131. What is the difference between the Bitcoin system and the commercial banking system?

Answer: Bitcoin has an extremely high level of machine credit security. Transaction information is publicly recorded and needs to be verified through the consensus of computing nodes on the network system. Although anyone can view the transaction records, the real identity behind it is usually anonymous and can prevent manipulation and tampering by a single institution or individual. At present, the price of Bitcoin is highly volatile. While price fluctuations create arbitrage opportunities, they also expose currency holders to the risk of losses.

The security of banks mainly relies on traditional security precautions such as firewalls, encryption, and identity verification, and banks bear the responsibility of protecting deposits to a certain extent. However, banks are centralized financial institutions without achieving complete machine credit. Therefore, although banks keep customers’ personal information and transaction records confidential in principle, authorized insiders can still learn about it. In addition, commercial banks also face risks such as bubble lending, devaluation of deposits, and even business failure.

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