What determines the issue of bitcoin
The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. 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
bitcoin network generates new bitcoin through "mining". In essence, the so-called "mining" is to use computers to solve a complex mathematical problem to ensure the consistency of bitcoin network distributed accounting system. Bitcoin network will automatically adjust the difficulty of mathematical problems, so that the whole network will get a qualified answer about every 10 minutes. Then bitcoin network will generate a certain amount of bitcoin as block reward to reward the person who gets the answer
the price of bitcoin is determined by supply and demand. When the demand for bitcoin increases, the price of bitcoin rises; As demand decreases, prices fall. At present, only a few bitcoins are in circulation, and new bitcoins are issued at a predictable rate of graal decline, which means that demand must follow this inflation level in order to maintain price stability. Compared with the market scale it may become, bitcoin is still a relatively small market at present. It does not need a lot of money to make the market price fluctuate up and down. Therefore, the price of bitcoin is still very unstable.
1: value is the so-called currency born from the early decentralized blockchain Technology (in fact, the capital owns the centralized computing power, and the capital owns the centralized currency quantity, which may not be ideal here). At that time, people had certain expectations and beliefs. The decentralized low trust cost world chase was a good future imagination, which made most people recognize its value (of course, it also caused negative use value, which could not be controlled and regulated by the government, and provided a lot of extra convenience)
of course, some attributes of digital currency can be used for reference, Now countries are also in the trend of legal digital currency. Due to certain technical reasons, BTC may eventually disappear, or it is difficult to achieve the vision of believers. If there is no better change of technology, the limitation of technology will be phased out with the current development of science and technology
2: of course, the price is basically determined by market transactions. BTC is used by a lot of capital, and more value may be used as financial value Another common perception of price is that the quantity is limited and the output is getting slower and slower. With the increase of the use area, the scarcity increases the price, and the story of halving the price is also a good help for capitalists)
because it is a minority, there is no regulation, so the power of capital has a great impact on the price. The good effect of getting rich can attract more and more people to come into the market. The exchanges of various capital institutions have solved the problems of business instry, gained some additional operating income, and created instries (such as basic financial derivatives and more)
including this year's events, with the epidemic situation and the situation in the United States, new financial derivatives are manufactured by joint institutions. In the secondary market, a new circular wealth story is born. This mode is still relatively solid, with stable prices and rising prices. Of course, the final digester is the ordinary people
at the same time, the characteristics of BTC also lead to a part of human allocation of hedging assets
and so on, the price of BTC is proced under the game
personal final conclusion (for reference only): bitcoin is more of a kind of financial value, its use value is still limited at present, and it is also very difficult to promote in the future. If the technology does not evolve, it will still be small. Of course, the game of the world government is also a certain resistance
the current price is based on the financial game of institutions, and it is stable to a certain extent. The premise is that if there is no new large number of people participating in the game, the current rising trend will slow down, and the gray scale and institutions are also expanding the playing methods of other digital currencies (after all, the number of BTCs targeted by GBTC has accounted for more of the total BTCs - physical contribution plus less cash contribution), But there may still be a rise, but when it will be the top depends on the results of various games (I think there are several points: 1. How long can the game between the trading frequency and holding amount of BTC or other currencies in the primary market last, and when people's purchase and consumption will reach a limit. It can't be bought and sold all the time, there is a limit when what the 2. gradation and what the BTC of the GBTC corresponds to is the two level market digestion of the market, when it will be indigestion is also a game... Etc.)
BTC has bubble, and the financial game of capital is full of bubbles. Of course, this is the opportunity to get rich easily.
but the risk is very high, which is not suitable for the public. It can only be said that it depends on fortune and opportunity
BTC has big moves with every financial trend game
investment should be cautious.
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