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Reasons for the rise of bitcoin in 2019

Publish: 2021-05-25 19:20:43
1. bitcoin is not issued by specific currency institutions, it is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of money circulation. The decentralized nature and algorithm of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin through mass proction. The design based on cryptography can make bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcity
on January 8, 2021, the price of bitcoin exceeded $40000

warm tips:
1. The above explanations are for reference only, without any suggestions
2. Before investing, it is recommended that you first understand the risks existing in the project, and clearly understand the investors, investment institutions, chain activity and other information of the project, rather than blindly investing or mistakenly entering the capital market. Investment is risky, so we should be cautious when entering the market
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2.

Now the price of bitcoin is hovering around $37800. For the price trend of bitcoin in 2019, cailu.com will discuss with you

1. First of all, we know that bitcoin is a virtual digital currency, which is an upgraded proct on the blockchain. At present, the transaction volume of bitcoin is the largest among the digital currencies. In the development of bitcoin, the speed is not very fast, the infrastructure is complete, and there are good regulatory policies. The price in 2019 can be expected

2. The attitude of the regulatory authorities: bitcoin is not protected by law in our country at present. It is a trading proct imported from or abroad. At present, it is still a proct that needs to be investigated in our country. The regulatory authorities should make corresponding policies on how the investigation results are suitable for our domestic transactions, and we can expect the price rise in the later period

3. For investors, to enter the digital money market is to gain profits from this market, but bitcoin is a very risky transaction. In addition, bitcoin has no limit on the rise and fall, and the risk is uncontrollable. According to the 28 law of the investment market, only a few people can make profits

generally speaking, we can look forward to bitcoin in 2019. At present, we can look forward to the $4000 mark. If we can break through it, the price may go up. Of course, we can't know what kind of news will appear in the future. If there is good news, the price of bitcoin will rise in 2019

3. In the first half of the year, it didn't go up much. It was just that the black swan caused the capital to escape from danger. Then it hit the bottom and rebounded. With the return of the main force, this can't be regarded as growth. So the second half of the year is the real time for growth. I think I can buy it at any time now, but the exchange should choose carefully. The domestic reliable one is okex, which is relatively safe, and the buying speed of bitcoin is also very fast, Basically, it will arrive in one minute.
4.

Bitcoin price accelerated to rise at the same time, there has been a more rapid decline in the callback

according to the price of coindesk on bitcoin news and information network, on January 11, the price of bitcoin fell to about US $30305, down 27.78% from the highest price of US $41962 in history. In other words, the price of bitcoin fell from $40000 to $30305 in just over a day. Before that, bitcoin took six days to rise from $30000 to $40000

from the macro-economic environment, Yu Jianing believes that the correction on January 11 can be regarded as a hedging measure taken by overseas mainstream investment institutions. He believes that one of the reasons for bitcoin's rise this year is the continued decline of the dollar index. At present, Biden's government is coming to power, "bad is good", the dollar may rebound, global commodity assets have a significant correction, and the digital asset market will adjust accordingly

in recent days, the US dollar index has risen significantly. As of press release, the US dollar index is about 90.49, down 0.06 from the previous day and up 1.16% from the closing price of 89.42 on January 6

he also pointed out that many bitcoin miners choose to sell at relatively high prices. According to cq.live, the miner's position index (MPI) has reached its highest level this year. The MPI index is higher than 2, which indicates that miners tend to sell bitcoin after mining; If MPI is negative, it indicates that they are optimistic about the short-term trend and choose to hoard bitcoin. At present, the value is about 5.26, indicating that the miners are selling bitcoin on the over-the-counter market or exchange. In addition, bytetree data also shows that in the past week, bitcoin miners g out 6894 bitcoins, but sold 10047 bitcoins, which means that the miners sold nearly 3153 bitcoins in stock

Yu Jianing mentioned that another reason for the decline is the website downtime of the largest compliance exchange in the United States, such as coinbase, after the market fluctuated violently, which delayed the trading of users, and many buying orders could not be traded normally, which also led to the bitcoin price on the website far lower than the market price, further aggravating the market panic

"e to the failure of the coinbase system, we could only sell but not hang up the bill yesterday, and the whole trading world order was destroyed." A coin circle employee also said

regulatory warning bitcoin volatility risk

it is worth noting that the recent ups and downs of bitcoin has also aroused the vigilance of regulatory authorities in various countries

On January 12, the New Zealand financial market authority (FMA) warned new Zealanders to invest in cryptocurrency prudently, according to the New Zealand Herald

"new Zealanders who are considering buying cryptocurrencies such as bitcoin should realize that they are high-risk and highly volatile assets," a spokesman for the New Zealand Financial Markets Authority said. "Cryptocurrencies are not regulated in New Zealand and are often used by fraudsters and hackers."

According to the times on January 9, HSBC has decided to stop providing cryptocurrency trading services to customers in the UK, including prohibiting customers from depositing funds into HSBC from their digital wallets. At the same time, many other UK banks have banned customers from using credit cards to buy digital currencies such as bitcoin

"the virtual currency represented by stable currency is facing more and more complicated compliance risks. As more and more economic activities migrate to the blockchain, the instry is facing great compliance pressure. The circulation of stable currencies such as usdt will grow explosively in 2020, reaching a record high. Behind this, part of the use demand comes from the normal transactions in compliance, but there are also black and gray demands for money laundering, illegal financing and other problems. In the future, the blockchain instry will face more and more compliance challenges. " Yu said

he pointed out that according to the report on anti money laundering of virtual currency released by peckshield in 2020, the value of unregulated outbound virtual currency reached US $17.5 billion in 2020, an increase of 51% compared with that in 2019, and it is still growing rapidly. The number of fraud cases involving virtual currency continued to rise to 151, an increase of 655% over 2019

Yu Jianing said: "since the second half of 2020, fraud, attack, extortion, gambling and other assets, as well as money laundering, run points and other gray assets, have begun to turn into virtual currency money laundering. The number of extortion cases has increased rapidly, and the situation of virtual currency anti money laundering is grim. In 2021, it is necessary for the blockchain and digital assets instry to adopt a more strict and prudent KYC (know your customer) review mechanism, More stringent anti money laundering standards will be implemented. "

5. No, because only a small number of people believe that if the number of users does not grow, the scam will slowly break down
bitcoin is a virtual currency system developed by an organization that dare not disclose its identity. Also known as "air currency"
this kind of currency is worthless. We should rely on pyramid selling and speculation to improve the psychological value among a small number of people, then buy and sell among these people, and then continue to rely on pyramid selling to expand the population
this is a financial fraud, much like the Ponzi scheme
as long as people who are not mentally retarded, they should be aware that this is a fraud
it's just that people who speculate in currency think that they won't be the last one to take over the dish.
6.

Bitcoin's surge is just a short-term phenomenon. In the past, bitcoin was really hot, which made many people crazy, but its hot period has passed. At present, the sudden rise of bitcoin is obviously a kind of hype by some people who hold a lot of bitcoin. Their purpose is also very pure, through this way to attract more retail investors to invest, and then they start to make crazy profits. Don't be attracted by the heat

in fact, when it comes to bitcoin, many people may not know what it is, but the only thing people value is that it can make money, which reflects the phenomenon that people blindly follow the trend of investment. The risk of investment market is big, but the profit is also big, which requires our investors to recognize the hero. Let your own investment knowledge enrich, so that you know investment like the palm of your hand, and you won't be blind

the popularity of bitcoin will soon disappear, and it must not be speculated and invested by some people

the era of bull market has long passed, so investment should be cautious

7. It can't be simply attributed to the exchange. Sometimes there are sudden short-term fluctuations, and the exchange does participate. But the main topic is about the monthly time span, which is difficult for the exchange to control. It is more the result of the joint operation of hot money and large institutions. However, the sharp decline of the overall currency value can't be separated from the basic economic principle: the relationship between supply and demand, This is beyond anyone's control
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10.

because the total number of bitcoin is only 21 million, this year the number of bitcoin has reached 18 million, and the remaining number is not much. , in addition, many technology giants have expressed their views on bitcoin, such as musk, who said that Tesla may support bitcoin payment in the future, which will also make the bitcoin market more hot, Prices are also climbing

decentralized currency

bitcoin can stand out among a number of virtual currencies and achieve such a high price. One of the biggest characteristics is that bitcoin is a decentralized currency. Unlike our current centralized currency, bitcoin does not have a centralized distribution center

bitcoin is calculated and generated by Internet nodes, and anyone can participate in the proction of bitcoin. As long as there is the Internet, no matter where you are, anyone can trade and mine. This characteristic leads to the fact that bitcoin is more valuable than its counterfeit currency{ RRRRR}

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