Can Bitcoin be killed? Where is the upper limit? Where is the lower limit? This article gives you the answer
This is the number of price dives Bitcoin has experienced, the largest one, and the decline has even been as high as more than 80%. But to this day, Bitcoin has not been killed. If you are new to cryptocurrencies or are on the sidelines, this issue can give you a deep understanding of the currency world.
In the past few days, there have been crazy rumors on the Internet that Bitcoin has dived again, and for the old leek, this fluctuation is no wave in his heart. With the scene of the currency price swinging with the wind with various news, everyone is no longer surprised.
Like a few years ago, Musk said that he wanted to love Bitcoin well and buy it in large quantities, and countless followers followed suit, and the price of Bitcoin was forcibly raised to $64,900, and then he thought that Bitcoin's energy consumption was too high, it was pseudo-decentralization, and he was not optimistic about the future of Bitcoin, and the price of Bitcoin fell. One person, one mouth, can control the entire market, and he can leave in style when he is done, and the regulation and law are helpless against him.
This kind of thing can only be done in today's currency circle. In the past 10 years, Li Xiaolai, who was known as the richest man in Bitcoin, stood on the platform with a bunch of junk coins, and leeks had no brains to buy them. In the bull market of 17-18 years, when ICO was the craziest, there was an old man named McCafe abroad, who recommended projects on Twitter every day, bringing a fire to the other, often doubling in a day and rising 10 times in a week, which is no worse than Musk's popularity today.
There is also the post-90s generation who invited Warren Buffett to dinner, Sun Moe Sun Yuchen, the reason why he is called Sun Mo, is because his knife skills are too ruthless, and it is 500 million with one knife, and other bigwigs in the currency circle can't stand it, young people don't talk about martial arts too much, and the leeks are all cut by your Sun Mo, how do you let us cut, and the story of Sun Moe will have the opportunity to tell it in detail later.
At that time, those hundred-fold coins, thousand-fold coins, all of them were violent, and they wanted to kill Bitcoin, and when the bear market came, all the slag was basically 99% up and down, that is, after falling by 90%, it would fall by at least another 90%, and you could never guess where it was, because the bottom was outside the screen.
There is a big divide in society about Bitcoin, some people think that Bitcoin is the future, others think that Bitcoin is a scam, the most brilliant IQ tax in human history, and should die.
There's no doubt that blockchain is a promising technology. But digital currencies are hard to say. At this stage, there is really no use for anything other than speculation. In the past decade, the mainland's supervision of cryptocurrencies such as Bitcoin has become more and more stringent year by year.
Will Bitcoin be killed?
Understanding Bitcoin's survival and investment value requires us to have a deep understanding of money and wealth. Bitcoin has been an enemy of the government since its inception, and it still is, and one of the core rights in the hands of any government in the world is the right to mint.
Bitcoin challenges the minting rights in the hands of governments, and it will inevitably be surrounded and suppressed by governments, but by the time the government reacts, the Bitcoin root has already been entrenched in the ground, and it is extremely thick. It will be incredibly difficult for governments to kill Bitcoin, and it will cost them enormously. Because Bitcoin is decentralized, it doesn't have a central core. Just like a starfish, it has no head, its intelligence is distributed throughout its body, and if you cut off any part of its body, a new starfish will grow from that part.
Governments also have different attitudes towards Bitcoin, with some banning it, some supporting it, and some neutralizing it. Since Bitcoin is an enemy of the government, why are there so many different positions? It has a lot to do with the political and economic environment of the authorities of each country. We don't have to worry too much about the attitude of other countries, but the policies of China and the United States towards bitcoin are very important. The attitude of the beautiful country towards bitcoin is clearly supportive.
In 2017, the Chicago Mercantile Exchange launched the Bitcoin contract, which was officially recognized as a commodity, along with oil and gold. This year, Coinbase, the largest cryptocurrency exchange in the United States, was listed, and the cryptocurrency circle is further moving towards compliance.
There are often comments in the comments that Bitcoin is a conspiracy of the United States, a tool used to fight with our leeks... Those who hold such views do not know much about the Fed and Bitcoin.
First of all, Bitcoin is obviously not designed by the U.S. government, Satoshi Nakamoto is publishing a Bitcoin paper, entitled "A Peer-to-Peer Electronic Cash System", Satoshi Nakamoto is designed Bitcoin as the currency of the future. But Satoshi Nakamoto is a top programmer and cryptographer, but to be honest, he really doesn't know much about finance, Bitcoin is designed to have a total amount of 21 million, the upper limit is locked, considering that there are many people who forget their private keys and can no longer get their own coins, so Bitcoin is a deflationary currency if it is a currency, but the ideal state of economic growth in various countries is to maintain moderate inflation in the currency, that is, to maintain about 2% per year, and the central banks of various countries are the most comfortable.
Bitcoin is clearly not up to the task.
It is impossible for the Fed to design such a currency that cannot be replicated indefinitely, because it is tantamount to self-financed efforts. No one thought of the cryptocurrency market with a market capitalization of more than $2 trillion today. In the first few years of its birth, Bitcoin was so small that the Fed and the big names on Wall Street didn't take it seriously at all, and found that Bitcoin had become the king of underground transactions. I wanted to kill it, but I found that I couldn't do it.
The system of the police department in Lincoln County, Maine, was hacked, and the hacker demanded that the police department pay bitcoin before it was cracked. The technicians of the police station couldn't crack it, so they could only obediently pay the hackers in Bitcoin. It was all blackmailed to the police, but the police had no way at all, which shows that Bitcoin is extremely hidden. You can't kill at all.
The Fed's policymakers are very good at judging the situation, and since it can't be killed, then domesticate it. But the bottom line is that Bitcoin can't affect the position of the dollar, and it would be great if it could be used to give the dollar an aid or something. The United States tries its best to classify bitcoin into the commodity or asset column, as long as bitcoin is a commodity, and the whole world recognizes it, the Fed has unlimited water release with its left hand, and other countries will buy assets to hedge against value, and the right hand is right to hold Bitcoin, you can buy it with confidence, I recognize it, but you have to use dollars.
In this way, Bitcoin will still be denominated and traded in US dollars. You're still playing in the Fed's private server. It would also ease inflationary pressures. However, Bitcoin is a new species, and it is still very young and far from grown. There are a lot of uncontrollable factors in this. The Federal Reserve is not worried about Bitcoin, but what worries it is the stablecoin that supports Bitcoin transactions, of which the largest issuance and use is USDT, which is equivalent to the electronic dollar, which can be exchanged one-to-one with the dollar, and the current circulation is about 51 billion US dollars, while the current US dollar in circulation is 2.2 trillion, but the issuance right is not in the hands of the Federal Reserve, but issued by a private company called Tether. There are many stories behind USDT, and we will tell them later when we have the opportunity.
This type of stablecoin is also widely used in underground transactions in countries around the world, almost bypassing the financial probe of the United States. This makes Americans feel like pins and needles on their backs.
In addition to the United States, it is China that can have a substantial impact on Bitcoin, and the policies of the mainland government have a great impact on the price of the currency, which should be seen in the market in the past few days. The mainland's attitude towards bitcoin is very subtle, 70% of the mining power of bitcoin is in China, mining is to account for the payment network of bitcoin, is the basis for maintaining the existence of bitcoin, we therefore consume a lot of electricity, the annual power consumption of global bitcoin mining is about 134.89 billion kWh, if the miners form a country, the country's power consumption ranks 27th in the world, more than the sum of the electricity consumption of the entire African country. This is at odds with our carbon neutrality policy goal.
Don't say that bitcoin mining farms use hydropower, wind power, and abandonment of electricity, the first batch of absenteeism in China has long filled the pits in these places, and a large number of mining farms are increasing energy consumption in vain. Despite this, there is not a single policy or regulation in the mainland that says that Bitcoin is illegal. It's just that every time the market speculates on coins, the relevant departments will come out to pour cold water and cool down. In 17 or 18 years, there was a policy trend that required the cessation of domestic mining business, and a large number of Chinese miners went to sea. Then the bear market came, and there were fewer people speculating in coins and fewer people mining. After 2021, there will be a complete ban on mining in China. China's big miners went to sea in full swing and had little impact on Bitcoin. Bitcoin's starfish physique, it is difficult for us to eradicate the entire mining industry. The trees were cut down, and grass grew everywhere.
We are also domesticating Bitcoin. Because Bitcoin leads the cryptocurrency, it is a trend of future money, although it may not be Bitcoin that goes to the end, but Bitcoin is undoubtedly the backbone of this trend. And the consensus of Bitcoin has also expanded to the investment targets of large institutions, becoming a new investment category. Tesla is not the only company buying bitcoin, with MassMutual Life Insurance Company, one of the largest and most highly rated life insurance companies in the United States, announcing that it has purchased $100 million worth of bitcoin. This is a list of 38 publicly traded companies and institutions that have invested in Bitcoin that are currently available. Therefore, the authorities did not rush to exterminate everything, but only intervened when necessary, so that the bulls, ghosts, snakes and gods in the currency circle could show their original form and avoid the abnormal development of this industry.
So, the lower bound of Bitcoin is not dead. It will always be present in the faith of a handful of people.
Do you think Bitcoin can be killed?
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