Reasons for digital currency
therefore, as the world's second largest economy, we need to develop and implement digital currency
the above are my personal suggestions, which I hope will be helpful to your questions.
1. The factor of investment supply and demand is actually not independent, and investors' demand for digital currency is also affected by various news factors. However, from the price surge of last year, in the absence of obvious policy and other news, The admission of investors and investment institutions will also promote the price growth
2. Policy factors are also important factors affecting the price of digital red packets. In the past, the implementation and formulation of policies in South Korea, Japan, the United States and China have affected the price trend of bitcoin
3. The real financial factors and the instability of the real financial world make the demand for digital assets rise from time to time. For example, the Chinese government's policy adjustment, the brexit of the UK, the setback of the global stock market at the beginning of 2018 and other events all give play to the hedging characteristics of digital currency
4. Technical factors. Although the security of digital currency has been highly respected in its development, several technical crises still occurred in its development history. For example, bitfinex, the largest bitcoin dollar exchange, was attacked by hackers and stole 120000 bitcoin, and bitcoin fell by 25% in the following six trading days
5. Good news and bad news will affect the fluctuation of currency value
6. The market trend will be affected by the actions of the leading enterprises in this field, platforms, digital currencies with large market share, leaders with great influence in the market, etc
besides, choosing a good project can avoid risks to a certain extent. For example, HNB, the next generation of decentralized blockchain economy, is a reliable project. It relies on the real economy, and at the same time uses value exchange to continuously create endogenous value. It uses blockchain to build an economy, so that everyone can participate in it and get returns through labor, instead of relying on currency speculation.
the reason for the collapse of digital currency is that the valuation is too high and the rise is too large. Digital currency itself does not proce any profit. The rise is basically speculation, which is easy to cause panic selling and collapse with the continuous development of economy at any time, science and technology has brought us a lot of changes, and these emerging instries have attracted many people's attention. If we grasp the opportunities, the emerging instries are completely likely to change our destiny. The main reason for the collapse of digital currency is that the rise of digital currency is too large. Digital currency itself does not proce any profit. A thing that does not proce any profit will rise tens of times or tens of thousands of times. This is completely speculation. Anything that goes up is a risk. At this time, a little panic will lead to selling. This is also the reason for the collapse of digital currency
I think it's normal for digital currency to collapse, because a commodity has a huge short-term rise, and the commodity can't generate profits. The key is that digital currency has no reference, and the rise has no fundamental support. It will certainly collapse in case of panic. I think it's very normal. This is speculation, and speculation will certainly have risks, It's just as expected