Bitcoin (BTC) Price (10:00 AM)
There has been no update for a week, mainly because the market is rather dull, there is nothing much to say, and the money-making effect is relatively poor.
Today is the May Day holiday. As we know, the cryptocurrency market has no holidays, and it is open 24 hours a day, 365 days a year.
I’m updating my post today, mainly because of some big news and the big fluctuations in the market.
Zhao Changpeng was finally sentenced, which was better than expected, with only a light sentence of 4 months in prison. The news said that the judge read 132 letters of plea for mercy and was moved by sympathy. This is nonsense. Do you really think that billions of dollars were paid for nothing?
What’s interesting is that Bitcoin fell below $60,000 today, and it seems to be accelerating towards the bottom. A week ago, I said that Bitcoin would have a correction for several months. Zhao Changpeng’s judgment has nothing to do with Bitcoin falling below $60,000, it’s just a coincidence.
Some people also say that if Zhao Changpeng is in jail for 4 months, Bitcoin will fluctuate for 4 months before starting a bull run. This is even more nonsense. Zhao has already resigned, but he has retained his shares in Binance, and his influence is no longer the same.
I still stick to my original judgment. The market will continue to correct and will fall to around 55,000 before it will accelerate its rise.
Question of the Day: Why is Bitcoin valuable?
The value of Bitcoin comes from a variety of different properties. Ultimately, the value of cryptocurrencies and fiat currencies comes from "trust". As long as society trusts the fiat currency system, the currency will always have value. The same is true for Bitcoin: as long as users trust it, it has value, but there are more factors to consider.
These factors include the following:
1. Durability: As long as there is a computer maintenance network, Bitcoin is 100% durable. In fact, Bitcoin will not be destroyed like paper cash, and its durability is better than legal tender and precious metals.
2. Portability: Bitcoin is a digital currency, and its portability is self-evident. As long as you are connected to the Internet and have a private key, you can deposit and withdraw Bitcoin assets anytime and anywhere.
3. Divisibility: Each Bitcoin can be divided into 100 million satoshis, and users can conduct transactions of any size.
4. Interchangeability: Each bitcoin or satoshi can be interchanged with similar assets. This property promotes cryptocurrency to become a medium of value exchange on a global scale.
5. Scarcity: The supply of Bitcoin is limited to 21 million, and millions of them have been permanently lost. The supply of Bitcoin is much lower than that of inflationary fiat currencies, whose supply will increase over time.
6. Acceptability: Bitcoin has been widely accepted as a payment method by individuals and companies, and blockchain technology continues to develop.
A few people lack common sense and are prejudiced, doubting that Bitcoin is worthless, and even considering it a "scam" and a "Ponzi scheme", which is obviously unfounded panic. In short, Bitcoin runs on a very secure network and is given a very high value by the community, investors and traders.
