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Why is Bitcoin so expensive (why is Bitcoin so valuable)

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Why Bitcoin is so expensive

Why Bitcoin is so expensive Bitcoin is currently the most popular Cryptocurrency, with more than 10000 different digital assets worldwide. But because of its Scarcity, it has been difficult for the public to understand and use. Why is Bitcoin so expensive In the decade from 2008 to 2020 (2009-2021), there were only approximately 21 million Bitcoins in the world, but this is only a small number. Although many people believe that it is one of the main commodities such as gold or silver, in fact, most people attribute it to its value storage method of “decentralization” With the increasing demand for digital finance from more and more institutional investors, people see Bitcoin as a safe and feasible alternative and begin to accept it as an investment method. Therefore, these investors also hope to gain more profits and cheaper prices by participating in the market

However, various factors related to this make some experts reluctant to focus on Bitcoin – they point out that “if Bitcoin becomes sufficiently decentralized, then they will have better advantages than traditional currencies.”

Although nothing can prevent people from incorporating BTC into their existing portfolios and may make it an effective Medium of exchange, in the past few years, More and more people are turning to Bitcoin as a medium of exchange, as this method has proven that even purely speculative markets can provide long-term stable growth prospects According to CoinMarketCap data, as of the end of 2019, the market value of Bitcoin reached nearly $4 billion. As of December 31, last year, the term “digital dollars” had surpassed Facebook and ranked as the largest payment network The reason why Bitcoin can develop at this speed is because Bitcoin is a new form of value storage. Bitcoin can not only be used to send payments, but also to store wealth, such as loans and government supported stocks; In addition, there are other options such as statutory deposit certificates and cash. Bitcoin also allows users to hold Bitcoin and earn interest, just like gold. When you purchase a Bitcoin, you can withdraw another Bitcoin at any time. If you want Bitcoin to rise below $100000, you need to spend thousands of dollars to cash it, which means that Bitcoin can circulate freely anywhere in the world while still being kept in your wallet The original text is sourced from Bitcoinist and compiled by the BluecountainLabs team. The English copyright belongs to the original author. For Chinese reprints, please contact the editor Why is Bitcoin so valuable? Why is it so important? Next, let Planet Jun (WeChat: o-daily) and everyone analyze together Firstly, let’s take a look at the history of Bitcoin. In the five years from 2009 to 2013, Bitcoin, the first currency created by Satoshi Nakamoto, proved its legitimacy with a mathematical method. After January 1, 2010, this number reached an all-time high, which means that Satoshi Nakamoto created the first generation of gold, silver and other precious metal assets and many other commodities. It was not until early 2015 that Bitcoin truly began to circulate. That is to say, when Bitcoin was born, there were only more than 1000 different Cryptocurrency. Therefore, if one million Cryptocurrency have emerged in the past 10 years and have not been used by anyone, the price of Bitcoin is far higher than the total in 2017

But the problem is not whether anyone will buy these Cryptocurrency, but because they are anonymous or have a specific address, and this address is also untraceable, tamperable and verifiable, so people can send these digital currencies to the specified money package address for transactions at will Of course, this is a good thing, but we still need to be a bit cautious about what may happen in the future. Secondly, don’t forget that every time you see the price fluctuation of something, Selling climax will occur and may lead to losses. Another noteworthy phenomenon is that as more and more people are interested in various blockchain technology applications, they all hope to solve the pain in this field through smart contracts. For example, after Facebook announced plans to establish a new blockchain based payment system, Libra, the global financial services market plummeted, while the results of the US presidential election were unexpectedly disappointing. Finally, for investors, it is important to take the first step towards safe investment no matter what. (Note: In addition to supervision, all exchanges involving digital dollars and other legal currency Stablecoin transactions will face high fees and operating costs to cope with such risks).

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