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Why is Bitcoin rising so fast (why is Bitcoin rising so much)

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Why is Bitcoin rising so fast

Why is Bitcoin rising so fast? Why is Bitcoin rising so fast? Because it is driven by two main factors: Bitcoin and Fiat money. The first reason is that it exists as a payment system. Secondly, its price increase is supported by the government for digital currencies. The third reason is that the price of Bitcoin has recently exceeded the psychological resistance level of $10000 So why is Bitcoin so high? This is because the technological concept behind Bitcoin – distributed bookkeeping technology – can be applied efficiently and low-cost in decentralized networks. With the continuous development of technology, a series of issues such as blockchain, encryption algorithms, and network security are increasingly becoming concerns for people. Bitcoin is considered better than gold because it can provide a transparent and tamper resistant database. Therefore, although many people believe that Bitcoin has the potential to change the world and create wealth, many people do not understand what the term itself is. So Bitcoin has only just started operating since its inception Bitcoin originated on May 18, 2011 as a cryptocurrency asset (also known as a “virtual currency”) that verifies transactions through smart contracts. It was initially launched in the first quarter of 2009, but after years of effort, it entered a new stage after 2019. Since then, due to various complexities, Bitcoin has been unable to find reliable products or services, and it was not until the end of 2020 that mainstream applications truly emerged. This has given Bitcoin some attention, especially for those who want to invest in the encryption industry Nowadays, more and more companies and individuals are joining in to provide them with financial products and services, in order to establish a more effective ecosystem in the future. For example, PayPal and Square both launched their own Cryptocurrency exchange business in 2019, and allowed customers to deposit their crypto assets into the platform When people purchase Bitcoin, they will receive a certain amount of US dollar reserves and use these funds to purchase other tokens, thus achieving long-term investment plans. Although most investors are unwilling to do so, they can still obtain higher returns by purchasing crypto assets when the market fluctuates, and they may also use Stablecoin or other alternatives to avoid risks. The relationship between Bitcoin and fiat currency

In the past year or so, Bitcoin has experienced some significant market turbulence, including the collapse in 2017, the decline in December 2018, and the subsequent bull market.

. It has been a whole month since the beginning of 2020, but this round of sharp decline has not had a significant impact on the entire digital currency. On the contrary, between the end of 2017 and late March of this year, Bitcoin experienced two significant pullbacks, each with a magnitude of 15% and 30%, respectively. Last weekend, during the beginning of 2021, there was a significant pullback Why has Bitcoin risen so much? Since 2014, it has been the leader in the global digital currency market It was not until recently that Bitcoin entered a major bull market. Since August 2017, it has risen by over 1000%. At its peak at the end of last year, the price peaked at over $40000 But it’s just a matter of time, and now Bitcoin is being recognized, accepted, and used by more and more investors. When Bitcoin erupted again, its coin price soared to a new high. From the end of January 2020 to the present, the increase has exceeded 300%, and at the beginning of 2019, it has almost doubled, breaking the high of $100000 in mid May However, as the market continues to expand in scale and maturity, people still have doubts about whether Tecoin can continue to reach new highs The price trend from early February to the end of June this year indicates that Bitcoin, as a means of storing value, is widely used and gradually gaining public recognition, thus attracting many people’s attention and investment. Of course, many people believe that Bitcoin will become a “safe haven asset” So what is the reason why everyone is so optimistic about Bitcoin? Let’s take a look together:

1. Blockchain technology brings more transparency solutions to the financial industry 2. The number of transactions on the Bitcoin network has significantly increased and made it more secure Bitcoin miners earn more income by providing rewards without having to pay mining fees We can observe that data from many exchanges shows that although Bitcoin’s hash rate has reached its lowest level in history, its active address count is still on the rise According to CoinMarketCap data, Bitcoin’s daily total computing power is currently only about 13EH/s, far below its previous peak – in the past year, this indicator has risen to its historical limit of 17 months ago According to Coinmarketcap data, the current height of Bitcoin blocks in the entire network is 9 petaflops, which is about 200 blocks away from the low point of the year. Compared to mid 2019, this value is still very small. However, if we look at the historical average speed, there is a high probability that Bitcoin will halve every four years. Moreover, in the long run, due to the influence of factors such as oversupply and the increasing uncertainty of demand for Cryptocurrency, the “scarcity” attribute may make some new entrants into this field, which may lead to price increases, and may even trigger a new myth of wealth

Another noteworthy phenomenon is the rise of Ethereum. Ethereum 2.0 will launch smart contracts in stages, and Ethereum is expected to support ETH2.0 upgrade and expansion in the future. The Ethereum development team is exploring how to achieve scalability improvements and interoperability solutions, which include a series of optimizations, such as improving GasFee algorithms and reducing transaction costs.

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