Why is Bitcoin trading congested (why does Bitcoin rise and fall)

Why is Bitcoin trading congested? Why is Bitcoin trading congested? Why is Bitcoin trading congested? From June to September 2018, most of the Cryptocurrency market was conducted at a lower cost. However, many times when Bitcoin prices rise, there are high transaction fees, which indicates that Bitcoin exchanges face serious security issues, especially some exchanges facing issues such as fund theft, network delays, and other network attacks caused by their inability to process transactions in a timely manner So what exactly caused this impact? Let Planet Lord (WeChat: o-daily) and everyone analyze together. (The above are issues reported by some users)

Today, let me introduce to you that Bitcoin has experienced a very large abnormal transaction in recent days, and every time new digital assets are generated, it will attract the attention of a large number of traders. Because new users will initiate a “transfer” to their old account, they will encounter this problem every time they send these coins.

. If you want to transfer Bitcoin from another account, you first need to pay $1 to another address, so that Bitcoin can be quickly sent out and the transfer can be completed quickly. Additionally, there is a possibility that the trader waited for a long time before sending Bitcoin back. Therefore, although some people think this is a scam, there are actually many people who are worried that Bitcoin will be attacked by hackers. For example, Joe Lubin, a member of the Bitcoin Core team, told Coingraph, “If you want to continue holding your BTC, please don’t try using any tokens in your wallet.” He also mentioned that Bitcoin’s price has skyrocketed about 20 times and more investors are paying attention to it In addition, we have noticed that the search volume for Bitcoin on some websites has been continuously increasing, with the most popular being GitHub. A forum on Github shows that over 50000 independent developers submit their code or submit requests every day. With the development of technology, people are gradually realizing the seriousness of this problem, and they hope to utilize the decentralized nature of blockchain technology to improve existing business models

Why does Bitcoin rise and fall

Why does Bitcoin rise and fall? From August last year to September this year, stimulated by the halving of Bitcoin, prices skyrocketed to new highs In recent days, the coin price has also experienced a significant decline, and the recent price trend of BTC has raised many investors’ questions: Will Bitcoin be undervalued again? Why did Bitcoin continue to rise until now Let’s first take a look at a fact:

1. Currently, there is a large amount of funds crazily purchasing Bitcoin in the market, but due to a lack of fundamental support, most people are still in a loss state. Therefore, there are not enough retail investors buying in the market, causing this sentiment to persist; As time goes by, more and more people are paying attention to Bitcoin, but it remains to be seen whether this news is accurate

3. Many institutions are constantly increasing their holdings of tokens such as Bitcoin and Ethereum, which are sought after and loved by the market; 4. Bitcoin has surpassed gold as one of the world’s most valuable assets, but its recognition is not high and not many users have used it. If it is not because people prefer it but because it is digital gold, it is difficult to accept it again Although many people believe that Bitcoin is a form of currency, they still choose to hold it when it is actually “an investment”. So why is this happening? Reason 1: The statement that Bitcoin is linked to fiat currency is incorrect In the past few years, central banks of various countries have taken some easing measures to control inflation, with some governments expressing their intention to limit the amount of currency issued through quantitative tightening policies; Another group of countries claim to use economic models for regulation

According to United States Secretary of the Treasury Janet Yellen, “the Federal Reserve needs to reduce interest rates to zero”, and it is expected that there will be no interest rate increase in the future. I know this is an impossible thing to happen. So, as the world becomes more digital, the US dollar will depreciate. If China can really enter this field, it will definitely increase the supply of US dollars. On the other hand, the United States is also concerned that its debt level may continue to rise – which means the Federal Reserve may have to consider introducing more fiscal stimulus plans to reduce printing money.