Many people question the value of Bitcoin, so much so that there were many transactions when the Federal Trade Commission passed the Bitcoin ETF. Although cryptocurrency or digital currency is recognized as a tradable asset in most countries and regions around the world, it has never been considered a currency, but its unique hedging properties have been recognized by more people. From a realistic perspective, the cryptocurrency market also plays the role of a capital reservoir as a financial market. When sovereign credit currencies in the real world are over-issued in large quantities, Bitcoin, because of its decentralized characteristics, will naturally enter people's field of vision as a trading target. With extremely low transaction costs and borderless characteristics, the Bitcoin market will have extremely strong liquidity in the future. This is incomparable to traditional real estate and other targets. Ironically, as a pioneer in rebelling against centralized currencies, Bitcoin actually serves as a reservoir for the over-issuance of mainstream currencies, but in this process, the two sides reached a handshake and made peace.
In contrast, the anonymity of Bitcoin is no longer criticized in the context of strengthened supervision, because as the price of Bitcoin increases, the cost of Bitcoin transactions on the chain naturally increases, and large amounts of cash converted into legal currency inevitably need to go through real-name centralized exchanges or traditional financial institutions, which means that if Bitcoin is used to purchase real assets, it is difficult for traders to hide their identities. On the contrary, the larger the transfer, the easier it is to be noticed on the chain. Therefore, I think the decentralized nature of Bitcoin will obviously not prevent it from being legalized by more countries, and this is indeed the case. I believe that most countries are aware of this.
But there is another problem with Bitcoin. If Bitcoin, as the dominant party in the world market or the isolated and absolutely disadvantaged party, forms a single global asset market, this will allow many sanctioned countries to circumvent sanctions and secretly participate in the global goods trading market through this market. However, for countries that need to strictly control currency exchange rates, if it is legalized, their means of regulating exchange rates will almost become ineffective, and possible capital flight will not be prevented. This is unacceptable, so it naturally cannot be legalized.
But it all comes down to one thing. Any market is made up of buyers and sellers. It is fine if you can only buy but not sell. It is against the laws of nature if you can only sell but not buy. If the market liquidity is exhausted, it will be difficult to generate profits. In essence, it is in name only. In this sense, in the past, the globalization of finance was often composed of multinational financial companies, enterprises or qualified investors with relatively abundant funds. Digital currency gives ordinary people an opportunity to directly participate in the global financial market. Digital currency led by Bitcoin provides ordinary people with an opportunity to participate in the global financial market with a very low entry threshold. At the same time, due to the participation of ordinary people and the trading group dominated by irregular troops, the entire market sentiment and performance are very extreme, and fomo, ups and downs are extremely exaggerated. In this way, the volatility of Bitcoin and Ethereum will become much smaller after the entry of ETFs, and it is difficult for other altcoins to have drastic changes as before. Perhaps this is why many people think that this is the last bull market of cryptocurrencies.