Why Bitcoin cannot surpass (why does Bitcoin not depreciate)

Why Bitcoin Cannot Exceed Editor’s note: This article is from IDlianneican and is reprinted by the Daily Planet with authorization The success of Bitcoin proves its feasibility, security, and practicality. However, unlike other Cryptocurrency, Bitcoin is not a fully decentralized and unlicensed network protocol. Its main goal is to provide secure and reliable technology and allow people to use the blockchain for point-to-point payment transactions. Between December 2017 and early May 2018, Bitcoin has risen more than 100 times. However, as prices rise, many people see it as a “speculative” thing: “If someone really believes that Bitcoin will continue to develop,” they say, “I don’t think we should see Bitcoin as a means of storing value.” However, in reality, this statement has not been widely adopted. Bitcoin is an economy highly reliant on government power and capitalist institutions, despite possessing significant wealth. Bitcoin does not have any fundamental or technological foundation to support its ability as a value storage method, nor does it have a financial infrastructure like gold to support its value proposition. Bitcoin cannot surpass Bitcoin, “said an anonymous Twitter user.” Can’t you get anything from Bitcoin? “The netizen pointed out that he hopes to improve the working environment of Bitcoin by using some tools, so that Bitcoin can become a future investment choice Bitcoin is a world controlled by computer programs, which eliminates the need for traditional forms such as banks. How does it work? Due to the lack of economic incentives, more methods are necessary to maintain the status quo, as only the simplest methods can solve these problems – without relying on traditional business models. The essence of Bitcoin is not money, but assets; It only has Scarcity and immutability. On the contrary, it is the foundation of the digital world. Although most Bitcoins are built on their networks and almost certainly have various use cases, in some cases, they still struggle to extend to all existing use cases, such as email senders, instant messaging services, and cloud based services. The most popular Cryptocurrency in the market today is Bitcoin (BTC). Why can’t Bitcoin surpass Bitcoin? According to CoinMarketCap data, as of the end of March 2020, the world’s 13th largest cryptocurrency market is driven by Bitcoin, accounting for about 70% of the global cryptocurrency market value. Bitcoin is still in its early stages: it has not yet surpassed its historical high of $1 trillion; At the beginning of 2021 alone, it grew to over $10 trillion; Six months have passed since then; So far this year, its price has been hovering below $1000. The price trend of Bitcoin usually follows two factors: 1. 10% of the total supply of miners’ income (per coin); 2. 15% reward for blocks excavated in February; 4. The average daily output of new tokens issued in the first quarter is 2.5 billion new coins; 5. Reduce production by half within 10 years (approximately 30 trillion RMB); 6. The number of participants in the Bitcoin ecosystem Why does Bitcoin not depreciate? On January 12, 2018, the U.S. President’s Financial Market Working Group (PWG) released a report outlining the development trend of Cryptocurrency and blockchain industries in 2020. This 75 page document shows that “despite the recent significant increase in Bitcoin prices, there has never been a significant decline in Bitcoin prices”, and adds that “due to many factors, the current market situation is not good.” According to the agency’s data, the price of Bitcoin in the first quarter of 2019 was around $29000; By the end of 2021, this figure is expected to reach $34000. If Bitcoin does not rise or fall as sharply as it does now, it will experience another huge fluctuation – that is, nothing can replace major commodities such as gold or silver, so its value will decline over time. “

So the problem is: Since 2009, Bitcoin has been steadily growing. However, in the past few years, we have seen more and more traditional companies entering this field, and they are using this method to attract new investors. However, although so many people have already purchased these assets, they have little practical use in the short term and may even be used for speculative trading, so they have not truly changed the world economy. In other words, Bitcoin is an emerging technology: decentralized, borderless, and non sovereign payment systems Bitcoin has relatively low correlation with some other assets, as only a small portion of its market value comes from government supported bonds. For example, Stablecoin such as Ripple Coin and Ethereum are issued by the central bank, which can hedge inflation risks and make Bitcoin more flexible and divisible. (Bitcoinist)