcoin forks is basically the same. Ethereum is much more complex, and if you can really figure out the technical principles and economic model of the Ethereum network, then most of the projects on the market can be figured out.
7. Bitcoin is known as digital gold, so should I invest in bitcoin or gold, or real estate? (Fan’s question, beyond the blockchain involved)
a. Housing is not speculation is the basic state policy, if it is housing needs, you can always buy, now the price of first-tier cities is not high, according to the experience of relatives and friends, more than five suites to manage has been very troublesome. The life of the chartered male chartered female as told on the internet is not that cool, those things that are lying to collect money are legends.
b. Gold is something my mother likes to buy, and it looks a bit more stable. I can’t give advice.
8. Where is the high point of bitcoin in 2021?
40–60,000 USD. This is a prediction I’ve made before, and now Bitcoin has reached about $30,000. Some say it will go up to $60–80,000 in 2021, and others say it will break $100,000, or even $1 million. I stand by my opinion.
9, why the current electricity bill of S19 and S19pro accounts for less than 30% or even less than 25%, even if it is calculated according to 35 cents or 38 cents for the whole year. Do you still not recommend participating in mining?
Well, it is not recommended for ordinary retail investors to participate. Large investors and those with superior resources can ignore this advice on their own.
The best time to mine has largely passed ( it is less risky to participate in early 2020 and October and November and insist on mining). Mining is a heavy asset investment, need 10P computing power to form a certain scale, in order to communicate with the mine trustee a more detailed and robust program. In other words, you have to own 100 mining machines like S19 95T, or S19pro 110T computing power before a large formal mining farm will talk to you properly, which is equivalent to a miner to start, and the mining industry has a lot of capital people or institutions. These institutions mining is not to pursue ultra-high returns, as long as the annualization of 20–30%, they will be satisfied. The reality of many companies serving institutional investors is similar.
Do you know what is the damage rate of consigning mining machines from Xinjiang to Sichuan, and do you know that if the mining machines are broken, are there professional personnel to repair them? Do you know what the qualifications of the hosting mine are?
I have one friend who works in mining pools. Two years ago, he bought hundreds of thousands of mining machines, which were just pulled into the mine and were seized by the local public security. The timing and resources of this kind of thing is hard for individual investors to grasp.
Some of my friends have invested in mining machines 13 million yuan and finally found that it is better to hold BTC and do not transact. That said, if you have to mine or choose bitcoin mining, graphics card mining is more problematic because it is easy to break.
Even the new models are not very good, and there are always three or five machines in 100 mining machines that have been unable to work. Though it seems to be better now, it is still not durable, and the rate of damage to the consignment is higher.
This is also an answer to a fan’s question. The resources are there and professional. But now is not a good time to make that money.
10. Is Bitcoin deflationary?
No. The overall number is capped at 21 million and daily mintages are cut in half once every four years, so it is considered to be a deflationary economic model. In fact, the number of bitcoins is currently increasing every day. after the block reward is halved in May 2020, the number of bitcoins coming out will be about 900 per day, and after the next halving (2024) the number will be 450 per day.
11、What is the most important thing to pay attention to in a bull market?
The most important thing to pay attention to is not to borrow money to invest hard. Reduce your position when it’s the time, work well, exercise well and enjoy life. Losing money in the bull market is much more violent than in the bear market because, in the bear market, you will only lose your own money, but in the bull market, you will be bold, and you will lose the money you borrowed. Don’t worry about making less, what you should really worry about is losing money.
12. What do you think about investments in the DeFi space?
The risk is getting higher, smart contracts are not becoming mature over time, and code vulnerabilities are frequent. It is more suitable for short-term speculation.
Article from Chidu Blockchain
Translated by Yang(Mengyan Finance)