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Why Does Huohuobi Rise so Fast?

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Why does Huohuobi rise so fast? Bitcoin has risen from $43,000 to $58,000 in the

Why Does Huohuobi Rise so Fast?

Why does Huohuobi rise so fast? Bitcoin has risen from $43,000 to $58,000 in the past few days, a nearly 40% increase.

According to Cryptoglobe, Bitcoin has already surpassed $36,000 and is currently in a bull market. But with the continuous surge in Bitcoin’s price, will the price of this cryptocurrency continue to fluctuate? Can it break through historical highs and set new records again? This article is written by Chen Kaining, the Chief Researcher of Huobi Blockchain Research Institute.

What is the Hodl project? Since June last year, the flame-burning main chain has successfully connected to the Ethereum ecosystem. By the end of August this year, there were about 300 nodes participating in it, and more than 200 of these nodes were early contributors and supporters of the network, who are called “burn your brain” or “mining”. Due to this feature, users burn their own tokens to earn profits, while others use them as rewards for operational expenses and other activities.

In addition, it can also be seen that as of September 2018, this number has doubled to about 1 billion, with an increase of more than 50%.

Why is it said that the rocket will quickly soar in a short period of time?

1. The transaction fees on the Bitcoin network are very low.

2. The gas cost of each Bitcoin transfer is expensive.

3. The “Bitcoin halving” event has a negative impact on Bitcoin, and its price is also falling.

4. The cost of using Bitcoin for payments is lower, as Bitcoin can be used to purchase goods and services.

However, for many ordinary investors, this is not a good thing. In fact, Bitcoin has a large network capacity and fast transaction processing speed, so if you want to achieve faster transaction settlement, you need a large number of hardware wallets for storage, making the Bitcoin network increasingly crowded.

However, given this, fundamentally speaking, the “Lightning Network” is also a new form of protocol that aims to improve network efficiency, reduce transaction costs, increase block space consumption, and scalability, making it a new payment mechanism that people do not have to worry about transaction costs. On the other hand, in order to enable more applications to truly utilize technological means to achieve seamless and fast user experience, the Lightning Network not only provides a new solution but also solves the energy consumption problem of the Bitcoin network. It can effectively prevent double spending, provide better security and privacy protection, and ultimately achieve the transfer of value in the Bitcoin network.

How to view this year’s bullish market, let’s look at its fundamental analysis. Do you know that Bitcoin is currently a small bubble, and many people think it is positive? In fact, I mentioned before: “Although there are many speculative hotspots surrounding Bitcoin now, I personally do not think so.” Of course, there are also factors that may change Bitcoin’s recent trend. “I think in the short term, Bitcoin may experience a pullback,” and in fact, many analysts expect Bitcoin to have a large rebound.

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