1. PixelPlaygroundHome
  2. Blockchain Briefs

What is the value of Bitcoin itself? (What is the actual use of Bitcoin?)

• Blockchain Briefs • 73 views

What is the value of Bitcoin itself? According to a report by CryptoGlobe, the

What is the value of Bitcoin itself? (What is the actual use of Bitcoin?)

What is the value of Bitcoin itself? According to a report by CryptoGlobe, the value of Bitcoin mainly comes from its network security. Although cryptocurrency is unrelated to other assets in many aspects, such as gold and oil, Bitcoin is a good investment form. Due to its unique nature and immutability, it has a certain degree of price volatility and scarcity. In addition, research reports indicate that the current price of Bitcoin is around $10,000. Therefore, if we want Bitcoin to reach $20,000, we must consider the value of Bitcoin itself.

What is the actual use of Bitcoin?

Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com) and is authorized to be reproduced by Odaily Star Daily.

Recently, the price of Bitcoin has soared by more than 200%, but what many people haven’t noticed is that this is just the beginning. In the past few years, Bitcoin has proven to be a store of value. Like many other assets, it has high speculation and strong hedging ability against inflation. Although people think that Bitcoin is an alternative to gold, it is still very popular in some countries and is still in its early stages. However, the situation has changed now, and people are paying more and more attention to this issue, especially in the United States.

So what benefits the cryptocurrency market? Let’s find out. What is Bitcoin? In fact, Bitcoin is a decentralized electronic cash system maintained and controlled by a group of independent running nodes. It is a way to complete transactions and obtain rewards through a network, and has functions such as promoting economic activities, reducing the cost of financial services, and preventing hacker invasions. Its working principle is similar to “smart contracts”.

Users can delegate their tokens to another wallet to receive or accept funds. Then the wallet uses a new payment method called bitcoin for peer-to-peer transfers, eliminating intermediaries such as senders, recipients, and other participants.

To verify the identity of these accounts, they must be able to verify the security of their passwords and private keys. If they don’t do this, they may have their own bitcoins and encrypted assets. Therefore, when someone makes a payment to a certain address, they usually receive a small amount of bitcoins as a reward.

The maximum supply of Bitcoin is 21 million coins, and each Bitcoin has a 10-year unlocking period, which will be released within about one year; and only a few Bitcoin holders are willing to sell their BTC every day. So you can check all these Bitcoin balances through a website. How to buy Bitcoin? According to data from CoinMarketCap, as of the end of the first quarter of 2019, the market value of Bitcoin has exceeded $400 million. The total revenue in 2018 reached $16.57 billion. In addition, the total profit in the second quarter of 2019 reached $5.16 billion. In the first 7 months of 2019, the average weekly sales were about $1.07 billion. Currently, this number is close to $5 billion, an increase of 128% from the end of 2017. With institutional investors flocking to Bitcoin, Bitcoin is profiting from the initial portfolio.

Why invest in Bitcoin? Because it can be used as an option for long-term value storage. For Bitcoin, this is a basic income, not any form of economic expenditure. However, if you want to buy a real Bitcoin, you need to consider the following factors: 1. Do you trust third-party custody providers? 2. Is it necessary to hold your Bitcoin or assets? 3. Can you ensure that you have a certain type of wallet? If we know who owns your private key, we can access which wallets or exchanges, or where we can store your information.

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/24672/

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 08/17/2023 22:28
Next 08/17/2023 22:51

Recommended articles