Why does BTC soar

1. It's just a reflection

2. Reasons for the rise: 1. Self: Decentralization (institutions can't freeze your bitcoin), difficulty in cracking, and certain anonymity. 2. When social problems occur, people worry about the preservation of traditional currency: for example, in 2013, in order to obtain the EU's 10 billion euro emergency aid loan, the government of Cyprus will levy a deposit tax on local bank depositors. In order to avoid policy risks, the public scrambled to change their currency into bitcoin. Then it spread to many countries in the euro area. It triggered bitcoin's first massive rise. For example, the new crown black swan event in 2020, the global "big water release" (negative interest rate), the decline of the influence of the US dollar, and the people and the government need the means to maintain the value of assets. 3. With the popularity of blockchain, a large number of institutions have entered the market. Traditional financial institutions, listed companies, and paypal have all promoted the rise of bitcoin. However, e to the limited supply, the demand has increased greatly, which has promoted the price rise.

3. Hello, there are three reasons for the surge
reason 1: the cost of mining bitcoin may be further increased
bitcoin is deflationary in nature, which means that the proction of bitcoin will decrease over time. The key is that in the near future, the return of bitcoin mining will be reced from 25 bitcoin to 12.5 bitcoin
the price halving will take place when the 420000th block of bitcoin is g up, which is likely to come in the next few weeks. We don't know how market prices will be affected at that time, but several news reports say that the price surge in the past week may be partly e to the imminent pressure of reced mineral supply< The second reason is that the public's interest in bitcoin has been rekindled by the speculation on the new e-currency.
Ethereum, as a blockchain technology, has been strongly supported by banks and VCs, and has been talked about a lot by experts in science and technology circles. In short, many people think that Ethereum is faster and more reliable than bitcoin, and may even replace bitcoin as a better electronic currency
the emergence of competitors is of course bad news for bitcoin. However, an article on the quartz website assumes that the rise in the price of Ethereum may in turn stimulate the price of bitcoin. But so far, there is no evidence that there is a strong correlation between the two e-money prices
the third reason: China, China, China
China seems to be the most convincing reason behind the soaring price of bitcoin The Wall Street Journal said:
at present, about 92% of the global bitcoin transactions are completed on huobi.com and okcoin, two Chinese bitcoin trading platforms. The rise in bitcoin prices over the weekend may be just the latest sign that Chinese investors are shifting money between different assets in search of higher returns
China's economic situation has influenced the fluctuations of bitcoin in the past. Therefore, we have reason to believe that this round of inflation is also related to China
at the same time, experts also mentioned the Chinese investor effect in their comments on reddit and twitter, and they think that this effect may not last long. If it turns out that the buying frenzy of bitcoin is just a passing stop for asset transfer to other forms, the current crazy situation will end.

4. Bitcoin is a kind of cryptocurrency, but because the blockchain technology was used to lock the market area at the beginning, the amount of bitcoin in the market is certain. If users want to get bitcoin, they have to spend power and computing power to "dig" bitcoin, so mining machines appear. The figurative metaphor is that the miner is a machine used to dig bitcoin. Its emergence not only improves the efficiency of digging bitcoin, but also promotes the rapid development of the instry

cryptocurrency has an exchange, but its price is determined according to the change of stock in the market. Many people want to buy bitcoin and other currencies, they have to go to these exchanges to buy, sell and other operations. In other words, the exchange provides a platform to facilitate bitcoin trading. Because of its encryption property, it is difficult for the regulatory level to uniformly deploy and implement relevant measures, so many countries prohibit bitcoin trading

but even so, bitcoin still has a high transaction value, part of which is the labor and cost of digging out coins, part of which is e to market factors. The total amount of coins is determined, so every coin g out will be one less. From the perspective of Marketization, the value of bitcoin will be higher and higher. Therefore, many people think that bitcoin has great value-added space, and many investors choose to hold bitcoin for a long time. As a result, the underlying bitcoin value is locked in. Later, bitcoin was also used in some social activities. For example, some foreign companies used bitcoin to pay their employees, and even bitcoin could be used for shopping

once the underlying value is determined, the sharp rise and fall of bitcoin is dominated by market behavior. This kind of uncertainty is more serious, and the market fluctuates more frequently. In the absence of relevant credit endorsement support, naturally, once there is any disturbance, bitcoin's value will fluctuate greatly.

5. The concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system. Unlike all currencies, bitcoin does not rely on a specific currency institution to issue. It is generated by a large number of calculations based on a specific algorithm. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses cryptography design 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

warm tips:
1. According to the notice and announcement issued by the people's Bank of China and other departments, virtual currency is not issued by monetary authorities, does not have monetary attributes such as legal compensation and compulsion, is not a real currency, does not have the same legal status as currency, and cannot and should not be used as currency in the market, Citizens' investment and transaction of virtual currency are not protected by law
2. The above explanation is for reference only. Before investing, it is suggested 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
3. Investors should not use such information to replace their independent judgment or only make decisions based on such information, which does not constitute any investment operation
response time: February 4, 2021. Please refer to the official website of Ping An Bank for the latest business changes
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