What is the core value of Bitcoin? Why do virtual things rise?
What is the core value of Bitcoin?
1. Decentralization: The Bitcoin network has no central control agency, and all transactions are verified by miners and nodes around the world to ensure transparency and security.
2. Scarcity: The total supply of Bitcoin is fixed at 21 million, and it cannot be issued at will, and is not affected by the monetary policy of the central bank.
3. Immutability: Blockchain technology ensures that transaction records are open and transparent, and once confirmed, they cannot be changed or deleted.
4. Anti-censorship: Due to the decentralized structure, it is difficult for any individual or institution to unilaterally freeze or block Bitcoin transactions.
5. Global circulation: It is not restricted by countries and regions, and anyone with an Internet connection can use it.
What is the real reason for the rise of Bitcoin?
1. Supply and demand relationship: The total amount is fixed, and the block reward halving mechanism leads to a decrease in supply, while demand continues to grow, and prices naturally rise.
2. Institutional entry: More and more institutional investors such as Grayscale and MicroStrategy have included Bitcoin as part of their asset allocation, driving market confidence.
3. Inflation hedging: Global central banks are printing money on a large scale, leading to the depreciation of fiat currencies. Bitcoin's limited supply attribute makes it a "digital gold" to fight inflation.
4. Technological progress: Lightning Network, SegWit, Taproot and other technical upgrades make the Bitcoin network faster, cheaper and safer, promoting the development of the ecosystem.
5. Regulatory recognition: The regulation of countries such as the United States has gradually become clear, and El Salvador has even made Bitcoin a legal tender, which has increased market trust.
6. Payment and application scenarios: More and more merchants accept Bitcoin payments, and payment giants such as PayPal and Visa have also begun to support Bitcoin transactions, expanding the actual application scenarios.
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