China’s central bank explains how Bitcoin works

The Chinese Central Bank has published an explanatory diagram of Bitcoin (BTC) on its official website.

The graphic in question illustrates the history of Bitcoin from the release of the draft project in 2008, important milestones such as the first 50 “bitmined” Bitcoin, to the announcement of the Facebook cryptocurrency Libra in recent weeks.

Among other things, the infographic explains how Bitcoin obtains its value, with the authors citing its limited amount of circulation, the increasing difficulty of mining, and its main function as a means of payment and storage.

Bitcoin’s role as a store of value and protection against rising inflation has recently been confirmed by Anthony Pompliano, co-founder of Morgan Creek Digital Assets, who sees the monetary policy of the European Central Bank (ECB), which will soon be putting new money into circulation, as “fuel” for Bitcoin sees.

Furthermore, the explanatory diagram also mentions the hacker attack on the crypt market Mt. Gox as a warning example for investors. Similarly, the risk associated with speculation is mentioned, for which personal accounts of significant losses are cited as representative.

image by Shutterstock

Bitcoin News

TheBitcoinNews.com – Bitcoin News source since June 2011 –

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.

Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.

Advertise with us : Advertise