Bitcoin Christmas effect
Finally, I saw someone separate blockchain from bitcoin
in fact, bitcoin and blockchain are not the same thing at all. Many people just have a chivalrous understanding
this is what a 36K article says. I think it is very objective
in bitcoin and blockchain, "network effect" is a misunderstood concept, because its internal elements are difficult to be clearly depicted. The internal factors of network effect are multi-dimensional, and not so many people can directly experience great network effect. As consumers, we are only users of this kind of network effect. We think we can understand the network effect from the outside, but it is not enough to judge whether the network effect exists
when we discuss the ecosystem of bitcoin and other cryptocurrencies, we always touch on the topic of "network effect". Many people will misunderstand this and even claim that bitcoin's network effect is the most powerful because of its liquidity and ongoing mining activities. So let's go back and see what "network effect" is
as far as I know, the summary of "network effect" by USV is the most complete:
scale: must be very large
mutual connectivity: in a network, each group or system must have interoperability (this is the basic requirement)
User Participation: at least every day (or every week), a certain percentage (30%) of users will come back for reuse
User Experience: it must be unique, original, and can create some new value when users use it
network effect: when new users are added, the service value of each original user will increase, and the value of the network itself can further increase
defensive: with the growth of the service itself, the value of new users will increase, and the entry threshold will graally strengthen
profitability: when the whole network matures and operates, one or several parts can become a sustainable economic base
What is the ecosystem of network effect In order to evaluate the network effect correctly, we need to look at the ecosystem from three dimensions:1
(2) the components of ecosystem Participants and actors However, if you want to create more network effects, You also need to consider:the number of apps and services
the number of users using apps
the total capital of the market
the number of developers
Security
the ability to scale
dependability
marketing < /p>
if you evaluate bitcoin correctly, you will find that it is still leading as cryptocurrency, its consistency is steadily improving, and the blockchain platform is graally developing. However, there are still many blind spots in its future, such as large-scale ability, and the number of daily active users is not enough. It's too early to judge the network effects of bitcoin and blockchain
don't forget:
without users, there is no network effect
in the past 24 hours, 100000 bitcoin users burst their positions, and bitcoin fell below US $30000 / piece, down more than 5% on the same day according to the real-time data home page of bitcoin, the whole network exploded $42.2545 million (about 272 million yuan) in one hour, $1.353 billion (about 8.712 billion yuan) in 24 hours, and 94983 people in the last 24 hours. It is worth mentioning that bitcoin's roller coaster market appeared on the 4th. It plummeted more than 15% in a day, down more than $3500 from its peak
the number of daily active addresses of bitcoin can be regarded as the increment of new users of bitcoin. The increase in data represents an increase in new users, which indicates that oversupply will drive up prices. There is a positive correlation between the network computing power of bitcoin and the price of bitcoin. Therefore, if the computing power of bitcoin increases, the probability will soar. A key feature of bitcoin is that new coins must be discovered or mined before they can be put into circulation. Unlike legal tender, the government can print new banknotes. When a new bitcoin is mined, its records are added to the blockchain, which is actually a huge ledger recording all bitcoin transactions. The influence of news< the government's policy support and the access of large enterprises will push up the price of bitcoin
At present, a small number of people in the society are extremely enthusiastic about bitcoin. They think that bitcoin is a perfect thing, and there is unlimited imagination in the future
they even think that only holding legal currency can see cash out. Most will hold bitcoin for a long time
therefore, different people's cognition of bitcoin will lead to different value attributes of bitcoin
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official account: Fintech observer, from finance to technology, from technology to finance, together to wealth freedom! p>
because this web page is updated by JS file,
it can only imitate the browser to accept and analyze the web page after JS running.
Many people are familiar with bitcoin. Bitcoin and other cryptocurrencies belong to virtual investment goods . Since it is the normal situation for investment goods to go up and down. This time, there was a big drop and a market crash, but this does not mean that bitcoin will be completely out of the stage of investment procts
before that, bitcoin has been rising for more than a year in a row. Although many investors have expected bitcoin to adjust when it is bound to fall, the collective collapse of cryptocurrency is not common, and such a huge decline is even rare, which has attracted the attention of many investors and netizens. The reasons for the collapse of bitcoin and other cryptocurrencies are graally emerging
The behavior of
has also seriously stimulated ordinary investors. There are many people who believe that this behavior contributed to the aggravation of the collapse of cryptocurrency
despite all kinds of adverse news, people are also full of doubts and scrutiny about the future of cryptocurrencies such as bitcoin, but as long as bitcoin as an investment proct, its profit effect exists, it will still attract countless investors. The collapse will also cause people to reflect on whether we need to retain more reverence for value and margin of safety
Today, with the rapid development of information technology, real money is far from meeting people's demand for capital flow. virtual currency is the information flow or data flow that replaces the real currency in high technology. Virtual currency is different from check and telegraphic transfer. Virtual currency can not be transferred. At present, it can only be circulated in the network world. Virtual currency is released by each network machine, and there is no unified issuance and management standard. According to incomplete statistics, there are no less than 10 kinds of network virtual coins in circulation, such as Q coin, u coin and so on. Take Q coin as an example, with more than 300 million users. It is understood that the domestic Internet has a virtual currency market scale of several billion every year, and the growth rate is relatively large. Virtual currency is a newly emerging form of electronic currency in recent years. In essence, this kind of virtual currency is a form of goods. It is the result of a series of digital program algorithms through a series of mathematical algorithms. Virtual currency is also a kind of currency in essence, which can be used for trading
one Christmas, an editor of the financial times decided to buy bitcoin, a special Christmas gift for his parents. The reason is very simple. For the first time before Christmas, the value of bitcoin exceeded US $10000, which rose more than ten times in a year. Moreover, young people in Europe and the United States are talking about bitcoin. A survey found that 30% of the 20-30-year-old people in the United States have bought bitcoin. They don't know what bitcoin is, and they will definitely fall behind. The idea of taking bitcoin as a gift, on the one hand, can let oneself also try water in the coin circle, on the other hand, can also let the elderly parents play something new
as a result, the editor, who bought a $100 bitcoin, kept an eye on the market of the exchange every day ring the days when bitcoin jumped up and down, for fear that bitcoin would plunge into the water with his gift. On Christmas day, he spent half a day wrapping the electronic money of bitcoin for his father, and it took a lot of trouble to transfer the bought bitcoin as a gift to his father. After the transfer, he received the bill - the transfer cost was $30, which could be confirmed an hour later. Dad was very happy. He called in the new year to say that the bitcoin in his account had risen to 85 yuan
bitcoin is now the most popular cryptocurrency. To understand what bitcoin is, we need to explain it in several steps. First, it is cryptocurrency. Transactions are secure and will not be tampered with, because it relies on a technology called blockchain; Second, the blockchain technology is a kind of distributed general ledger that can safely record transactions, that is, a technology that stores transaction data on all networked computers, because each transaction needs at least half of the networked computers to confirm, so it ensures the security and transparency of transactions; Third, because of the use of distributed blockchain technology, bitcoin is different from the legal tender known as RMB or US dollar. It is no longer issued by the Central Bank of a country, there is no credit endorsement behind the country, there is no central authority to determine the currency value, and there is no central trading system to verify transactions
in 2016, the economist's cover article "trust machine", which introced "blockchain", was regarded by bitcoin insiders as a landmark event for bitcoin to enter the mainstream crowd According to the article of the economist, blockchain, as an emerging decentralized technology, has broad application prospects not only in the field of digital currency, but also in many fields such as supply chain, medical treatment, real estate transaction, etc
however, bitcoin has risen from less than $1000 in early 2017 to a maximum of $20000. Although this round of rise has made it a household investment, it is further and further away from the digital currency as a substitute for legal tender
if measured by the three main functions of currency, bitcoin can not shoulder any of them. The three main intelligences are value reserve, circulation means and pricing unit. Let's see why one by one
let's look at the stored value method first. The price of bitcoin has been soaring all the way. Recently, there is a roller coaster market. The price often fluctuates 20% to 30% in one day. If bitcoin is used as a value reserve, the volatility will obviously make people nervous: if you bought a car with bitcoin in January last year, the same amount of bitcoin will be enough for you to buy the most expensive sports car in January this year
As a means of circulation, bitcoin is also very weak and not environmentally friendly. In the first example, the editor of the financial times had to pay $30 to transfer bitcoin, and it took more than an hour to get it. There is no way to compare this with the free real-time payment of wechat wallet, and even less with the system that can handle hundreds of thousands of transactions per second. The reason for this is that bitcoin has set the rule that it can only process seven transactions per second, while at least 50% of the connected computers are required to confirm, so each transaction costs 275 kwh. Bitcoin's total annual electricity consumption is enough for Morocco, a small country in North Africa. In other words, with the existing technology of bitcoin, there is no way to meet the needs of global digital transactions Finally, as a unit of valuation, bitcoin will have problems if it is widely circulated. For example, if your housing loan is priced in bitcoin, the house price has not increased much in the past year, and your debt may have increased more than ten times if it is converted into RMB. Without a stable currency value, bitcoin could not support slightly more complicated financial transactions
then why can bitcoin Soar so much? In fact, the reason can be described in one word: fomo, which is the abbreviation for fear of missing out. Every one of us is afraid of missing this opportunity to make a fortune. If the story of people around us who are speculating in bitcoin and suddenly become a billionaire spreads, more and more people will buy bitcoin because of the money making effect. There are so many examples of such rapid bubbles in history. If many investors buy an illiquid asset, the price may double. p>
but fomo belongs to fomo, and the blockchain behind bitcoin has great potential, which is why the economist calls it a "credit machine"
some people regard blockchain as the future Internet. But the problem is that the application of blockchain in various fields mentioned above can be completed with centralized database. Blockchain has not brought advanced technology, and even has bottlenecks in the speed and frequency of transactions at this stage. So why do you do that? The answer lies in the concept of decentralization. Centralization means that all data are placed in a core database. When the database becomes larger and larger, it will face more and more security risks. Similarly, for each indivial, if data concentration in a center also gives the center great power, how to ensure that this power is not abused? Blockchain technology is the representative of "decentralized" technology. Decentralization, as the name suggests, means that there is no longer a core, no longer a center that commands and has authority, but a new organizational mode of decentralization, in which every participant is equal
therefore, the driving force behind the promotion of blockchain applications is actually to achieve a certain balance between the core and the public, that is, between the center and the decentralization. Another problem that centralization may lead to is that platform dominance will curb competition, just as our digital economy has been dominated by faang and bat. The United States is Facebook, Amazon, apple, Netflix and Google, let alone bat in China. The decentralized model dominated by blockchain can encourage the creation of new competitive markets
another point is also very important. Many experts hope to automate more processes by virtue of the transparent and tamper resistant characteristics of the data on the blockchain, as well as the characteristics of its smart contract, such as completing a transaction when a certain agreed condition is reached, and auditing the process at the same time. This feature of blockchain is particularly effective in some markets with corrupt government and lack of rules, which is why there are real estate transaction applications based on blockchain in some Latin American countries
look back at bitcoin and the explosive but problematic ICO market. Both experts and people in the instry are talking about the word "token", which is the meaning of adding a token to the chain. Bitcoin mania tells us how amazing fomo's wealth effect is. However, some experts believe that the blockchain with token can better motivate the participants to find the potential security risks on the public chain and make the blockchain based applications more efficient
Finally, although bitcoin has become a "dark horse asset" sought after by funds, the rise of crypto digital currency should still cause people to think about what money is and how money is created? If money is based on some kind of credit that more and more people think is valuable, then the next generation of cryptocurrency may open up many other possibilities. Don't you see that Venezuela, which has been plagued by inflation, has issued "oil currency"? It is hoped that this kind of petroleum currency, which claims that every petroleum currency is directly linked to every barrel of crude oil, will not collapse as fast as the gold dollar. After all, Venezuela has plenty of oil, and the blockchain itself has credit that is not so easy to tamper with