Hello, brothers. I am trader Zhu Yici. Yesterday, I read an article about the Ponzi scheme, which triggered my thoughts on Bitcoin. What is Bitcoin? Is Bitcoin valuable?
What is Bitcoin? Decentralized ledger, blockchain technology, encryption algorithm, protocol, these are my impressions of Bitcoin. As a new concept, people are more attracted by the wealth myth it has created. As for what it is, most people, like me, cannot accurately define it. Of course, most people don’t care about this issue. We are more concerned about whether its price will rise or fall in the future.
So is Bitcoin valuable? In terms of cost, running algorithmic programs to mine them from the protocol requires huge investments, mainly consisting of mining equipment and electricity costs, which is very similar to gold, so Bitcoin is often called digital gold.
With the cost, the next step is to build consensus. Only with consensus can it be truly given value. Otherwise, it is a useless thing with huge costs. The initial consensus of Bitcoin comes from its natural advantage as a medium of exchange.
The first is its scarcity, with the total number of coins forcibly set at only 21 million; its anti-counterfeiting feature, as a product of a specific protocol, it is very easy to distinguish between the real and the fake; its infinite divisibility, the measurement of Bitcoin can be infinitely divided downward; its portability, as long as you run a specific program, your Bitcoin can be transferred to my encrypted wallet; its anonymity, the circulation of Bitcoin can only be traced back to the wallet address, but it is impossible to detect to whom the wallet belongs.
It is precisely because of these properties that Bitcoin has become a medium of exchange for gray underground transactions. The huge trading volume has led more and more people to accept it. The influx of massive funds has created the myth of Bitcoin making people rich. The money-making effect has inspired more people to pour in, completely opening up a spiral upward channel.
The approval of the Bitcoin spot ETF means that it has been officially recognized by the mainstream financial market. More and more countries are legislating for it. The consensus on Bitcoin is becoming stronger and stronger, even rising to the level of a national strategic asset.
One day, Bitcoin will become the world's currency in the true sense, and the digital gold of the new era is rising!
