CCONG

This is a site to help CCONG invest in Bitcoin.

Why are you active in Bitcoin? Why are we passionate about abolition?

Are blockchain and bitcoin really useful? Did you know that Bitcoin mining uses a huge amount of electricity? That electricity is used by graphics cards and dedicated mining chips to calculate hash puzzles, and it is said that so much electricity is consumed that we even have to worry about global warming. So why do we have to use so much electricity and energy to use blockchain? Today we will find out why.

Why is gold valuable and is it likened to Bitcoin?

What if gold was all over the ground and very easy to mine? Of course, gold would have been almost worthless. All you have to do is just pick it up on the ground. In the days when gold was everywhere, gold was plentiful, so in Egypt people’s coffins were made of gold and gold was used to make over 50,000 objects. But as the gold on the ground gradually ran out, I had to dig some ground for the gold to start coming out. At first, you only had to dig about 10cm to find cracks, but you had to dig deeper and deeper to see cracks. The deepest gold mine in modern times is in South Africa, and it is said to have reached a depth of 3 km.

The same goes for Bitcoin. It’s easy to mine at first, but it gets more and more difficult as time goes by. In fact, in the case of Bitcoin, mining of blocks is intentionally designed in such a way that it becomes increasingly difficult and the reward coins are gradually reduced. We call this half-life and it is designed that way. And Bitcoin is even set to no longer be able to mine Bitcoin once the total worldwide supply of Bitcoin reaches 21 million BTC. It’s as if gold doesn’t exist indefinitely on Earth.

Background of the birth of centralized banknotes

Why are cryptocurrencies said to be decentralized and paper money said to be centralized? To understand the reason, you need to know the background of paper money. As explained earlier, gold is a rare metal. Since it cannot be easily mined and is not widely distributed, everyone recognized its value. Therefore, precious and heavy gold could not be stored only at home, so people began storing it in banks. The bank gave the person a paper certificate stating they had kept the gold.

You could get your gold back at any time by taking the gold deposit certificate to the bank. People who deposited gold in a bank sometimes went to the bank with a gold deposit certificate to retrieve the gold and used it to buy goods at the market. But sometimes having to go to the bank was such a hassle that I now paid the bank’s gold deposit to a merchant. If I take this paper to the bank, will they exchange it for gold? Yes, I changed it. Because the bank is a very trustworthy and solid institution, it will not fail. The bank’s gold deposit certificate, which was just a piece of paper, became a new medium of value. This is how paper money was born. Thus, social power became a bank that stored gold, the subject of centralized power.

Can cryptocurrency have the same value as gold?

Cryptocurrency advocates often claim that blockchain-based currencies will replace traditional paper money. But why should we replace established currencies like the dollar, won, and euro? Centralized currencies have significant drawbacks; for instance, when a country’s economy collapses, its currency can lose all value. In contrast, as long as the Internet is functioning and blockchain data is securely stored across many devices, cryptocurrency remains unaffected by national failures. Moreover, cryptocurrency is an innovative technology that relies on proof-of-work algorithms, generating value through complex mathematical problems. It’s like digital gold, earned through effort and time, just like mining for precious metals.

The pace at which all things become digital will be quite rapid as generations pass by. Cryptocurrency is a technological innovation that has the potential to change the world in different ways. There is a reason why so many people are excited about Bitcoin and call it the new gold.