Bitcoin hits a new high again, three questions to tell you.
Bitcoin is not a Ponzi scheme. The world's first decentralized digital currency was proposed by Satoshi Nakamoto in 2008. It not only has the intrinsic value as a digital currency, but also the market's recognition and scarcity, coupled with the unique characteristics of decentralization, make Bitcoin gradually recognized as an asset with investment value after many price fluctuations. At present, many countries, such as Japan, South Korea, the United States and Switzerland, have already accepted Bitcoin as a payment method.
From a legal point of view, Bitcoin is not the legal tender of most countries. At present, only El Salvador and the Central African Republic regard Bitcoin as legal tender, which means that in most countries, Bitcoin lacks the attributes of sovereign currency, has no endorsement of national credit, and has no government mandatory support. Due to the drastic changes in Bitcoin's price, it is difficult for it to perform the three functions of traditional currency - value scale, means of circulation and means of storage. The Chinese government has clearly pointed out that Bitcoin does not have the status of legal tender and cannot be freely circulated in the market.
Regarding its investment value, it is worth noting that many investors still regard Bitcoin as an attractive investment. Its total quantity is limited, and is set at about 21 million through a complex algorithm. This feature is similar to precious metals such as gold, which makes some people expect to profit from it. In addition, the blockchain technology behind Bitcoin provides decentralized and tamper-proof features, which has great application potential in many fields such as finance and supply chain. However, it cannot be ignored that the price of Bitcoin is affected by market sentiment, policy supervision and technological changes, so the investment risk is still high. This requires investors to carefully understand market trends, especially before investing.
In summary, the value and potential of Bitcoin still exist, but the risks involved cannot be ignored. What do you think about Bitcoin? Will it become a new monetary system in the future, or just a speculative tool? Welcome to share your thoughts!