Why did Bitcoin rise from 0 yuan to 70,000 US dollars?
Have you ever heard of Bitcoin? From the initial few cents to the highest soaring to nearly 70,000 US dollars, many people may be curious: What is going on?
Blockchain technology is like a super-secure ledger that anyone can view but cannot tamper with.
Bitcoin is the world's first "digital currency" created using blockchain technology. It is completely decentralized and solves the trust problem of transfers. There is no fraud!
‼ ️Reasons for the surge in Bitcoin prices‼ ️
✅Scarcity
Bitcoin is designed to be fixed, with a maximum of 21 million pieces. This means that it has the same "scarcity" as gold and is called "digital gold."
✅Trust and consensus
Just like recognizing LV as a luxury product, more and more people recognize the value of Bitcoin and form a huge consensus. For example, the United States has now passed the Bitcoin ETF, which is equivalent to recognizing the commodity attributes of Bitcoin.
✅Big institutions enter the market
Some large companies and financial institutions have also begun to buy Bitcoin, such as Tesla, Square, MicroStrategy, etc. Especially when Musk announced that Tesla would accept Bitcoin payments, the market suddenly became very hot.
✅Macroeconomic factors
The global economic situation is uncertain, and many countries are printing money crazily, leading to currency depreciation. Many people regard Bitcoin as "digital gold" to fight currency depreciation and economic uncertainty.
✅FOMO effect (fear of missing out)
Speaking of this, you may have heard of the "herd effect". At first, many people thought that Bitcoin was worthless, but later they saw it rising continuously, and they were afraid that they would miss this opportunity to make money, so they hurried to buy it. This "fear of missing out" emotion also boosted the rise of Bitcoin.
✅Technology and infrastructure development
The continuous development of Bitcoin and blockchain technology, as well as the improvement of infrastructure construction around Bitcoin (such as exchanges, wallets, payment processing systems, etc.), have increased the actual application scenarios of Bitcoin and increased its value.
‼ ️However, the Bitcoin market fluctuates too much, and the rise and fall cannot be predicted. There are also occasional hacker attacks, and the supervision in many places around the world is not obvious, the risk is high, and pay attention to safety.
