Why is the price of bitcoin high

1. bitcoin is not issued by specific currency institutions, it is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of money circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity
on January 8, 2021, the price of bitcoin exceeded $40000

warm tips:
1. The above explanations are for reference only, without any suggestions
2. Before investing, it is recommended that you first understand the risks existing in the project, and clearly understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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2. UBS has issued a report that the global investment value of regional chain technology will reach 300 billion to 400 billion US dollars in 2027. And the regional chain as an infrastructure development, will be applied to more and more scenarios. It is more and more good projects that push up the price of bitcoin. This is just the early stage of blockchain development. Bitcoin has great potential. If you are interested, you can invest in okex.

3.

The emergence of bitcoin is based on a set of "payment system", and its value was first born because of the choice of "forced and helpless". In the later stage, bitcoin develops in the direction of digital assets and digital gold. In addition, there is a blind area of legal supervision, which gives opportunities to some lawless elements and people and institutions who like to speculate, In addition, some people dream of becoming rich overnight, which sets off a prosperous currency circle. As the world's first digital currency, bitcoin's value has soared tens of thousands of times

After the birth of bitcoin, people didn't understand it at first, but with the development of technology, many people began to preach and preach its value when they knew how to use it, and it was in line with the needs of some people and institutions, With the participation of capital and institutions, it has been pushed to a new height. Combined with the rise and fall of the price of bitcoin in the past five years, almost every big fall has been caused by frequent cutting of leeks. Due to the lack of supervision and extremely serious privatization, many people have not made a fortune overnight through the coin circle, but lost everything

4. Two years ago, bitcoin was considered a fringe technology for liberals and computer geeks. Today, other cryptocurrencies such as bitcoin and Ethernet are gaining mainstream recognition. However, the mainstream group is driven by financial speculation rather than the demand for private money and deflationary medium of exchange. The price of bitcoin and other cryptocurrencies, such as ether and Dasey, fell immediately after the Federal Reserve raised interest rates. Specifically, the price of bitcoin fell by about 16%, while the price of other cryptocurrencies fell by about 25%. However, the price of bitcoin rebounded to the previous high in 18 hours
the reaction of cryptocurrency to the Fed's interest rate increase shows that cryptocurrency is regarded as a safe haven investment against the background of the continuous dilution of the value of major legal currencies. That's why demand for bitcoin has risen in countries where fiat currencies have fallen, such as India and Venezuela
however, if the Federal Reserve continues to raise interest rates, the market demand for cryptocurrency may decrease. The reason is that when the Fed stops printing new money, there will be less new money flowing into assets such as real estate, stocks and cryptocurrency. As a result, investor demand for anti inflation assets will decline.

5. Bitcoin is a virtual currency, and its price is suspected of artificial speculation. At the same time, it is expensive because it is rare
the concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009 [1]. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design to ensure the security of all aspects of currency circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity
on December 17, 2017, bitcoin reached an all-time high of $19850. On July 27, 2020, bitcoin broke through the $10000 mark again.

6. Hello, there are three reasons for the surge
reason 1: the cost of mining bitcoin may be further increased
bitcoin is deflationary in nature, which means that the proction of bitcoin will decrease over time. The key is that in the near future, the return of bitcoin mining will be reced from 25 bitcoin to 12.5 bitcoin
the price halving will take place when the 420000th block of bitcoin is g up, which is likely to come in the next few weeks. We don't know how market prices will be affected at that time, but several news reports say that the price surge in the past week may be partly e to the imminent pressure of reced mineral supply< The second reason is that the public's interest in bitcoin has been rekindled by the speculation on the new e-currency.
Ethereum, as a blockchain technology, has been strongly supported by banks and VCs, and has been talked about a lot by experts in science and technology circles. In short, many people think that Ethereum is faster and more reliable than bitcoin, and may even replace bitcoin as a better electronic currency
the emergence of competitors is of course bad news for bitcoin. However, an article on the quartz website assumes that the rise in the price of Ethereum may in turn stimulate the price of bitcoin. But so far, there is no evidence that there is a strong correlation between the two e-money prices
the third reason: China, China, China
China seems to be the most convincing reason behind the soaring price of bitcoin The Wall Street Journal said:
at present, about 92% of the global bitcoin transactions are completed on huobi.com and okcoin, two Chinese bitcoin trading platforms. The rise in bitcoin prices over the weekend may be just the latest sign that Chinese investors are shifting money between different assets in search of higher returns
China's economic situation has influenced the fluctuations of bitcoin in the past. Therefore, we have reason to believe that this round of inflation is also related to China
at the same time, experts also mentioned the Chinese investor effect in their comments on reddit and twitter, and they think that this effect may not last long. If it turns out that the buying frenzy of bitcoin is just a passing stop for asset transfer to other forms, the current crazy situation will end.

7.

This year, bitcoin prices have risen 23%. The last intraday high hit was $1161.88 on January 5, 2017, and the highest record in terms of closing price was $1137 in November 2013

mt.gox, the earliest established and most well-known bitcoin trading platform, announced the closure of its website, and then the news of its bankruptcy came out in the market, which immediately triggered market panic around the world. Affected by this, bitcoin's offer was slashed. Since then, the price of bitcoin has gone up and down like a roller coaster. Sometimes the price of bitcoin seems to have something to do with the current economic situation and changes with the influence of some news, but sometimes it has no reason

Thirdly, the establishment of the first bitcoin Exchange Traded Fund (ETF) was approved by US financial regulators. Analysts believe that the approval of bitcoin Exchange Traded Fund (ETF) will make the currency more attractive to more cautious investors

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the post bitcoin price hit a new record, or these three reasons

8.

Bitcoin trading continues to be close to an all-time high set this month. Now its price is around $34000, up 77% from last month and 305% from last year

bitcoin was first introced as a digital currency in 2009, and was used as a digital currency on the edge of the economy for a period of time. This has become mainstream. Today, it is used almost exclusively as a "digital gold.". In other words, a scarce digital asset

to cope with novel coronavirus pneumonia, the governments of various governments have injected the central bank's money into the global market to stimulate consumption and help save the economy. p> However, the increase of money supply will erode the value of money and lead people to look for anti inflation assets to hold. In this environment, bitcoin has become a hedge against impending inflation and poor returns on other types of assets

but what function does bitcoin provide for a society where people invest so much? Why is bitcoin important? There are several possible explanations for why so many people now think bitcoin is important

this is a kind of "safe" asset. In the face of global uncertainty, buying bitcoin is a way for people to disperse their assets. Its market value can be compared to gold, another asset that glitters in difficult times

in the turmoil of global pandemic, the unconventional US presidential handover and the transfer of geopolitical power around the world, more people may think that gold and bitcoin are better alternatives to the US dollar

it is related to privacy oriented ideology. Bitcoin (and cryptocurrency in general) is not politically and ideologically neutral. It was born in the Internet age, an era deeply troubled by privacy issues

the ideological origin of bitcoin is the "cryptopunk" movement in the 1990s and the beginning of this century. According to online forum records, bitcoin is advocated as an anonymous digital currency, allowing people to interact online without being tracked by governments or companies, providing an alternative for anyone who does not trust the federal central bank system