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Why does Bitcoin grow so tall (why does Bitcoin rise so fast)

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Why does Bitcoin grow so tall (why does Bitcoin rise so fast)

Why Bitcoin is so tall Editor’s note: This article is from the vernacular blockchain (ID: hellobtc), written by Sanli, and reprinted by the Daily Planet with authorization Bitcoin has grown from December last year to its 14th block today, which means we can quickly trade or store data without changing the fundamentals. So what is Bitcoin? Why does Bitcoin grow so tall? There have been continuous reports on this issue in the past few years

According to the latest report of CoinMetrics, although the Cryptocurrency market has problems such as the “Ponzi scheme”, Bitcoin still maintains its value and Scarcity. (Note: The total market value of the top ten digital assets currently ranks at approximately $13 trillion, accounting for nearly 70% of the entire encryption market.) One reason why Bitcoin has grown is its consensus mechanism – halving every four years; If there are not enough miners to support other nodes in the network, it is impossible to generate new things because all these new coins are produced through mining. As time passes, Bitcoin will become increasingly difficult to use, and this situation may also lead to a decrease in Bitcoin prices Although the underlying technology of Bitcoin is still very simple, not everyone can understand it, so most people still cannot believe the technology behind it, so it is easy to overlook this point. However, Bitcoin is a peer-to-peer Electronic cash system that can communicate with each other, be verified and be secure. It is the world’s largest payment system based on computer systems, with more than 300 million users Due to the network effect of Bitcoin, it has become a highly efficient and low-cost application, giving it many unique features. For example, agreements such as Ethereum allow participants to easily send and receive payments and convert Fiat money into legal tender. When you purchase something with Bitcoin, a specific wallet address will transfer money to you. Is that why some people think this is money? Actually, this is a great example: if you want any party in the world to have access to real-time funds and interact with you, and receive funds immediately In addition, some people hope to help solve complex problems by creating a smart contract or creating their own applications, such as Bitcoin. Bitcoin was initially used for decentralized exchanges, dark web markets, and other purposes. However, due to their different design purposes, they can only be maintained and managed by a few independent servers running by organizations, rather than being controlled by a single entity However, in order to eliminate these risks and difficulties, Bitcoin adopts a hybrid architecture. The main feature of Bitcoin is its distributed structure, where two entities can exchange Bitcoin with each other every 10 minutes or so. Usually, two parties need to negotiate and decide who should start transferring funds first, in order to avoid unnecessary confusion caused by forking

Why did Bitcoin rise so fast

Editor’s Note: This article is from Wind and fire wheels Community (ID: FHBT18), written by Peipei, and reproduced by Odaily Planet Daily with authorization Hello everyone, I am Pepe, a Bitcoin buddy. This morning, the market suddenly surged by 2 points, experiencing twists and turns. I think it was a sharp drop yesterday, and within a week, the price reached above $10500; Then it started to rise again around 7 pm, and currently it has exceeded 10000 yuan per coin. At this point, I think it’s a bit unreasonable, but I can still keep an eye on the changes and trends in this market In fact, it’s quite interesting to talk about the current rise. Previously, we talked about a news that in November, Gray Investment purchased about 1 million Bitcoins again, but I don’t know if anyone bought them wrong. At that time, the price of Bitcoin was still hovering around $10000, so this time it increased slightly – about 20 times So why have you been so fast these past two days? The reason is simple: firstly, the grayscale Bitcoin Trust Fund has been officially launched; Second, because institutional investors are increasingly pouring into this type of Cryptocurrency, the demand of some new and old users for this currency is also increasing, so many new users have set their sights on this field. After all, no product can be overestimated like Bitcoin before, and now digital assets are constantly breaking new historical highs, such as Bitcoin, Ethereum and other mainstream digital assets whose market value has exceeded 10 billion dollars, And less than 1% of these newly added addresses are increased through this method; Thirdly, grayscale investment has been continuously purchasing BTC and ETH If we push forward further, it is because Bitcoin itself has a large demand, and as more and more traditional capital flows to Bitcoin, people gradually accept its existence as a means of storing value; In addition, many people think that in the 2017 Bitcoin bull market, many people think that it is a Ponzi scheme, but the fact proves that it is not

Secondly, from the beginning of this year to the end of this year, the price of Bitcoin has reached about 68000 dollars. Some friends even think that this is a “foam”, but it did not happen, but the development track of Bitcoin has changed since its birth After December 28th last year, just over the past weekend, there were almost all kinds of counterfeit coins appearing in the entire market and showing quite good growth trends. The most obvious one was XRP, which had a total market value of nearly 30 billion US dollars. Its tokens rose by over 300% in just two days, and it is also the most widely circulated token on the market, Of course, a few project parties also stated that their XRP holdings are not air currency, garbage currency, or counterfeit currency

In the next month or two, there will be a new hotspot in Bitcoin, namely Litecoin Although Bitcoin has seen a significant decline recently, overall it seems to be a positive signal. Below, I will use three more vivid data examples to analyze the current situation,

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