When will Bitcoin disappear (Why Bitcoin won’t disappear)?

When will Bitcoin disappear? In many countries, the emergence of Bitcoin is mainly for daily convenience. However, with governments cracking down on money laundering activities, currency policies, and other illegal activities, people have become worried and fearful about Bitcoin. Here are some questions that arise: Under what circumstances will Bitcoin lose its value? Why does this happen? Let’s take a look together:

1. When people buy encrypted products and can’t get them in time due to rising prices;

2. If there is no immediate way to convert encrypted assets into US dollars and they rapidly depreciate;

3. When users transfer into digital asset exchanges and make deposits or withdrawals (such as using fiat currency or Bitcoin). These transactions may take hours to settle;

4. Bitcoin price drops may affect its price volatility and increase investors’ portfolio risks;

5. Will Bitcoin be used for transferring goods and services?

So, what is Bitcoin really?

1. Bitcoin is not used for payment purposes or as a store of value. It cannot circulate in a fixed manner like gold because its supply is limited, making it irrelevant and only controlled by individuals. Therefore, there is no need to possess a fully decentralized system to store anything.

2. Bitcoin, like stocks, has scarcity, but not all stocks are the same. For example, Tesla, a real estate company, has turned its cars into a Ponzi scheme, achieving financial freedom through Bitcoin investment. The stock market operates in a similar way.

3. For ordinary consumers, Bitcoin is a financial instrument in a new economic system, usually targeted at institutions rather than serving everyone like cash. This is because they can provide liquidity in an unregulated environment. Therefore, Bitcoin is limited by such risks, but it also has some appeal for the general public.

4. Bitcoin is only for speculators and not true holders. Bitcoin is not a representation of money but a form of medium of exchange, much different from the relationship between gold and silver. We know that Bitcoin is a virtual currency, and most people believe that Bitcoin is safer than all other fiat currencies in the world.

The purpose of the birth of Bitcoin is to solve this problem. Although some people think that blockchain is a huge bubble, it is not necessarily that simple under certain conditions, which means that many people cannot see its potential. In fact, Bitcoin does have such a possibility – that is, to allow those who want to buy a house in the real world to make money; however, on the other hand, Bitcoin has not brought practical changes to life.

In addition, there are many factors that have led to the development of Bitcoin, such as the lack of security and fungibility in the Bitcoin network itself. One of them is that Ethereum is currently one of the main mechanisms suited to be a currency, but Bitcoin is likely to be eliminated due to its technical characteristics and the design of its cryptographic algorithms.

Furthermore,

Why Bitcoin won’t disappear

Editor’s note: This article is from Lian Nei Can (ID: lianneican), the author is Inner Reference Jun, authorized reprint of Odaily Star Daily.

In the past decade, Bitcoin has undergone a major price adjustment, dropping from around $10,000 to below $20,000. However, as people’s trust in cryptocurrencies increases, mainstream adoption increases, and regulations improve, the term “coin circle” is gradually becoming a popular term.

Despite this, most people still believe that Bitcoin will continue to exist. According to data from research company Chainalysis, as of April 28, 2021, over 500 million users have used Bitcoin wallet applications. Bitcoin, which has been in development since 2009, has not been completely replaced, and some people criticize it, saying “blockchain is the future, but it won’t disappear.”

So why won’t it disappear? We must understand this question – what will it bring to our world? Below, we will explain in detail why Bitcoin won’t disappear. First, we need to understand what Bitcoin is. How does it work? Is it a store of value or just a tool? When you put all your digital assets on the same card, do you need someone to help protect these assets? If the answer is yes, then your funds belong to you.

Next, let’s look at other things, such as stocks and bonds. If you buy Bitcoin or gold as collateral with cash, you can get a certain amount of company stocks. This is because they have a fixed supply and their prices can fluctuate greatly, making it more difficult for investors to profit. There is also an important point, and that is its cost is very low! Of course, there are many reasons to explain why this is done. Finally, don’t forget that many things in the world are issued by governments, so each country will have a central bank to control their currency. This is why the U.S. Federal Court believes that the cryptocurrency industry should ban Bitcoin transactions. Although many people now believe that this may affect the development of Bitcoin, to a certain extent, they think Bitcoin is a good idea.

Going back in history, perhaps the most influential event in history was the “financial crisis” that occurred at the end of 2013, when two large-scale economic collapses occurred worldwide; this was followed by a series of serious security vulnerabilities caused by the burst of the 2014 Internet bubble; similar events occurred at the end of 2015. However, it wasn’t until recently that there was some relief. In mid-2017, due to economic stagnation, many central banks around the world turned to support cryptocurrency payment systems, leading to the devaluation of the US dollar. At the same time, Fed Chairman Powell said that inflation was rising and eventually achieved the expected effect. He added, “I still believe this is a long-term trend, but at present, it does not mean that Bitcoin will disappear in the near future.”