Why is Bitcoin expensive

Why is Bitcoin expensive? Why is Bitcoin expensive According to a report in Forbes magazine, as Bitcoin is a digital currency (also known as a “cryptoasset”), it does not have the ability to store, transfer, or trade value. As a result, its price fluctuates greatly, because people cannot buy crypto tokens such as Bitcoin and Ethereum from other places, resulting in its price rise. But with the continuous development of blockchain technology, this trend has begun to change, and many people believe that this asset will become a viable long-term investment choice. What is Bitcoin? How does it work? As a decentralized accounting unit, Bitcoin is realized through Cryptography technology in the traditional financial system. However, these algorithms do not guarantee that all nodes are running the same thing consistently. So if everyone trusts and can use the same technology, then they won’t see Bitcoin as another thing Although many users don’t know what Bitcoin is, such as you don’t have any way to know what it is, you can easily understand that as long as you have a little interest, you can use this word. Once enough people pay attention and accept it, Bitcoin will be quickly adopted, which is called “Bitcoin” In fact, ‘mining’ is not the most common application of Bitcoin. Generally speaking, mining Bitcoin is to ensure that rewards can be obtained within a specific time period, which requires a certain amount of electricity for subsidies, which is also a very favorable performance for miners. Moreover, in order to improve efficiency and save costs, it is necessary to consume a large amount of electricity, while also paying a certain amount of energy bills to maintain network security Of course, many people also believe that Bitcoin is a good speculative hedging tool, especially those who want to cash out or sell their Bitcoin, and their funds often flow into the exchange. However, there is currently a situation in the market where most investors are unable to buy Bitcoin at all and can only earn some principal through their own efforts, while some may lose a portion of their funds in the short term. In addition, some ordinary investors may prefer to own more Bitcoin Regarding gold and Bitcoin, let’s first take a look at the advantages of Bitcoin compared to other commodities:

1. It has anti inflation characteristics 2. Highly scarce and easy to carry

3. Anonymity and Tamper resistance 4. High safety 5. Easy to mine 6. Economically efficient and convenient 7. Strong liquidity and relatively cheap The reason why Bitcoin is so popular is because its consensus mechanism and design method enable it not only to circulate in the market, but also to be used in daily payment operations

Why is Bitcoin worth?

How much is Bitcoin worth?

? What is it? How did it come in price? Why is it so expensive From an economic perspective, people believe that the concept of “inflation” is a derogatory term. If we understand this sentence as a currency or a basket of fiat currency, then they should be considered gold. When these value reserves and investment tools become exchange media, “Scarcity, divisibility, supply and other basic characteristics will make them circulate in the market” So, since the price of digital assets is determined by supply and demand, who will hold this thing? The answer is yourself, your wallet contains gold, silver, jewelry, or other collectibles. Therefore, no matter what gold key you have, it should be yours, because only in this way can wealth flow freely to the world, instead of being controlled by people as before So the question arises: why do people choose to use Bitcoin to purchase gold

1. Gold is the most well-known commodity in the world 2. The US government is vigorously supporting the development of blockchain technology 3. China has currently established an electronic invoice system based on blockchain technology

4. How will the economic form evolve in the era of “Internet plus”. As China’s economic development enters the fast lane, economic activity will show an explosive growth trend. Since 2020, China’s GDP growth has slowed down significantly, mainly due to the increasing impact of the epidemic on the economy and the sharp drop in the domestic stock market caused by Capital outflow caused by the financial crisis. This shows that the trend of Internationalization of the renminbi is getting stronger and stronger. On September 11, 2017, Fan Yifei, Vice President of the People’s Bank of China, said that the People’s Bank of China would continue to study and develop legal digital currency research and development plans and related supporting measures to promote the pace of Internationalization of the renminbi internationalization. At the same time, he also emphasized that “the Chinese yuan will not directly replace the US dollar”, which is a very important point. However, it should also be noted that policies in various countries do not allow cash to replace paper money payments, so this situation should be avoided. Secondly, it is necessary for national regulatory authorities to strengthen their control over business activities such as virtual currency trading platforms (such as Bitfinex), exchanges, and mining pools. For example, platforms such as OKEx, which was recently announced by HuoCoin, and OKCoin, jointly developed by HuoCoin Research Institute, have been launched, and more services may be launched in the future Federal Reserve Chairman Powell stated that the Federal Reserve is committed to addressing potential issues and will conduct long-term stable research, and has recently released a series of discussion reports on CBDC, which mentions Libra and its governance mechanisms. In addition, the Federal Reserve also pointed out that in the current environment, more fiscal stimulus plans can be considered to address the impact of economic recovery.