Turkey announced the ban on BTC trading, the risk of BTC is irregular at all
After Turkey announced the ban on BTC trading, the price of BTC was also affected, but many people still did not realize that BTC’s dilemma was coming. In fact, many people only look at the price of BTC, thinking that the price of BTC has been rising, so BTC will always increase in value. In fact, this is a false perception. Although BTC has been increasing in price, it does not mean that all BTC are worth more than $50,000-60,000. BTC is different from the price increase of this round of graphics cards. Its price increase is not because of the rigid demand of the market, but because someone is hoarding a large amount of goods artificially.
BTC itself is a product of blockchain technology, and it cannot generate any value by itself. Its value-added is based on the acceptance of shares. In other words, if BTC wants to continue to increase in value, someone must continue to take over, otherwise the last person to take over the BTC will fall in hand. Although BTC has been hyped as digital gold, the total amount of BTC is only 21 million, which means that it will never depreciate. But many people have overlooked one point. Although the total amount of BTC is 21 million, the technology of BTC can be copied.
There are thousands of cryptocurrencies in circulation on the market. Although BTC will not be issued, new cryptocurrencies can be launched imitating BTC. Of course, the BTC model is not necessarily the best. Some people think that the Dogecoin model is also very good. Someone doubled the price of Dogecoin on April 16. If the price of a cryptocurrency is doubled so casually, then in the future, the price of Dogecoin may plummet by half. Cryptocurrencies, including BTC, have the same risks, and there are no rules at all.
BTC is moving the cake of the legal currency system, and more and more countries will recognize this
At the same time that Turkey announced the ban on BTC transactions, the European Central Bank also conducted a new round of research on the digital euro, which will accelerate the pace of advancement of the digital euro in the future. Now the Eurozone, Renminbi and Japanese Yen all have plans to launch CBDC, and the digital renminbi has undergone multiple rounds of practice. In the future, several major currency areas will launch their own central bank digital currencies. Some people may think that BTC has a natural advantage and that other central bank figures cannot compete with BTC.
In fact, many people have overlooked a problem, that is, although BTC belongs to a decentralized currency system, it is not restricted by any country. If a single country wants to suppress BTC, the chance of success is very low, unless several big countries block BTC together. Although it is very difficult for a single country to completely ban BTC, it is still very easy to ban BTC from trading in the country. Although BTC is a decentralized currency system, it is not an extra-legal place, and BTC transactions also need to comply with relevant laws.
For example, this time Turkey completely bans BTC trading. If the enforcement is relatively strong, most people offline and online will not risk trading BTC. Although many countries are very ambiguous about BTC's policies, it is because BTC's extreme incentives for miners have caused many people in China to support BTC.
However, over time, countries that support BTC transactions will find that BTC is actually moving the cake of the national legal currency system. Although it seems that BTC mining has increased foreign exchange income, these incomes are actually derived from the sheep. Although it seems that mining is a means of earning foreign exchange through export, cryptocurrencies such as BTC are actually digging into the corner of the domestic currency system. Because BTC has large transaction loopholes, the tax policy of BTC-related transactions is still unclear, and every transaction of BTC is suspected of tax evasion. Of course, pure mining is not included here. The transactions here refer to private transactions, shopping and hype BTC.
Many people may think that I am alarmist. They think that every transaction of BTC is legal. They can only say that your policy is seriously insensitive. Like other representative works in the Internet era, BTC has developed too quickly, resulting in insufficient laws and regulations. The tax policy for BTC may come late, but it will definitely not come. Many of BTC's current advantages are due to the lack of supervision, and it is difficult to withstand the test of policy.
With the growing reputation of BTC and the increasing price of BTC, the huge profit margins of BTC will also be noticed by more people. If BTC wants to keep rising in price, it must continue to harvest new users. I don't think anyone will be willing to be harvested by BTC. Therefore, if the central bank digital currency CBDC is launched in the next few major currencies, they will compete with BTC in the market. I think this will be bad news for BTC. The BTC event will be a turning point, allowing more and more countries to recognize BTC again.
The last sentence is that if BTC wants to continue to increase in value, someone must continue to hype BTC. When more and more countries realize this, it is time to intensively introduce BTC bans. Of course, some countries also use other methods to share a piece of BTC, which is to launch BTC funds and establish exchanges for BTC and other cryptocurrencies. Of course, this is also one of the best development results of BTC, allowing more people to be tied to the battleship of BTC and jointly harvest other countries and people. Only by establishing BTC's interest alliance, BTC can better harvest the wealth of others.
