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Why is Bitcoin still trading (Why Bitcoin hasn’t collapsed yet)

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Why is Bitcoin still trading? Editor\’s Note: This article is from William Talk

Why is Bitcoin still trading (Why Bitcoin hasnt collapsed yet)

Why is Bitcoin still trading? Editor’s Note: This article is from William Talk (ID: William1913) and written by William Chen. Authorized reproduction of Odaily Star Daily.

The reason why Bitcoin has become the focus of attention in such a short period of time is mainly because its consensus has reached a certain stage of development, and as more and more people begin to pay attention to and join this field, this consensus will continue to expand, and such a consensus will continue until recently gradually accepted and recognized by the public. Therefore, for ordinary people, the most important thing is to understand why people choose to buy Bitcoin or sell Etherium and other cryptocurrencies. But if we consider all investors as a whole, it is a bit of a misunderstanding, right? Let us briefly sort out this issue.1. Why do many people buy Bitcoin and Etherium? Because they think this technology is important, so they invest in some Bitcoins and Etherium and other digital assets. But not everyone knows how Bitcoin’s price has risen so much, they just don’t know what Bitcoin is and what it is all about.2. Why do most people want to make money when trading Bitcoin? In fact, from December last year to now, there has been almost no inflow of funds into Bitcoin and other tokens on the market, except for those so-called big players who participated themselves. The majority of people’s way of operating is the same:The first situation is to obtain profits through holding Bitcoin, rather than directly using the cash in the wallet for payment, which is a typical “borrowing” behavior. That is to say, when you use Bitcoin, your money will no longer exist in the bank account.The second situation is to withdraw money from the exchange or convert it into fiat currency for transactions. For example, if you deposit money into a Bitcoin wallet, you need to prepare some fiat currency as a transaction fee and then transfer it to another address, so that you can quickly obtain corresponding interest income without spending all the RMB in the wallet.The third situation is mainly relying on the various services and tools provided by the exchange to cash out their money easily.4. “Borrowing” refers to the fact that users can initiate an activity through a certain platform under the smart contract system on the blockchain. As long as you have a node, you can create the token and send it to others for trading.5. Why is Bitcoin still being traded? According to the data statistics of the Bitcoin Price Index, the current global circulation of Bitcoin is 1.127 million, and its total market value exceeds 10 billion US dollars based on the current market price, ranking 11th in the world. Bitcoin’s total issuance is approximately 21 million, and the initial block reward at the end of 2017 was only 6 thousand. In the 2017 halving cycle, an average of 32,000 BTCs were released each year. After the halving at the end of August 2018, 50% of the new supply in the first year, plus the newly mined 3 million bitcoins at the end of the first quarter of 2020, it is estimated that 10 million to 15 million new bitcoins will enter the market in 2019, and the total market value of the entire market may further increase by then.

Why Bitcoin hasn’t collapsed yet

According to CCN news, since November last year, the price of Bitcoin has been hovering around $11,000. And now it is consolidating below $10,000, which shows why Bitcoin has not collapsed yet?

There are two reasons: 1. The market has not skyrocketed as before; 2. Investors’ enthusiasm for digital currency investment is high; 3. Because blockchain is one of the representative technologies of decentralized technology, the possibility of Bitcoin price rising is high; 4. From a historical perspective, when a project can maximize its value, it can bring greater economic benefits; 5. Because it is a trust mechanism generated by a distributed network, it is similar to other assets and has a high degree of interoperability; 6. For the cryptocurrency field, as more and more institutions and more traditional financial institutions join in, this consensus will continue to expand.

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