Brother, what asset in the world is promoted by the President of the United States at meetings?
There is only cryptocurrency.
Taking Bitcoin as an example, let's talk about its value today.
Although Bitcoin has been popular for so many years, it doesn't mean many people understand Bitcoin.
Regarding Bitcoin, positions are basically divided into two factions:
1. Insiders: Bitcoin is a global currency, and its value is significant.
2. Outsiders: Bitcoin is a pyramid scheme fraud, and it will eventually crash.
As someone who has been in the mixing circle for 9 years, I must deeply discuss the value of Bitcoin and the bubble.
Before explaining Bitcoin, let's first educate on a financial common sense: bubbles.
What is a bubble? Generally believed to be when the market price is greater than the actual value, the difference is called a bubble.
Bubbles are not scary; what is scary is the lack of a mechanism to eliminate the bubble. Once the bubble becomes too large, it is easy to crash.
In fact, bubbles have always existed in the real industry and the financial industry. Bubbles in the real industry are exported to consumers, while bubbles in the financial industry are exported to retail investors, eliminating bubbles through pumping and dumping.
Okay, knowing this premise, let's talk about the value of Bitcoin.
1. The birth of Bitcoin
It can be said that those who preached Bitcoin in the early days were all attracted by the concept of world currency.
Because currently, the fiat currency systems of various countries around the world have various problems, with central banks issuing currency at will, diluting the value of fiat currency and indirectly squeezing the common people.
Okay, what to do? Bitcoin has emerged. Due to its fixed total supply, it cannot be issued in excess, so there is no need to worry about currency over-issuance depriving users of wealth.
2. Can Bitcoin replace fiat currency and become a world currency? Is it reliable?
It is essential to know the three elements of currency circulation: value stability (high volatility), portability (quite convenient), and strong liquidity (high transfer fees, weak liquidity, small acceptance population).
It is clear that Bitcoin does not currently meet the attributes of currency. Why? Because Bitcoin has been hijacked by programmers, leading to high transfer fees. If you want to understand this history, look into the battle between big and small blocks.
Moreover, as the embodiment of national will, can fiat currency allow your Bitcoin to circulate? That's unrealistic.
Some people say that Bitcoin is decentralized, how can it be banned? Naive...
Shut down the mining machines, arrest the programmers maintaining the Bitcoin network... there are many methods.
Replace fiat currency? Dream on.
3. Is Bitcoin digital gold?
It has already deviated from its original intention.
In the early days, Bitcoin was not used as a store of value, but as a circulating currency.
Regarding the narrative of digital gold, is it a capital rhetoric or something else? This pie, is it reliable? Time will tell.
4. What is the price of Bitcoin?
Currently, it seems that there is no value other than speculation.
The so-called world currency or digital gold is currently just a pie.
5. Why is Bitcoin being promoted online for 100 million?
It's simple, let the newcomers take the fall.
6. Bitcoin's value support
Speculation, community
It is undeniable that Bitcoin started with good intentions, but the reality is that it has gone astray, hijacked by certain vested interests, and is no longer the pure Bitcoin.
As for whether you should buy it, feel free... If there are friends who want to understand more deeply, comment '1' in the comment section, and I will help for free!
