Is bitcoin the product of the bubble economy?
there should be key settings over there
but one of the chain mining presets I know seems to press v
Not long ago, the total value of bitcoin in the world exceeded one billion US dollars for the first time. For a pure virtual currency without the support of a central bank or other authority, this is a remarkable achievement. But this is also temporary: we are experiencing a bitcoin bubble, and the bursting of bubbles is only a matter of time. P>
says bubbles are doomed to break down for several reasons. The first is: because it is a bubble, no matter what charts, if it grows into the above picture, it will usher in tears at the end of a certain moment. but there is a deeper reason - bitcoin is a strange mixture of goods and money. The commodity value of bitcoin is generated by its monetary value, but as its commodity attribute becomes more and more significant, its use as currency becomes smaller
the distrust of existing financial institutions by these people, including Nakamoto, is no exception. What makes Nakamoto different is that he turns this distrust into a philosophy, which is the most important driving force behind the bitcoin project. When he introced bitcoin to the world in February 2009, Nakamoto boasted that his new currency had achieved "complete decentralization and there was no credible party". Moreover, he explained in great detail the problems that he thought should be solved urgently:
"the fundamental problem of traditional currency is the trust needed to make it work. We must trust the central bank not to devalue the currency, but the history of fiat money is full of betrayal of this trust. We have to trust that banks will save our money and transfer them electronically, but they still lend money without reservation in the rising credit bubble. We have to trust them with our privacy and trust them not to let impostors take money out of our accounts. "
Nakamoto is not paranoid: what he said here is the same as Warren; What Mr. Buffett said in his letter to shareholders in 2012 doesn't make much difference
" under the current monetary system, known investment types include money market funds, bonds, mortgage loans, bank savings, and other forms. Most of these money based investments are considered "safe.". In fact, they are among the most dangerous assets "in the past century, these investment methods have destroyed the purchasing power of investors in many countries, even if they can continue to harvest principal and interest in a timely manner. In addition, this terrible consequence will reappear again and again. Governments determine the final value of money, and systemic factors occasionally bias them toward policies that trigger inflation. From time to time, such policies get out of control "even in the United States, which strongly appeals for currency stability, the depreciation of the US dollar since I took over the management of Berkshire in 1965 has reached an alarming 86%. What you could buy for a dollar back then costs as much as seven dollars today. " if you hold dollars, you have to trust the US government not to destroy your wealth. By contrast, bitcoin is built on distrust - it's designed to be a "everyone for himself" currency. In vain, because of his stupidity, he was criticized by many people in the bitcoin world: what did he think of storing his e-wallet on an Internet connected windows machine but even when using bitcoin, people have to trust others in the end - and the objects they trust often turn out to be unreliable zero trust this degree of distrust is not only a feature but also a loophole compared with the special coin - in fact, most of us are willing to outsource the task of hoarding wealth to a large trusted organization, rather than hiding $1000 under the black volcanic rock in the stone wall of the old oak root, Or a $90000 100 dollar bill wrapped in aluminum foil and hidden in the refrigerator. Managing bitcoin yourself is risky and requires high computer skills. But the trust needed to entrust one's own bitcoin to others is exactly what bitcoin aims to avoid bitcoin's inherent suspicion of financial institutions not only distinguishes it from legal tender, but also makes it different from other virtual currencies, such as Facebook coin in the United States, Q coin in China and linden coin in the world's largest virtual game second life. All of these virtual currencies are closely monitored by the company that invented them, and are of little value outside these particular economies some of these virtual currencies are about the same order of magnitude as bitcoin in scale, although it is difficult to compare them in the same sense for example, the annual revenue of Facebook coin is about one billion US dollars, and the market of Q coin in 2007 was so big that the people's Bank of China intervened and called on companies to stop trading with Q coin. In the recent bubble, bitcoins traded for more than $30 million a day, and most of the time they traded more than $5 million a day. The annual turnover will be about $2 billion, so long as the bubble will not burst. strong>
we can say that real estate is a typical bubble. Many experts will argue that there is no bubble.
we can say that RMB is a typical bubble, and it has too many issues. Experts are noisy, not much
What about bitcoin? Or you can have a fight. It's a bubble or a bubble.
bubble is not a thing itself, after all, the world's major powers, especially China, issue too many banknotes, so that paper money is constantly circulating in the market, and constantly promote all kinds of "price" to measure all the ups and down. Including land, including garlic, including basic living expenses, and so on
remember that bubbles are procts of massive currency issuance, not just one thing.
however, China's timely action has led to the United States lifting stones and hitting its own feet. If it continues to develop, it may be the Americans' own wool, so now the U.S. government is becoming more and more anxious
in 2017, China banned digital currency transactions such as ICO and bitcoin, avoiding the world's largest wool shearing and a huge tragedy.
just need refers to something that is indispensable and irreplaceable
bitcoin and many other competitive currencies such as ether currency, so it is not just demand,
bubble, depends on whether the actual price is greater than its value.
bitcoin is the future currency. Bitcoin is not necessarily the currency of the future.
The market value of bitcoin is higher than that of Facebook, but the market value is just a symbolic concept. There should be more than 16 million bitcoins in the whole network. The price of a bitcoin instry should be around $48000. The total value seems to be very high, but the total value is not controlled by anyone, Compared with a large enterprise, it is obviously not comparable{ RRRRR}
in one year, it can rise to the present level. After that year, the price of bitcoin may exceed 67000, but it may fall back to 20000. This is a game between capital tycoons and financial tycoons, which is not something we ordinary retail investors can afford, But it may cost you nothing, and ordinary investors can't take the risk