The world's top three investment institutions BlackRock, Vanguard Group, and State Street Corporation have all issued BTC ETFs. The US government is hoarding BTC. Many small countries use BTC as legal tender. Many top tycoons have begun to gradually transfer their assets to BTC, as BTC is the first application of blockchain technology that has generated a global consensus. Why do these people start to transfer assets to BTC? First of all, we need to figure out what the troubles of these tycoons are.
Almost all businesses owned by top tycoons are mixed with political struggles and gray industries. Behind the bright and beautiful appearance is the endless annihilation of human nature and the complete desecration of life.
Anyone who has seen the movie "The Wolf of Wall Street" knows that although the protagonist played by Leo made a lot of money by selling junk stocks everywhere, he still had to transfer cash to Swiss banks through various channels. In the end, his assets were frozen by Swiss banks, and his luxury cars, airplanes, mansions, shares and other valuable assets were seized by the US government, and he eventually became a poor man overnight. The red-top businessman Hu Xueyan spent 20 years working hard to become rich enough to rival a country, but it only took him 3 days to become a pauper.
This tells us that under the existing social system, government power is above everything else, and all your assets are under surveillance, no matter if they are famous paintings, antiques, cars, houses, airplanes or securities, the government can take them away or freeze them at will, no matter if it is legal or illegal. In short, power is above everything else, and power is constantly alternating. You can never guarantee that you will always be on the side of those in power, so when you are faced with a reckoning, how can you guarantee that your assets will not be wiped out?
So why are these wealthy people willing to transfer their assets to the blockchain? The main reason is that the blockchain has the following characteristics:
1. Decentralization
Let's first talk about what centralization is. Anything controlled by an individual or organization is centralized, such as government agencies, stock exchanges, banks, etc. These institutions were originally created to centralize management and improve efficiency. When this social civilization develops to a high degree of freedom, these institutions have become a tool for a small number of interested groups to reap the interests of the majority.
Blockchain technology does not rely on additional third-party management agencies or hardware facilities, and has no central control. In addition to the self-contained blockchain itself, through distributed accounting and storage, each node realizes self-verification, transmission and management of information. When you transfer your property to the blockchain, only you can dispose of your property through a unique key, and no one can touch your private property.
2. Scarcity
As the first application of blockchain, the total amount of BTC is constant, only 21 million, and no new amount can ever be issued, so BTC is known as "digital gold".
Three: Independence
Based on consensus-based specifications and protocols, the entire blockchain system does not rely on other third parties. All nodes can automatically and securely verify and exchange data within the system without any human intervention.
Four: Security
As long as 51% of all data nodes are not controlled, network data cannot be manipulated and modified at will. This makes the cross-chain itself much safer and avoids subjective human data changes.
Five: Anonymity
From a technical point of view, the identity information of each block node does not need to be made public or verified, and the transmission of information can be done directly anonymously. In other words, your property is only stored in a piece of code. Except for you, no one knows who the property belongs to. The safest situation for a rich man is when no one knows that he is a rich man.
Aren’t the wealthy afraid that BTC will become zero overnight? Why does BTC have value?
BTC (Bitcoin) value:
Now that we understand the essence of "blockchain" and know that BTC is the first application based on blockchain technology, do you know why "BTC" is valuable? Is it so valuable?
The general answers are as follows:
First: Because it appeared the earliest in the blockchain field.
Second: Because its total amount is constant, it will be halved every 4 years
Third: Because it is safe enough and not regulated by any country or government
Fourth: Because some countries and regions have already recognized that it can be used for consumption, shopping, etc.
In fact, the above points are not the essence of its long-term existence. First of all, we must understand where the source of its application scenarios and application groups is. Because it is the earliest currency based on blockchain technology, it fully complies with the five characteristics of blockchain. Secondly, if it is to have value, it must first have application scenarios and consensus groups. This group of earliest people are the big names in the black money industry all over the world (walking, drug trafficking, arsenal, money laundering, etc.). So it has value. The fundamental reason is that there is no centralized supervision and it is encrypted. And this group of people just don't want to be supervised by any country, government or centralized institution.
At this time, if we assume an extreme situation, if 95% of people do not agree with the value of BTC, will BTC directly become zero? Of course not. The value of BTC only needs to be recognized by the rich. Its value never needs to be recognized by ordinary people. As long as BTC can circulate among the rich, it will become more and more expensive, because these 5% of the rich control 95% of the world's wealth, and most of the 95% of ordinary people are blindly following suit.
Brothers who read this article carefully, we can chat together, share experiences, study the knowledge of blockchain, and find out where the coins that will increase hundreds or thousands of times in the future are. I hope we can witness and grow together.
