What causes the decline of digital currency
1. Some unscrupulous media and we media spread false information
2. The domestic policy on digital currency is tightening, and the voice of supervision is endless
3. In recent years, countries such as Europe, America and Japan are not very friendly to digital currencies represented by bitcoin and wikilink
4. After a round of explosion, the value of digital currency instry graally returns to rationality.
What's more, investment enthusiasm is declining, value logic is collapsing, realistic pressure, and there is no future possibility.. In any case, this thing is doomed to die out. Now it depends on how long it can still bounce. It is generally downward, but there are still some ups and downs.
(1) the long-term investment of digital currency is a kind of high-risk investment
digital currency investment is faced with policy uncertainty, technology risk, competition risk and other risks. For example, the policy changes of digital currency supervision in various countries, the possible cracking of consensus mechanism, and the risk of competition and substitution of other decentralization and legal digital currency. These risks determine that digital currency investment is still a high-risk investment in the long run
(2) there are many uncertain factors affecting the short-term investment of digital currency
in the short term, the price of digital currency is affected by more technical, news and fundamental factors that affect short-term supply and demand, and the price fluctuates greatly, with strong uncertainty and unpredictability.
1. Digital money supply:
for example, the supply of bitcoin may be limited (21 million), which is expected to be fully exploited by 2040, but even so, the availability of money will fluctuate with the speed of its entry into the market and the activities of its holders P>
2, the value of the digital currency: the value of the
digital money market and the expectation of its currency will affect the behavior of traders, choose to participate in a blowout market or short bubbles. p>
3. Negative reports:
any currency will be affected by the public perception, especially digital currency. Even in its heyday, its security, currency value and currency circulation have been questioned
4. Resource integration:
establishing the image of digital currency and building the confidence to defeat traditional currency depend on its integration with new payment system and crowdfunding platform
5. Instry acceptance:
bitcoin and other digital currencies have not been widely accepted by global enterprises, and the impact of placing it in a more important position in enterprises is unknown
6. Key events:
any major event, including regulatory changes, security loopholes, macroeconomic setbacks, may have a serious impact on cryptocurrency
extended data
monetary characteristics:
as a non fully circulating asset, the strong price of digital cryptocurrency must be supported by reserves; The price fluctuation depends on the real-time transaction demand of bitcoin to legal currency
the biggest feature of digital cryptocurrency is that it is global. No matter where you are, of course, the human beings in the Mars bunker outside the earth have no problem. As long as you can log on to the network, you can freely control your own assets within the scope of the global network, which is safe and convenient. The assets in an address can be controlled independently or jointly (multi signature smart contract)
It's not surprising that bitcoin has dropped by more than 10%, because bitcoin just rose by more than 20% not long ago, so a 10% drop can only be regarded as a correction, not a drop. But what's the fundamental reason for bitcoin's decline? Now I'd like to talk about my personal views and ideas on the issue of bitcoin for your reference and discussion only
summary of problems
the reason for bitcoin's collapse is that it rose too fast, so it led to a significant correction. It's not surprising. After all, no commodity can continue to rise, and bitcoin is the same. If you think bitcoin can still rise, I won't express my opinion, but you have to think of today's collapse, Because it is very likely that one day, you will also encounter the same slump of 10% or more as today, so investment should be cautious, especially for this kind of virtual investment procts. If you are not careful, you may lose your fortune. The above is my personal views and ideas, for your reference and discussion only
The sharp drop in the price of bitcoin will affect the stock market, and the funds that buy bitcoin and the blocks related to blockchain will fall e to the sharp drop in the price of bitcoin
with the continuous development of science and technology and the emergence of emerging instries, bitcoin, as an emerging instry, has attracted the attention of many people. Bitcoin has increased tens of thousands of times in more than ten years, which makes many people feel incredible. Bitcoin has also become a symbol of wealth in everyone's mind. The sharp drop in the price of bitcoin will have an impact on the stock market, especially on the bitcoin funds and blockchain technology, which are closely related to bitcoin. The sharp drop in bitcoin will also cause investors' losses