What Does Bitcoin Guarantee (What Does Bitcoin Need)

What does Bitcoin guarantee? What does Bitcoin guarantee?

The circulation of Bitcoin will not change within one year, and there will be no problem between 100,000 and 1 million. However, with more and more institutions entering the market, the price of Bitcoin will rise significantly and become a new asset class. After Bitcoin reached a new historical high on February 11, 2020, the market has always believed that the importance of Bitcoin as a store of value is increasing.

Therefore, at the end of the first quarter of 2020, the price of the BTC/USDT spot trading pair was around $9,700, with an increase of over 1000% compared to the previous market price. However, at the same time, due to recent market volatility, Bitcoin failed to stabilize above the $10,000 mark, and a large amount of funds also flowed out of the BTC/USD contract. Investors were unable to settle, causing further decline to below $9,000.

According to data provided by BitMEX Research, the total trading volume of the Bitcoin futures market before the end of 2017 was nearly $1.5 billion, much higher than the historical high of $1.6 billion at the beginning of 2018. In addition, since April of this year, the average daily trading volume of Bitcoin futures has exceeded $1.4 billion; during the same period, the trading volume of futures markets has reached $1.8 billion, an increase of more than 50% compared to the end of last December. (Data source: BitMEX Research)

What Does Bitcoin Need

What does Bitcoin need? Bitcoin is the native currency of blockchain, with many advantages and disadvantages. First of all, running in a decentralized manner is a very expensive system; second, transaction costs are high and unpredictable; third, nothing can compare to precious metals such as gold or silver. It becomes more difficult to use digital currency to hedge the demand for all cash on the balance sheet of legal assets (such as the US dollar).

So why should we buy a Bitcoin? This means that you must have some money to become a real currency, not a combination of other cryptocurrencies. However, for ordinary people, you don’t care about these issues. If you want to invest in BTC, you will need to pay a certain percentage of the margin, without the need for large amounts of funding like banks. The basic concept of Bitcoin is different from fiat money: Bitcoin is not a sovereign asset and is not controlled by the central government. It is a synonym for the global electronic currency system supported by countries and existing in digital form because people expect to obtain this value. Therefore, in order to make it recognized, Bitcoin is designed as a practical accounting unit, storage method, and used for daily business applications. What are the necessary conditions for Bitcoin? First, Bitcoin has three basic requirements: 1. Security and stability: Verify user identity through the network 2. Complete anonymity: Bitcoin as an exchange medium 3. Immutable and non-fungible. Since most cryptocurrencies are open source and its functions will increase over time, there are also two limitations: slow transaction speed and high transaction costs. There is currently no determined price data, but it is still effective from a technical perspective. What factors does Bitcoin need to guarantee a good price? First, Bitcoin should have the following basic conditions: 1. Security, that is, the ability to confirm transactions. 2. Usability and flexibility: Both parties to the transaction can compete with each other.