Past Headlines...
Hello Audience, thank you for watching Economics Half Hour.
I am Ma Hongtao.
Recently, these online, virtual currencies named "Bitcoins" slowly creeped into the mainstream's view.
In addition, domestic media sources broadcasted another bit that brought it closer to the hearts of Chinese people.
According to these reports, after the Sichuan Earthquake, Bitcoin was used as donations entered the account of the relief fund.
So what is Bitcoin?
So where did bitcoin come from, and what can it be used for?
This enigmatic currency is what we will explore today.
Today, just like any other day,
Duai starts the day by turning on his computer to go to a bitcoin mining site.
8484..
Every minute the numbers are moving. It's exciting.
I am making money, I am making money.
A short couple hours, Duai didn't do anything.
The computer mined 0.85 BTC.
He then opens China's largest exchange website.
Today's exchange rates are 800 RMB/BTC.
This means, Duai made 700 RMB over the last couple hours.
Sung is also a Bitcoin enthusiast.
He and his comrades (lol) often talk about the bitcoin market.
Did you buy any?
I bought a little bit a while ago at 790.
Got in at the right time.
[Some Chinese idiom that idk describing] Bitcoin was born 4 years ago.
In 2008, someone using the pseudonym Satoshi Nakamoto
posted a research paper on a secretive cryptography mailing list
that detailed his thoughts regarding Bitcoin.
In 2009, he helped this organization establish an [domain name/open source?] project.
officially announcing the birth of bitcoin.
He's never shown his face, and later retired from management
So whether this guy is a single person, or a group of people, on one knows.
Bitcoin does not rely on any central distribution agency
but rather uses a peer-to-peer, distributed storage
to assist with the transfer of currency.
And it uses cryptography to secure every step and reliability of the currency.
Users can use computers, following the pre-set rules,
use large number of calculations to "mine" bitcoins.
During "mining," the computer searches for 64 digit numbers.
Using continuous [crytographic solving?], it provides the network with [something]
If the miner's computer successfully solves the correct number, he is rewarded with with 25 BTC.
Because the bitcoin network adjusts the difficulty level, only 25 BTC are rewarded every 10 minutes.
Meanwhile, users can instead trade online to obtain bitcoins.
This machine room is Zhaiwenjie's mining location.
All of these converted machines are specialized to mine Bitcoin.
These graphics cards calculate day and night, the temperature inside the room is noticibly higher than outside.
It's so hot it can almost cook eggs.
It does indeed seem hotter here.
How about the power consumption?
Power costs about 60 RMB (~$10) a day.
These are burnt out cards.
How many have burned out?
About... 10.
Sunminjie’s machines are also haven't stop running.
Although the temperature is high when sitting next to the computer, he is very happy.
Mining is repeatedly running a very complicated encryption and decryption algorithm.
Then it will be equally distribute to the people who connected to the network.
Those who contribute the most (hashing power) will recieve the most.
Although Bitcoin is a virtual currency that can’t be seen or touched, it cannot be ignored.
On 23th April, “One” Foundation announced, had received the Intention to donate of 50 Bitcoins.
This is the first time Bitcoin was used as donation in China.
After a few days, the sum increased to 230 BTC.
In the small remote European country, Cyprus, Bitcoins also showed its great promise.
This year, Cyprus government collected taxes from bank deposits.
And people suddenly discovered that the unregulated virtual currency Bitcoin can evade taxes.
and exchange with US dollar and many other currency, thus decreasing their "Loss of wealth."
Bitcoin ATMs even appeared in Cyprus.
So what is Bitcoin in the eyes of the users?
