What is Bitcoin? Why is digital currency an opportunity for ordinary people?
Then let me talk about the nature of currency first.
Looking back at the history of currency development, its essence is consensus. From ancient times to the present, from ancient shells to precious metals such as gold, and finally to paper money that we all use, although the form of currency has been changing, the only thing that has not changed in the thousands of years of evolution is the value behind the currency.
This value comes from the consensus of the group. If everyone recognizes that something is valuable and can be used as a measure of transaction, then this thing can become currency. From the first person who thinks something is good and then conveys it to another person, to more and more people recognizing that this thing is valuable, then this thing has value.
Back to the topic, the consensus of Bitcoin has been expanding, without any regression, which everyone can see. In a physical sense, Bitcoin is just a string of encrypted characters, which has no value in itself, let alone any intrinsic value. However, with the help of the blockchain technology system, Bitcoin has created a fully public, distributed, tamper-proof and traceable database. This database can be viewed by anyone. It is open and transparent, extremely difficult to tamper with. The technical credit is open and transparent, and it is not subject to human manipulation. To some extent, Bitcoin is the safest investment target.
In the case of a bad global environment, various investment and financial products have shown weakness to varying degrees. A-shares are well known for their high investment returns and low returns, and we cannot participate in the investment of US stocks. In terms of precious metals, gold and other products have risen to high levels, and it is not easy for us to invest at this stage.
Bitcoin and other digital currencies can be participated at any time. Moreover, there are many ways for us to participate in Bitcoin and other digital currencies. If you believe that Bitcoin will become more and more valuable in the future, then you can go long on it. As the price of Bitcoin rises, your assets will also rise; if you do not believe in the value of Bitcoin, then you can go short on it. If its price gets lower and lower, on the contrary, your assets will increase.
