What is Bitcoin tied to? (Bitcoin associated with what)

What is Bitcoin tied to? What is BTC tied to? What is Bitcoin tied to following?

There has always been controversy regarding the volatility between assets and prices in the traditional financial sector. For example, the rise in US Treasury yields (negative bond yields), the decline in gold (expansion of precious metal decline), and the stock market’s surge (stock and cryptocurrency markets crashing), which makes it difficult for investors to make investment choices or hold assets and will only speculate on assets. Therefore, because many people believe that these events will lead to inflation, economic chaos, or even death, they are seen as a terrifying choice. However, as people begin to realize these risks and fundamentally change global monetary policies, this view has changed, as most countries’ fiat savings are being transferred between bank accounts denominated in US dollars – which is why Bitcoin is a means of storing value. Nevertheless, Bitcoin still provides a secure and efficient way to protect their wealth while maintaining its hedging characteristics. However, it still relies on other factors such as supply limit or government regulation. The price trend of Bitcoin also shows a similar situation – when Bitcoin’s total market value accounts for about 5% of the entire market, its value is still relatively low.

According to Skew’s data, Bitcoin has been declining since January 2020 and is currently at the bottom of a sideways trend. But as BitMEX CEO Arthur Hayes said, “The recent significant drop in prices over the past few weeks may have reasons,” he added, “I believe this is another sign that Bitcoin may continue to rise. I doubt that we should continue to pay attention to this indicator.” Bitcoin is one of the ways to achieve value stability through derivatives.

In order to make cryptocurrencies more attractive, some well-known exchanges have announced the launch of futures contracts, including Bitstamp and FTX, which allow customers to short or take long/short positions with Bitcoin. BitMEX co-founder and CEO Guy Hirsch said, “This is a very important moment for those seeking more information. If we want to get higher demand, then they must be more experienced than the spot market and be able to easily take advantage of liquidity and cost advantages. On the other hand, if they want to gain a larger market share, they need to increase capital to meet their own needs. Now, there is a surge in institutional demand for digital assets. Bitcoin has great future potential,” he claimed. “If there is nothing associated with traditional currencies, then you won’t have anything. You can use your money to buy more things like gold bars, diamonds, real estate, and other types of things. If you want to know this, you don’t need to do this. Bitcoin is not controlled by a central securities depository. Bitcoin is a decentralized network system.”

The original source of this article is ambcrypto.

What is Bitcoin tied to?

Editor’s note: This article comes from, and has been authorized to be reposted by, Odaily Star Daily Planet.

Is there a correlation between Bitcoin and the development of the blockchain industry? We can analyze the relationship between these two types of digital assets from two perspectives.

1. Cryptocurrencies and blockchain are interconnected. If traditional financial institutions are researching blockchain technology and other new products in the cryptocurrency field, then these companies will focus on blockchain.

In the past year (June 2019), as people’s interest in the cryptocurrency market continues to grow, discussions around the industry also become more intense. However, questions related to Bitcoin or blockchain are still relatively small, but there is indeed some relevance. For example, Bitcoin’s market capitalization exceeds $1 trillion; Bitcoin’s market value is about $2 trillion; Ethereum’s total value is currently close to $5 trillion, three times more than Bitcoin; and many projects are focused on DeFi applications. Although these protocols are built on decentralized networks, these protocols often take longer to achieve interoperability development during the early stages of Bitcoin’s development.

Therefore, Bitcoin and other cryptocurrencies have attracted attention and have a significant impact because of the speed at which their prices are rising. At the same time, it has become a new store of wealth. So what cryptocurrencies can be considered as an investment choice?

1) The relationship between Bitcoin and gold. Since Bitcoin does not belong to any specific investment category, there is no foundation that directly buys this currency. In fact, most people may not fully believe that it can be used as a payment tool or portfolio management tool like gold, but they use it more as an alternative for long-term holding. On the other hand, Bitcoin itself doesn’t have much connotation.

2) The use of Bitcoin Cash and Ethereum and other cryptocurrencies. Although Bitcoin’s price fluctuates greatly, it is unrelated to the fundamentals of bitcoin.

3) Cryptocurrencies are not real commodities. Instead, they are digital tokens supported by government-issued fiat currencies, such as the US dollar. When you buy a cryptocurrency, it usually contains a large number of transaction records in your wallet.

4) The majority of users in the crypto community are looking for ways to help Bitcoin increase income. Bitcoin Cash and Ethereum are among the world’s largest stablecoins, accounting for about 10% of the total circulation. In addition, this situation has changed since 2017.