What does the decline of digital currency mean
bitcoin bulls often mention that the scarcity value of this cryptocurrency is the main reason for its continued rise. Bitcoin is similar to gold to some extent. The growth of its supply is extremely slow, and it is still slowing down. Its total supply will only reach 21 million
with the increasing interest of institutional investors and retail investors in bitcoin, global exchanges such as the Chicago Board of options (CBOE) have launched bitcoin futures contracts. This is likely to encourage more institutional investors to invest in bitcoin, while at the same time further curbing the price volatility of bitcoin
this much anticipated bitcoin futures trading has been launched on the Chicago Board of options exchange, which represents a significant step in the legalization of cryptocurrency. Futures is a derivative / financial instrument, which can force dealers to buy and sell an asset at a specific time and price
because the value growth of online gold is different from other digital currencies, it is mainly e to the value superposition of more and more businesses, rather than the price growth brought by interpersonal transactions. Because of the value-added property of online gold, businesses and consumers are more willing to accept it. Such a virtuous circle is the main factor to promote the net gold to rise but not fall. Since the price of online gold is determined by market transactions, it will not be controlled by the market like stocks,
From the stable currency issued by banks, to the stable currency issued by Internet companies, to the present stable currency, all these mean that the future digital legal currency will come to people's vision and officially enter the stage of history, which will be initiated by central banks. Similar to the current public chains with different architectures, the digital currency of central banks will also use different technologies suitable for their national conditions. The digital currency of the central bank will explode in a certain period of time, which will make global trade more convenient, asset transfer will be extremely fast, and even drive the further development and innovation of traditional instries< but will bitcoin, the originator of digital currency, be replaced by central bank digital currency? Here mainly from the following aspects of analysis
3. Payment function and there will be certain restrictions on the payment function of the central bank's digital currency. If the comprehensive liberalization policy is implemented, it means that the exchange of legal currencies between countries is less regulated, so it may also cause large-scale capital loss, Therefore, the payment function of the central bank's digital currency may only be limited to specific regions and countries and cannot be spread out at will, which will also have an impact on its function
because bitcoin is a free digital currency, there are no restrictions on its use. Anyone can use bitcoin for value storage , which also facilitates more people who need money exchange. However, e to the high degree of freedom of bitcoin, the exchange rate between bitcoin and legal currency has certain volatility, As a result, the behavior of currency speculation also occurs. In different periods, legal currency and digital currency have different exchange rates. Therefore, bitcoin can only be used as a payment type digital currency in the short term, and can only be used as an investment proct in the long term. The two attributes of investment and payment are opposite to each other, This will continue for a long time to come
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it is suggested to pay more attention to the mainstream digital currencies such as bitcoin, Leyte coin and dogcoin, as well as the application-oriented digital currencies in China.
it reflects an indicator calculated according to the commodity and labor prices related to residents' life. Its function is to quantify the level of inflation
as a fixed price index, CPI does not reflect the improvement or decline of commodity quality, and does not consider new procts. It only considers the prices of some goods and services related to residents' life
when the CPI increases too much, it indicates that the living cost of residents is higher than before. If your income does not increase, your income will actually decrease compared with the social environment. Take a simple example: last year, you got 100 yuan but didn't spend it. This year, the CPI has increased by 4.6%, so you can only buy goods and services with 100 yuan, which is equivalent to 95.4 yuan last year
therefore, the sharp rise of CPI, the most popular term "price rise", is not welcome. If the CPI increases too much, inflation will become an unstable factor in the national economy, and the central bank will have the risk of tightening monetary and fiscal policies, which will lead to an uncertain economic outlook.
no matter how old its value is, gold is not as special as people think. Gold is just a commodity that follows the rules of supply and demand. But unlike wheat and oil, which can be eaten and used as fuel, gold has no intrinsic value other than the value given by the market
the recent decline in gold is e to the uncertainty of the implementation time of the Federal Reserve's quantitative easing policy, which makes the funds previously expected for quantitative easing come out of gold
the other is the continuous improvement of economy and proctivity
the last is deflation
the US Federal Reserve has a strong dollar attitude, the number of jobless claims has declined, the economic recovery is considerable, and the decline of manufacturing instry in the euro area is worrying. On the whole, the news is bad for gold. The market seeks to avoid US dollar risks, pushing up the US dollar and further suppressing the trend of gold and silver