That's right, Bitcoin - the gold rush of the digital age.
When it comes to Bitcoin, the community has already split into two camps:
Insiders: Bitcoin, a global digital treasure, with limitless potential.
Outsiders: Bitcoin? Just a Ponzi scheme, destined to turn into smoke.
As a veteran in the crypto circle, having experienced nine years of ups and downs, today I will discuss Bitcoin's value and the bubble surrounding it.
Before we delve deeper, let's have a little finance class: 'Bubble' Demystified.
A bubble, simply put, is when market prices drift far above actual value; that excess is the bubble.
Bubbles themselves are not scary; what's scary is the lack of regulation. If they get too big, with a 'bang', they explode.
In fact, bubbles exist everywhere in both the real and financial sectors. The bubbles in the real industry are digested by consumers, while those in finance rely on retail investors to absorb and offload to 'release the flood'.
Alright, the groundwork is done, let's get back to the main topic and discuss the 'gold content' of Bitcoin.
1. The Birth of Bitcoin
Back in the day, the pioneers of Bitcoin were all enticed by the 'dream of global currency'.
You see, now central banks of various countries print money as they please, and the people's wallets are quietly emptied.
What to do? Bitcoin has emerged, with a fixed total supply that cannot be printed more. Finally, the rampant issuance of currency that exploits the masses has found a 'brake'.
2. Can Bitcoin become a world currency? Wake up!
For currency to circulate, it must meet three criteria: stable value (Bitcoin: I have high volatility), easy to carry (this is okay), and strong liquidity (high transaction fees, weak liquidity, few users).
Clearly, Bitcoin is still far from being a true currency. Why? It’s not because programmers call the shots; the transaction fees are frighteningly high. If you want to know more, search for 'block size debate'.
Moreover, fiat currency symbolizes national power; can Bitcoin bounce around freely? Wishful thinking.
Decentralization? It's not easy to ban; unplugging cables, arresting programmers, there are many tricks.
Replacing fiat currency? Let's just say, anything can happen in dreams.
3. Is Bitcoin = Digital Gold?
This has already gone off the beaten path.
Bitcoin was not originally intended to be a 'digital vault'; it aimed to become a circulating currency.
As for the concept of 'digital gold', is it just a new rhetoric from capitalists, or is there something to it? Let's wait and see.
4. What about the price of Bitcoin?
Currently, apart from speculative trading, it has little else to offer.
World currency, digital gold? Just empty promises.
5. Why do people online say Bitcoin could rise to one hundred million?
The answer is simple: to fool newcomers into taking the bait.
6. What supports the value of Bitcoin?
Speculation, community belief.
Undeniably, Bitcoin's original intention was beautiful, but the reality is harsh. It has been manipulated by certain interest groups and is no longer that pure dreamer.
