Bitcoin inflates money

1. bitcoin is not a currency, it's just a commodity. If the issue of paper money can follow the economy, there will certainly not be much inflation, but the key is that it can not.

2. What drives bitcoin to soar
supply and demand
when compared with other virtual currencies, bitcoin always mentions "fixed output 21 million". In the early years, bitcoin had not been exposed to investors in a large area. It proced a lot and g a lot, but there was no demand. But now purchase bitcoin, the price is expensive, the output is small, the demand is big
analysts of jiafengruide believe that when there is an imbalance between supply and demand, commodity prices will be affected. Influenced by the policy, many bitcoin holders are now keeping a wait-and-see attitude. The decrease of bitcoin in circulation in the market and the increasing demand for bitcoin in the market are bound to push the price up, but in fact, it will not be the investment speculators who come into the market at this high level who will benefit in the end
popularization of regional chain
the report released by UBS in October mentioned the problem of regional chain technology. The report shows that by 2027, the global investment value of regional chain technology will reach 300 billion to 400 billion US dollars. And the regional chain as an infrastructure development, will be applied to more and more scenarios
at that time, whether the popularity of regional chain will raise the price of bitcoin is also full of uncertainty
investor confidence remains unchanged
although many institutions and financial giants are short of bitcoin, investors are still confident in the future value of bitcoin. After all, in history, is there any trading proct that can soar 7.54 million times in eight years
analysts at Jifeng Reed said that 10 years ago, the impact of the financial crisis left many countries so far unshadowed, and the share price bubble continued to expand, and investors would worry whether the original financial system would collapse again. Bitcoin, which has a strong performance, will attract more investors with capital inflows, thus driving up prices. In a way, bitcoin is already a safe haven
although the trading of bitcoin was suspended by China in September this year, bitcoin surged by more than 233% after de Sinicization< In November, bitcoin began to hard bifurcate, that is to say, the regional chain was divided into two parts, which is equivalent to doubling the issue of bitcoin, which means that the value of bitcoin will be diluted. Affected by the impending start of hard bifurcations, bitcoin started on November 9 and has been on the decline for four days
the suspension of the 2x fork, originally scheled for November 16, has eased the anxiety over the expansion of the bitcoin instry chain, and the market is a little relieved of the possible collapse crisis caused by the fork
bubble greater risk
many investors have seen the bitcoin appreciation and profit margins after they have entered the bitcoin trading market. However, the current domestic large-scale bitcoin trading platform has been completely closed, and the regulatory level has not relaxed the entry of bitcoin into the domestic market
bitcoin, as a speculative commodity, has great bubbles and unknown risks. We tend to ignore the risk, and it is often the risk that damages the funds in our pockets. When participating in a high-risk market, we must reasonably allocate personal assets, such as the allocation of stable financial procts such as stable profit selection investment plan. We must not use all our wealth to allocate high-risk investment procts
in a word, bitcoin has risen dramatically in recent years. It's hard to avoid some words like "you are the richest man in China now if you bought bitcoin eight years ago". But eight years ago, you didn't know that bitcoin could be as brilliant as it is today. You might as well change your vision and look for the next "bitcoin".

3. Reasons for bitcoin's surge:
factor 1: bitcoin's spot trading volume rose
the decline on March 13 caused BTC to drop from US $8000 to US $3600 within 24 hours, and the buying volume of coinbase, Kraken, binance, bitfinex and other spot exchanges surged
at the same time, open positions (used to describe the total number of long and short positions opened at a specific time) fell sharply in mainstream futures exchanges (including bitmex, binance futures and okex)
the sharp decline of open position and the obvious increase of spot purchase volume of futures exchange actually lead to the transformation of the market. The spot market began to control the price of bitcoin, rather than the futures market
the futures market usually causes sharp fluctuations in the price of bitcoin, because traders use leverage (borrowed funds) to trade cryptocurrency, while in the spot market, investors buy and sell bitcoin without borrowing funds
this change has stabilized the market, enabled the price of bitcoin to rebound without a significant correction, and the volatility is relatively low

factor 2: BTC should not have fallen below $4000 at the beginning
on March 31, coinbase published a blog post, describing in detail the market trend after bitcoin plummeted to $3600
the exchange said that most users of the platform bought bitcoin after a sudden decline, adding that the waterfall clearing led to a much lower decline in bitcoin on the futures exchange than on the spot exchange
coinbase explained: "waterfall clearing is the most prominent in bitmex, which provides highly leveraged procts. During the sell-off period, bitcoin trading price on bitmex was much lower than other exchanges. Until bitmex was maintained at the time of the highest volatility (based on DDoS attacks), waterfall clearing was suspended and prices rebounded rapidly. When the st settles, bitcoin hovers around $5000, before plummeting below $4000. "
this opens up a theory that bitcoin should not have fallen to $3000 in the first place, which explains why bitcoin rebounded rapidly to $7350 in a V-shape

factor 3: rapid recovery to key support level
since the beginning of 2018, the level of $5800 has been an important support area in history. Avoid bitcoin prices falling between $3000 and $4000, except in December 2018
bitcoin prices quickly recovered from the $3000 range to $5800 in seven days. After three tests in March, the price of $5800 became a strong bottom, allowing bitcoin to continue its rally.

4.

When we learn about finance, we will often hear the word inflation. What impact does it have on us? Its existence will cause some phenomena, such as rising prices and devaluation, which will have a certain impact on the country and bring more frustrations to people's lives. Let's think about it, Why does it affect the trend of bitcoin

Therefore, the emergence of inflation also helps the trend of bitcoin and helps its growth. Therefore, it shows that inflation promotes the growth of bitcoin. They are interrelated and help each other. So the main reason that affects bitcoin is the impact of inflation, which makes its existence more important, So many people use him as an important tool to resist this phenomenon. For him, then it will become better and better, more and more fierce

5. In Keynesian economics, inflation caused by moderately issuing money in the short term can moderately promote the economy. 2. Money is an important source of Finance for the country. Government expenditure needs to be financed, including taxes, bonds, etc. Generally speaking, there will be a lot of opposition to more taxes. It is difficult to pass a tax policy. If the government can't borrow money from bonds, it is also very troublesome to issue money to raise money for the government, In fact, this makes the residents' currency devalue and levy inflation tax in disguised form. But now the government knows that the cost of hyperinflation is very high, and it is very cautious to use this function. 3. To promote proction, generally speaking, if there is a technology shock that reces the proctivity of workers, the real wage needs to be reced, but if the nominal wage is directly reced, the workers will strongly oppose it, But for example, if 5% inflation gives 3% nominal wage growth rate, the real wage will be reced by 2%, which not only realizes the wage rection, but also makes the workers psychologically easy to accept

6. Hello, there is not much difference between bitcoin and speculation in stocks. The only difference is that stocks still have up and down limits. But bitcoin may go up a lot in one day, but it will also go down a lot in the same day. Moreover, the way house property resists inflation is because all prices rise at the same time, house property is bound to rise (except the second and third tier cities). So the way to really fight inflation is to accumulate wealth as much as possible, make financial funds or buy some insurance (domestic and foreign). If you have specific needs, you can send a private letter

7.

Can bitcoin really resist inflation and deflation

Venezuela solves inflation with bitcoin

"we are all millionaires, but we are all poor. The salary can only afford a kilogram of meat. "

the true portrayal of Venezuela is that inflation has turned their hard-earned money into a bubble, which makes it difficult to solve the problem of basic food and clothing. For this reason, the Venezuelan government tried to use virtual currency to solve the inflation problem in Venezuela, so as to issue oil currency, but so far it seems to have no obvious effect

in this case, bitcoin is unable to intuitively resist inflation and deflation. Is the existence of bitcoin LED digital currency meaningful

Wang Yongli, former vice president of the Bank of China and vice chairman of China International Futures Co., Ltd., believes that the digitization of legal currency is the inevitable direction of future development, and the digitization of legal currency implemented by the Central Bank of China is the digital goods and intellectualization of legal currency. In short, its goal is to replace M0; Bitcoin such as network digital currency, the final positioning is a network of community currency or business district currency. Its value depends on the coverage, penetration and activity of the network community, as well as the value of the business district. The value of currency is determined by the value of business circle, not by the value of business circle. Wang Yongli suggested that current practitioners "try every means to apply your blockchain to the real world, really solve the problems in the real world, and make it widely used. Only when there is activity, can currency really have value."< br />