What determines the price of virtual currency

1. The value of a digital currency can be measured by the following methods:
1. The market depth of a digital currency, such as bitcoin and Leyte, is very deep
2. The application scenarios of a digital currency, for example, the digital currency on the coin Ying China platform will correspond to the corresponding physical assets, which are regarded as the digital currency of assets
3. The social recognition of a digital currency, bitcoin, has been widely recognized in the world.

2. Theoretically, the price of virtual currency is determined by the market. When people have a better psychological expectation of a virtual currency, the supply will increase and the price of the currency will rise; When people do not hope for a virtual currency, the demand for the currency will decrease, and the price will also fall
however, in China, the price of virtual currency is also affected by policies to a certain extent. Recently, the central bank has tightened its attitude towards digital currency, and the price of bitcoin and other digital currencies has fallen sharply. The digital currency of PBoC is less affected, probably because PBoC has the support of real assets.

3. Bitcoin has existed as a digital currency for ten years. With the continuous improvement of people's consensus and the constant quantity, the value of bitcoin has a huge room for increase, which is far beyond the scope of simple digital currency. Therefore, it seems reasonable to define bitcoin as digital gold in the future, This is also agreed by people who have a consensus on bitcoin

bitcoin is a digital currency, which does not rely on real money or financial procts. Therefore, it is difficult to predict the price trend of bitcoin by summing up the rules from the development and changes of real money

unlike other mature financial procts, bitcoin instry is still in its infancy, and there will be many changes; Secondly, bitcoin is decentralized. Its total supply-demand relationship is related to the global market. It can be held or transferred in the world without approval. Therefore, fluctuations from anywhere in the world will affect the current total supply-demand relationship

the rapid development of bitcoin in the past ten years shows a truth: a good project will certainly attract market attention, because it is a trend. No matter you are pushing, don't go against the trend. If you ignore today, you won't be able to rise tomorrow

4. Bitcoin is valuable because it is useful as a form of currency. Bitcoin has the mathematical characteristics of money (persistence, portability, interchangeability, scarcity, separability and identifiability) rather than relying on physical characteristics (such as gold and silver) or the trust of central authorities (such as fiat money). In short, bitcoin is backed by mathematics. With these characteristics, a form of money to have value requires trust and use. In contrast, this can be reflected in its growing base of users, businesses and start-ups. Like all currencies, the value of bitcoin comes directly from people who are willing to accept it as a means of payment, which is the only source In China, it is defined as a special Internet commodity by the central bank
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.

5. It's divided into price and value
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.

6. Bitcoin is a digital currency, which does not rely on real money or financial procts. Therefore, it is difficult to predict the price trend of bitcoin from the development and change of physical objects
unlike other mature financial procts, bitcoin instry is still in its infancy, and there will be many changes in it; Secondly, bitcoin is decentralized. Its total supply-demand relationship is related to the global market. It can be held or transferred in the world without approval. Therefore, fluctuations from anywhere in the world will affect the current total supply-demand relationship.

7. Policy has a great influence on the price of virtual currency

They can cause short-term price fluctuations

leeks, there are thousands of leeks on the "currency exchange"< br />

8.

It is determined by the time value and labor value of money

The exchange rate is the price of one currency expressed in another. Without the influence of other non market factors, the exchange rate should follow the general law of commodity market, that is, it is determined by the supply and demand of this kind of money caused by economic activities. Price is a reflection of value, which usually fluctuates around value

in the long run, under the condition of near complete market economy, price and value are basically the same. Therefore, the theory of monetary value (from the perspective of exchange rate generation mechanism to see the prospect of RMB appreciation) discusses the long-term exchange rate generation mechanism under the floating exchange rate system, that is, from the perspective of how the value of one currency is reflected by another currency

Currency is the medium between proction and consumption. People who provide labor services to obtain money have the right to demand corresponding amount of relative labor. Therefore, currency is based on the prior service and used to cancel the claim for goods, or currency is based on the prior service and used to request the relative service certificate

The value of money is determined by the value of the commodity which can be obtained by the claim or certificate. The purchasing power of a unit of money is determined by the ratio of the total amount of goods of the whole society to the total amount of money purchased