Why can the rise of Bitcoin continue? | Roast Star Selection
As the saying goes: "One day in the currency circle, one year in the world". In just a few days in 2021, Bitcoin has broken through the $40,000 mark, and one Bitcoin has reached about 250,000 RMB. It can be said that it is the best financial product on the market.
The epidemic is still going on now. Last year, Bitcoin fell to $3,800 in the "3.12" black swan event.
In the past 10 months or so, Bitcoin has become stronger than ever and has become a safe-haven asset for people. It has even been affirmed by many countries and reported by CCTV. So what is the reason it rebounded so quickly? Today I will give you a detailed analysis of those things about the rise of Bitcoin.
The first point is the impact of the epidemic last year. The economic situation is not good, and foreign countries are still in dire straits. China has continued to rebound steadily since it returned to normal in April, because China has the world's largest mine.
However, after the outbreak of the epidemic abroad, the decline of US stocks and other events, the biggest black swan event in the currency circle in 2020 came because of this. This thing is still going on.
People can't work, cut off their source of income, question stocks, and instead invest their income in cryptocurrencies such as Bitcoin. Coupled with the promotion of domestic economic recovery, Bitcoin has risen along with the trend, plus DeFi, NFT, privacy Driven by concepts such as computing, the rise continues.
Foreign countries are still living a life of not being able to go out. Compared with the restrictions in Hebei, Liaoning, Shenyang and other places, China is much better. No income can only think about asset appreciation. This is human nature. It coincides with some big companies’ optimism about Bitcoin and the entry of PayPal, Visa, Master and other giants, plus the explosive news from the media, making people see the ultimate wealth appreciation. The best way, so more and more people began to buy Bitcoin, which led to the continuation of the bull market.
After talking about some reasons for the rise of Bitcoin, I want to talk to you about the real role of Bitcoin that I see.
In some underdeveloped countries, due to the poverty of the government, they have to levy high taxes to maintain the national economy, and a large part of the taxation comes from cross-border remittances. Many people work across the border and then remit their income to their homes. The handling fee is unimaginably high. If calculated at 10% of each transaction, there will be a handling fee of US$1,000 (equivalent to more than RMB 6,000) for a remittance of US$10,000, which is quite expensive.
We can use WeChat, Alipay, and bank cards to pay at will in China, and the best way for them to solve the handling fee is to use Bitcoin. Interested friends can check out the "Blockchain New" produced by Sancheng Media, Real-world scenarios of Bitcoin applications are recorded.
We cannot deny the financial properties of Bitcoin today. Just like gold, it can also change its financial properties through its own holding. Perhaps in the future, Bitcoin will become an asset that everyone voluntarily holds while increasing in value. It is also possible in people's daily life.
During this period, Bitcoin still has a huge room to rise. The current situation is far from reaching the expected peak amount. I think $50,000 can be used as a dividing line. A breakthrough of $50,000 is the highest in history, and it has not been successfully broken through. , it shows that Bitcoin still has the possibility of a callback.
If you want long-term investment as a financial product, you can try it, but if you just want to get rich instantly, its fluctuation may make you continue to doubt life.
Although there are large institutions backing it up, this is also the biggest minefield of Bitcoin. If there is a sell-off by a large institution, the plunge will still become the most indescribable word for the current situation.
