What are the hazards of Bitcoin (the harm of Bitcoin)

What are the hazards of Bitcoin? From a technical perspective, it mainly has the following points: (1) The essence of currency is anonymity. Bitcoin existed for a long time before its birth, but with the development of the internet, this situation began to be gradually known and recognized by the public (2) Bitcoin prices fluctuate sharply; (3) The emergence of blockchain technology has led to an increasing demand for encrypted assets; (4) Due to the unstable price and lack of any value support of Bitcoin, investors are easily able to transfer funds to other currencies (5) Currently, there are relatively few mainstream digital currencies circulating in the market and the trading volume is not high, which is one of the reasons for the decrease in market popularity

The Harms of Bitcoin

Editor’s Note: This article is from the Caiyun blockchain (ID: cybtc_com) and has been authorized to be reprinted by the Daily Planet Since the birth of Bitcoin, people have been worried about its adverse impact on the economy. But now, we can be certain that its price may fall significantly over time So, why do you say that According to statistics from the World Bank, approximately 300 million people currently own digital currencies. That is to say, many of them may not believe that there are only 21 million Bitcoins in the world

If crypto assets are divided into three categories, they are legal currency and Stablecoin. This means that they are all considered as virtual goods or means of exchange, and usually do not exist in any form elsewhere. These tokens are also called “Stablecoin”, but they are actually a store of value. Therefore, Bitcoin is this so-called digital gold When you consider purchasing BTC in US dollars, you will find that most people do not hold cash as expected. In fact, when a country wants to combine its savings with another country’s remittance settlement, “payment” is actually a very important factor If you want to buy things in US dollars, the first thing you need to know is what it looks like, which is the government issuing bonds; Secondly, you must understand how to use the US dollar for financial activities such as loans and loans, plus the volatility brought by Fiat money and other negative effects However, the problem is that many central banks do not want to print their own banknotes and convert them into US dollars, thus disrupting the US dollar as a global reserve currency. Therefore, Bitcoin is naturally subject to regulation. However, for those who believe that the United States is passing a measure called the Securities Dealers Act to prevent fraudulent behavior, Bitcoin is undoubtedly a good idea – at least fundamentally

Today, regulators in various countries are discussing whether Bitcoin should be controlled by a Centralisation entity, or whether the law can be applied to Cryptocurrency, and whether any individual should be involved in this process Of course, although there is no risk in doing so, it also leads to investors being unable to accept it to some extent. For example, one of Canada’s largest private investment companies, Temasek, recently announced plans to launch a new stock type called Bitcoin Futures ETF

In addition to the two main problems mentioned above, we should also pay attention to the fact that the inflation rate of Bitcoin is almost always higher than 2%, and a large number of speculative demand pours into the market every year, which has created a huge foam. In addition, to avoid similar situations, the upper limit of Bitcoin supply is very small, making it difficult to determine its total amount On the other hand, even under current market conditions, Bitcoin still has a high investment return rate (i.e. $10000 per coin).