Do you understand the significance of Bitcoin being worth $100,000?
It's hard to imagine $100,000 each, many people would ask why?
So why is it that such a decentralized currency, which only stores value and has no real utility, can rise to $100,000 each? Let me share my perspective; I think many people's understanding of Bitcoin is somewhat superficial. They still use concepts like decentralization and distributed ledger technology, which are the weakest layer.
Secondly, some believe that Bitcoin will replace the dollar because the dollar's credit is low. They think that a currency like Bitcoin, which cannot be issued excessively and is decentralized, has its value elevated because it is limited. I think this is also incorrect. The real reason is that it has become a co-conspirator with the dollar. Many people view Bitcoin and the dollar as adversarial, but I think the opposite is true.
You see, the U.S. debt is now $35 trillion, right? Does America want to pay it back? Has it ever thought about repaying any debt? It's impossible; it can't be repaid, right? So what should be done? Look at how the U.S. has acted in the past years. First, it pegged the dollar to gold under the Bretton Woods system, saying that the value of the dollar was bound to gold. Later, when the Bretton Woods system collapsed, everyone thought it was a scam, and they all wanted gold from the U.S., but it turned out they couldn't get the gold. Later, the U.S. president voluntarily said he wouldn't be bound to gold anymore; what would he be bound to? To the world's lifeblood, binding it to oil, and the dollar is linked to oil, which must be settled in dollars. Then, through the anchoring of oil, the U.S. spreads its dollars around the world.
Ah, now it seems that oil is also becoming less reliable, the binding to oil seems to be increasingly unstable, it's not working anymore, but I can't repay my debts, what should I do? The U.S. is deep in thought, and then suddenly discovers, oh, virtual currency Bitcoin, right? The value of Bitcoin is used as the next digital asset anchor for the dollar, using it to absorb a large amount of U.S. debt and excessive money supply, this is good, and there's not much entropy increase.
Thus, you see companies in the U.S., from BlackRock and Grayscale to the recently popular MicroStrategy, accumulating a large amount of Bitcoin, right? So why do some Wall Street analysts say that Bitcoin could reach $1 million each in the future? Many ordinary people think it's crazy, how could that be? What value does it hold at $1 million each? Ten years ago, you could buy a pizza for 100 Bitcoins, right? So what's the logic behind $1 million? What is the functional logic? Don't think about these functional logics, and don't think about replacing the dollar logic; these logics are useless. What's important is that it has fulfilled the role of a strategic reserve for potential dollars. When you realize this point, that $35 trillion in U.S. debt needs Bitcoin to act as a reservoir, you will understand that $1 million each is not expensive! Yes, it's like China's real estate.#特朗普上台概念币有哪些？ $BTC #本周微策略是否继续增持BTC？
