Bitcoin soars, what is the real meaning behind it?

The core reason is that the understanding king came to power and gave virtual currencies a big gift, promising to relax regulations on virtual currencies.

So, why did the understanding king raise this hand for virtual currencies?

Many people believe that virtual currencies, such as Bitcoin, are decentralized currencies, not sovereign currencies, independent of sovereign currencies, and not affected by the general currency system. But in reality, this is not the case.

The actual attribute of Bitcoin is an asset pool for storing dollars, an auxiliary tool for maintaining the global dominance of the dollar as a core currency.

Especially when the dollar is depreciating and there is an excess of dollars in the market, the role of this tool becomes particularly obvious. What is the role of this tool?

On one hand, Bitcoin, as a pool for accommodating currency, can continuously absorb the surplus dollars that are overissued;

On the other hand, Bitcoin also has the effect of suppressing other assets, because once a large amount of dollars floods into the market, there will inevitably be funds wanting to flow out to other countries and assets.

If Bitcoin can attract funds through price increases, then the flow of dollar capital will be changed.

When everyone buys Bitcoin, the outflow of dollars from the United States to other countries' assets and commodities can be avoided.

Especially now, the two biggest enemies of the dollar are the Renminbi and gold.

Bitcoin has become a protective wall for the dollar, keeping funds within the safe zone of the dollar.

Understanding this is crucial to comprehend why Bitcoin has been so hot recently. And

why when Bitcoin rises, the prices of the Renminbi and gold cannot increase.

Bitcoin is the first step for the understanding king.