Let’s briefly introduce some basic information about Bitcoin.
BTC, or Bitcoin, is the world's first and most popular cryptocurrency. It was launched in 2009 by an anonymous entity named Satoshi Nakamoto. Bitcoin runs on a decentralized peer-to-peer network, allowing individuals to conduct transactions without the need for intermediaries such as banks.
Here are some key points to understand about BTC:
Key features of Bitcoin (BTC):
Decentralization: Bitcoin transactions are verified by a decentralized network of computers (nodes) rather than a central authority. This ensures that no single entity can control the entire network.
Blockchain technology: Bitcoin transactions are recorded on a public ledger called the blockchain. This ledger is maintained by miners who verify transactions by solving complex mathematical problems. Once verified, the transaction is added to the blockchain and becomes unchangeable.
Fixed Supply: Bitcoin’s supply is capped at 21 million. This scarcity is intended to make Bitcoin a deflationary asset, whose value is likely to increase over time as demand grows.
Transparency and Security: All Bitcoin transactions are transparent and can be viewed by anyone on the blockchain. The use of encryption technology ensures the security and integrity of transactions.
Divisibility: Bitcoin can be divided into smaller units called "Satoshis", with one Satoshi being equivalent to 0.00000001 BTC. 1 Bitcoin is 100 million Satoshis, so this allows for microtransactions and makes Bitcoin accessible to a wider audience.
Market Impact and Volatility:
Price Volatility: Bitcoin prices are highly volatile due to its relatively small market size compared to traditional financial markets, as well as the influence of public sentiment, speculation, and regulatory developments. Large-scale transactions by “whales” (individuals or entities holding large amounts of Bitcoin) can also cause large price swings.
Economic Hedge: Bitcoin is often seen as a hedge against economic uncertainty and currency devaluation. It provides an alternative store of value and medium of exchange that is not controlled by any government.
Latest News:
Bitcoin Sales in Germany: Recently, Germany sold nearly $2.8 billion worth of Bitcoin seized from illegal activities. The sale, which took place from June 19 to July 12, 2024, created significant market pressure, with prices falling more than 7% in June. Market observers have questioned the timing and rationale for the sale, with most suspecting it was simply a move to manipulate the market and sell off prices.
Institutional Adoption: Companies like DeFi Technologies are increasing their Bitcoin holdings, recognizing its potential as an inflation hedge and protection against currency debasement. DeFi Technologies recently increased its Bitcoin holdings to 204.34 BTC and added other digital assets like Solana to its treasury.
Endorsement from financial leaders: BlackRock CEO Larry Fink acknowledged the legitimacy of Bitcoin as a financial instrument that provides uncorrelated returns. He described Bitcoin as “digital gold” and highlighted its potential role in a diversified investment strategy.
in conclusion:
Bitcoin (BTC) remains a key asset in the cryptocurrency market, with unique advantages such as decentralization, transparency and fixed supply. Despite its volatility, it is increasingly seen as an important component of modern investment portfolios and a hedge against economic instability.
Bitcoin is also the biggest consensus among people in the currency circle and the currency with the largest number of believers. I also believe that long-term holding will definitely bring blessings. Be a diamond hand and wait for new highs!
