1. PixelPlaygroundHome
  2. Web3 News

Why is Bitcoin extremely unstable (why does Bitcoin not depreciate)

• Web3 News • 91 views

Why is Bitcoin extremely unstable (why does Bitcoin not depreciate)

Why Bitcoin is extremely unstable? According to btcmanager, according to a research report by BitMEX Research, the price of Bitcoin has remained stable below $20000 over the past 24 hours. However, due to factors such as slow transaction speed, high costs, and difficulty in determining, price fluctuations are excessive and pose a serious threat to network security. Why is Bitcoin extremely unstable? Firstly, it is because it is a highly computer-dependent form of currency and is usually linked to fiat currency. Secondly, its decentralized and unlicensed characteristics give it a strong consensus mechanism. Finally, there is a flaw in its trustworthiness, which is the inability to achieve timely and reliable settlement of payments while maintaining their value Why does Bitcoin not depreciate? Let’s take a look at the following graph:

From a historical perspective, when prices rise, they usually experience a decline In the past two years (2012-2016), its growth rate has been much faster than people imagine: at the end of 2013, the price of Bitcoin exceeded $40000; At the beginning of 2015, it reached a historical high of $100000; At the end of 2017, it reached a high of nearly 20000 US dollars; From January to the end of March 2020, this number almost doubled; Today (May 2019); Now it’s starting to fall again. So what is causing Bitcoin to be so sluggish? First, this is because encrypted assets have proved their Scarcity. Secondly, as Cryptocurrency is a new financial product, it is not easy to copy and trade it. Finally, as investors continue to increase their investment portfolios, the demand for Bitcoin is also increasing; In addition, Bitcoin, as a feasible and effective means of storing value, has also gained more attention; Thirdly, unlike other Fiat money, Bitcoin can be used for various use cases. But for individuals who wish to place themselves above the underlying technology of blockchain, this is a huge challenge! Of course, Bitcoin is no exception, as most people still believe that it is one of the main tools most likely to become a substitute for gold in the next decade.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/22389/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/07/2023 01:13
Next 08/07/2023 01:35

Recommended articles