The advantages and disadvantages of cryptocurrencies that have received attention

Payment of electricity bills and cooperation with VISA prepaid cards have been reported one after another, and the virtual currency Bitcoin is expanding its usage scene from online to general consumption. There is no doubt that virtual currencies will continue to grow in circulation and penetrate our lives.

Bitcoin was born in January 2009, but initially had no value as a currency. Trading as a currency started when one engineer exchanged 10,000 bitcoins for two pizzas. Now it is increasing its value and growing rapidly.

What about virtual currency as an investment target

There are some good and bad stories about Bitcoin.
There was a success story that the people who had owned it from the beginning built a huge wealth of hundreds to hundreds of millions of yen. On the other hand, there was also a case where the exchange was stolen for more than 30 billion yen due to hacking and the business collapsed. From such a story, it seems that even if you want to aim for a rich sum of money, it seems to be painful, and you get the impression that it is difficult to approach.
Virtual currency such as Bitcoin does not have banknotes and coins like Yen and Dollar, but exchanges codes numbers on the Internet. Exchanging money without using the actual currency is similar to electronic money. However, the range of use of electronic money is limited to areas and companies, while virtual currency is a currency that can be used universally.

Three main characteristics of virtual currency

  1. There are no issuing manager intraditional currencies, managers such as governments and central banks control currency issuance, whereas virtual currencies do not have managers. Instead, you keep each and only one and all transaction history on the network. Issuance of currencies will be made to the calculations performed by the computational resources provided by volunteers in order to maintain the soundness of this transaction history. The act of issuing a new currency by this calculation is called mining, and the process of calculating for excavation is called a miner. And the newly issued currency will be paid to the miners as a reward.
  2. A major feature of virtual currencies that use encryption technology to prevent illegal issuance excavation and abuse is the transaction history called blockchain.

 In the blockchain, the history of transactions that occurred over a certain period is recorded in units called blocks, and each block holds the ID of another block, which is the transaction history that was performed before the block was created. On the bitcoin code you can trade without revealing identity.

If you go back to this, you can check the history of all past transactions. The reason why the block, which is the transaction history from the past to the present, is connected in chronological order is the block chain.
Blockchain uses safety factors such as signatures using public key cryptography, cryptographic hash functions, and probabilities as countermeasures against double transactions and tampering.

Under these circumstances, ensuring the reliability of the currency is important for the development and spread of virtual currencies such as Bitcoin.

 Legal currency is a centralized system that is established by the creditworthiness of the issuer, while Bitcoin is a distributed systemthat is established by the credit secured by mutual monitoring by network participants. 

In order to contribute to the development of virtual currencies, GMO Internet uses the know-how of the Internet infrastructure business and the Internet financial business that have been cultivated up to now to support the sound operation of BitcoinsBusiness.

In order to perform the virtual currency bitcoinmining business, a computer capable of advanced and enormous calculation processing and stable power for operating and cooling.

In order to realize a high-performance computer mining board for mining, we will conduct research and development of semiconductor chips mining chips that utilize the latest 7nm process technology together with our partner companies with semiconductor design technology. In terms of power supply, he will set up a next-generation mining centre in Northern Country, which is rich in renewable energy, and procure clean and inexpensive power to enable operation of facilities at low cost.

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