What is the Faith of Bitcoin (Where Does the Credit of Bitcoin Come From)?

08/17/2023 16:23 • Blockchain Briefs • 68 views

What is the faith of Bitcoin, what is the faith of Bitcoin?

Many people understand it as a form of “resistance” or believe it is a decentralized currency. However, this does not mean it has no value. If there is any value, it is a very unstable thing – in extreme market conditions, people may feel fearful. But in fact, this concern is not a bad thing, because they know what mistakes they have made and what problems need to be solved. So when someone asks why Bitcoin can become a secure and feasible digital asset, most people answer, “I believe Bitcoin is just such a thing.”

Where does the credit of Bitcoin come from

In the past few months, as people have become more interested in cryptocurrencies and the value of Bitcoin continues to rise, the price of Bitcoin has skyrocketed nearly 50% from the beginning of the year to now.

But it has been proven that there are many other aspects behind this rapid growth that need to be overcome. For example, due to large market fluctuations and low trading volumes in recent months, as well as the instability of the exchange rate with the US dollar, some users have turned their attention to digital assets such as Bitcoin as a safe investment tool and payment option, allowing them to make considerable profits by investing in Bitcoin.

Despite the existence of various forms of cryptocurrency scams, such as Tether (USDT), which continue to emerge, it is still the largest cryptocurrency in the world.

According to data from CryptoCompare, more than 60,000 exchanges have held Bitcoin since late December 2019.

This means that most exchanges are custodial wallet service providers rather than banks. In addition, the funds in these exchanges are managed by large institutional investors.

However, when it comes to Bitcoin, we must make it clear: “We know that we are using our custodial solutions to store customer funds.”

Although this may not be the main issue, more people will try to use this technology to reduce risks in the next few days.

“If you want to pay their company with your cash or credit card and receive your payment in the form of their fiat currency,” said Zhao Changpeng, CEO of Bitfinex, “If I think what I am doing is to ensure that the money you receive will not be frozen, then I cannot do it.”

The original article is from bitcoinist, translated by the BluemountainLabs team. The English version is copyrighted by the original author. Please contact the editor for Chinese reposting.

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What is the Faith of Bitcoin (Where Does the Credit of Bitcoin Come From)?

Where does the credit of Bitcoin come from

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