Why does Bitcoin use GPUs (Why does Bitcoin use USD as pricing)?

Why does Bitcoin use GPUs? Why does Bitcoin use GPUs?

Bitcoin adopts a special coding method called “instruction set.” According to data from CoinMarketCap, the current price of Bitcoin is about $20,000. However, due to its limited memory capacity and slow speed, it cannot operate at extremely low costs like current cryptocurrencies and with the increasing mining difficulty, people have raised questions about how to choose ASIC chips for Bitcoin mining: What is the GPU used for Bitcoin? And why choose this method?

Why does Bitcoin use USD as pricing

Editor’s Note: This article is from BlockBeats, authorized to be reposted by Odaily.

In the traditional financial field, the USD is one of the global currency standards. But Bitcoin is used as a unit of measurement. Why use USD?

According to data from CoinMarketCap, the 24-hour trading volume of Bitcoin is around $600 million, which, calculated at the current price, is equivalent to the price of one BTC. Taking May 31 as an example:

When the price of a digital asset exceeds $500,000, it means that the cryptocurrency has depreciated by about 80%.

In other words, many people now mix USD and gold together for buying and selling, because the value of U.S. government bonds is more than what they purchase, such as physical goods like oil. However, this situation may not last all the time – for example, if we assume that after you buy a Bitcoin, its price immediately drops to 0.007 BTC or more. Therefore, you would be surprised by the price change if you don’t believe it, but in fact, you can definitely understand it: “USD = Fiat Currency.”

Of course, many people do not know what these explanations are. In fact, from an economic point of view, USD is the only acceptable and even feasible way to value Bitcoin universally. So, what is USD pricing? Simply put, USD is an accounting unit. USD is a currency issued by a basket of central banks from various countries. USD consists of two parts: 1) the quantity of GBP (1 USD = 1 AUD), Swiss franc (3 RMB), and other euros. 2) The exchange rates of Canadian Krona ($2.8, $0.01, $0.05). 3) Carl Martinez Kaustrale, a member of the German Federal Reserve Board, said, “Due to the large gap between the international balance of payments and the European Central Bank, people often regard Bitcoin as a tool to hedge against inflation.” However, despite this, some theories still believe that the USD as the world’s major economies and emerging market countries may make domestic capital flows more difficult. “Over time,” the Federal Reserve is studying whether it should adopt other more extensive methods of regulation. On the other hand, for countries like China, considering the issue of foreign exchange controls, the USD may not enter circulation soon. In fact, in the past decade, interest rates in the United States have been high. In recent weeks, the Federal Reserve has also been discussing how to reduce cash usage through a series of measures. (Note: Implementation starts 6 months later)

In addition, some analysts argue that Bitcoin’s volatility is too high and its future development direction cannot be fully determined.