Where does my confidence in Bitcoin come from?

Where does my confidence in Bitcoin come from?

By Mister.D | MisterD | 19 Jun 2020


I have kept about 1.8 bitcoins. Later, at the beginning of 2016, I was going to give a speech on blockchain in a local high school, so in order to give a screenshot of the slide, I also bought dozens of Ether (Ether). At that time, Ether may not have entered the public view.

I also said before that I first learned that Bitcoin was in early 2012. At that time, I was very interested in the decentralized system. At that time, the price of bitcoin was 40 dollars. Recently speaking, "When I first knew bitcoin "Only XX dollars" has become the standard beginning when talking about bitcoin with friends. Since then, I have been a bitcoin holder. There is still a period of work related to bitcoin. Understanding of the technical level is of course essential, but I will think about the ultimate problem after a long time. —— Where does the value of Bitcoin come from?

But let’s explain another question first: Why has Bitcoin risen so much in the last two months? Some people may say that because of foreign exchange control, because of "segregated witness", because of WannaCry, but I think it can be simply summed up in the two words "confidence", the price rise is because more people buy, and they The reason for buying is because they have confidence in Bitcoin, or their confidence in Bitcoin has increased. The sources of this confidence are many. It may be that you have seen bitcoin rising all the way, you may have realized that bitcoin is an invention that may change the world. Of course, the greater possibility is that you have seen bitcoin from others around you. Confidence, your confidence comes from more people who have confidence in Bitcoin. Because of their support, you can buy Bitcoin with confidence without worrying that it will be worthless.

So why is Bitcoin so volatile? On the one hand, it is because its volume is too small. Even at the current price of 18,000, the total market value is probably only one-thousandth of the dollar. The smaller market value means it Easier to manipulate. On the other hand, Bitcoin can freely and quickly exchange P2P through exchanges around the world. Once news that affects everyone's confidence is generated, everyone will immediately buy or sell operations, which will be reflected in a more timely manner. The market price; and the exchange between fiat currencies often has to go through the bank, plus some controls on fiat currency exchange, resulting in the speed of confidence in the price of artificially slowed down, the exchange rate does not accurately reflect the current confidence of everyone. If a fiat currency has a market value similar to bitcoin and allows free exchange, I don’t think that just because it is a fiat currency, it will make the price of bitcoin more stable.

The emergence and rise of bitcoin really excited me. This is a very great experiment-whether a non-government-issued, decentralized, computer-based and Internet-based currency will eventually be recognized by everyone. This experiment is far from over. Countless people, including me, continue this experiment with real money and graphics cards. Bitcoin has driven hundreds of other electronic currencies and brought everyone's interest in blockchain and decentralized technology. To a certain extent, it may also have led to the development of graphics cards and special chips. Meaning beyond price.

Sorry English is not my first language, please pardon me.


Mister.D
Mister.D

Blogger | Artist| Judoka | Entrepreneur Sorry for my English, I learn it myself online


MisterD
MisterD

A crypto junkie

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