Why does the price of virtual currency fluctuate
the reaction of cryptocurrency to the Fed's interest rate increase shows that cryptocurrency is regarded as a safe haven investment against the background of the continuous dilution of the value of major legal currencies. That's why demand for bitcoin has risen in countries where fiat currencies have fallen, such as India and Venezuela
however, if the Federal Reserve continues to raise interest rates, the market demand for cryptocurrency may decrease. The reason is that when the Fed stops printing new money, there will be less new money flowing into assets such as real estate, stocks and cryptocurrency. As a result, investor demand for anti inflation assets will decline.
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.
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Dazhuang
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news from governments
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progress and development of bitcoin
I think the price of bitcoin is rising again, from 10000 bitcoins for two pizzas ten years ago to more than US $600 million today. You can see the twists and turns and various legends on the Internet. Every time bitcoin bull, there must be a big drop, of course, a big drop is very shocking, usually down about 90%
the reason why bitcoin is valuable as a virtual currency:
1. Consensus! What is consensus is our common understanding a simple example: several friends are fighting against the landlord together, but they don't have any cash with them. What should we do? It happens that there are pebbles in the fish tank at home. Take out a stone as 5 yuan, then you can fight the landlord, and finally settle the wechat transfer. Five yuan for one stone was the consensus at that time. Of course, the consensus of bitcoin is very complex. It can be found on the Internet now I can only say that this is a huge plot, which is no longer a game that ordinary people can participate in. Bitcoin is likely to be in the hands of a few people, institutions, and even larger organizations, as a tool to participate in the object's wealth. If you're not afraid of death, invest in bitcoin. If you don't think it's exciting enough, add 50 times leverage
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I finally found two books, one is chocolate summer vacation, and the secret of the ocean and the universe. After selecting the books, I looked at my watch and found that it was still early
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