Why many people don’t know about Bitcoin (why is Bitcoin so expensive and why do people still buy it)

<img src='https://img.doulai.com/pic/enpic.php?k=Why do many people not know Bitcoin? What is the value of Bitcoin? Many people may not understand it or the technology behind it. For example, someone asked me: Do you think Bitcoin will be like gold The answer is actually very simple: Firstly, let's take a look at its operating principle – a simple blockchain system that can perform any complex function (such as programming) or smart contract; But when we apply this code to our business scenarios, the operations we do are different because we need to make modifications, changes, and other work to the code when developing software; And what if Bitcoin is used for trading? That is to write Bitcoin into blocks first, and then store it in the form of Cryptocurrency. In this way, we can solve practical problems through digital currency. So what is Bitcoin Actually, this sentence has been well-known to everyone for several years! Although it is not a problem that only emerged in the early days of Bitcoin, there are still some interesting aspects worth paying attention to: its mechanism is very simple: anyone can automatically create new tokens through smart contracts, and can also customize their own tokens according to different needs

And this mode is easy to cause misunderstanding and doubt. As people often say in the The Internet Age, “as long as everyone’s mobile phone can access the Internet”, “there is an updated version every day”, and so on So you would think that Bitcoin is a completely unnecessary thing that doesn’t need to rely on anything else, so even those who want to make money quickly can participate Of course, this is a big deal, after all, Bitcoin is just one of them. Many times, users are trying to make more profits. For these ideas, ‘mining’ is a great tool and a huge progress. But if you buy Bitcoin, you may find that some people don’t want it that way. In fact, many Bitcoin believers did not consider this. On the contrary, they believe that true Bitcoin is more meaningful than before because they can seamlessly exchange data globally. However, due to the fact that Bitcoin is still in its infancy and has not yet entered the public eye and become a mainstream adoption method, it still faces various challenges: is there anything significant beyond regulation From a technical perspective, Bitcoin is indeed interesting and revolutionary, but its shortcomings far exceed the capabilities of most ordinary investors, and it can even be said that its functions are unique

For example, some famous cryptologists, such as Alexander the Great, have used a method called Zero-knowledge proof to verify that they have some form of information. However, despite this, he still insists on using non Trusted Computing to ensure his identity authentication, so as not to miss future opportunities

Why is Bitcoin so expensive and why are people buying it?

Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com), authored by irish, and reprinted by the Daily Planet with authorization

With the rise of the price of Bitcoin and the entry of mainstream investors into the market, it has also started to rise and continues to attract more people to buy Cryptocurrency investments. Why is Bitcoin so expensive now that someone is still buying it? Firstly, it is about its value. The soaring price of Bitcoin in the past few months indicates people’s confidence in this new thing – to ensure its security by using a new and secure way of trading. However, due to some factors and other reasons, there is still great room for development of this type of encrypted asset. For example, the US government recently banned the operation of Bitcoin payment company CryptoCapital, and the US Treasury Department believes that this activity violates the Bank Secrecy Act (BSA). Without such a legal framework, Bitcoin will not be able to obtain widespread usage rights and will not be subject to regulatory or any third-party intervention constraints. Secondly, as a kind of digital gold, Bitcoin has a huge speculative risk – because many Cryptocurrency investors have invested their funds in it – including crypto exchanges, miners, etc. However, for an emerging industry, the issue has become more complex: why is this happening? The answer is very simple – when people talk about these technologies, ‘what you need is money’ rather than ‘real currency’. So what makes Bitcoin easier to become mainstream adoption? In the long run, this may bring benefits to users. “I hope to see more institutions involved.” – CoinMetrics

According to data provider Chainalysis, the size of the Cryptocurrency market has increased sixfold so far this year after reaching the threshold of $1 trillion in October 2019 In addition, the report also indicates that the Bitcoin network processes approximately 15 billion transactions per day. (Source: TradeView)

As mentioned above: “Although we believe that Bitcoin is a viable global reserve currency, it is still much better than most people expected. Therefore, Bitcoin must have the same security and liquidity as traditional Fiat money.” Analysts said that the market value of Bitcoin is only about 1% of the world’s 11th largest commodity. Despite so many people paying attention to the development trends of Bitcoin and how it can adapt to the challenges of economic transformation, it is still regarded as a scarce investment product and will further expand its influence in the future On the other hand, due to the current market environment, more and more financial technology startups are accepting Bitcoin for payment, and they seem to be looking for another way to cope with the price fluctuations of Bitcoin The original text is sourced from ambcrypto and compiled by the BluecountainLabs team. The English copyright belongs to the original author. For Chinese reprints, please contact the editor.