What has affected Bitcoin (the scope of Bitcoin’s influence has expanded)

What affects Bitcoin as a decentralized Cryptocurrency has changed a lot in the past 12 months. With more and more attention paid to the digital asset industry, various investment methods have changed, and some even believe that this technology can completely overturn the existing financial system. But for those who are not familiar with Bitcoin, there are also some misunderstandings and confusion, including views on the future of Bitcoin and some influencing factors behind it. (Of course, many of the problems we see now do not come from the impact of prices, but rather from changes in market sentiment.) So what exactly causes the price changes of Bitcoin? There are several main reasons for this: firstly, Bitcoin is a means of storing value, and its value is usually based on supply and demand relationships (such as demand), supply/supply, or inflation rates. Second, with the outbreak of the COVID-19 and the global economy falling into recession, many national central banks are also considering adopting a stricter approach to deal with these events; Thirdly, the transaction costs on the Bitcoin network will increase (as the more coins miners dig up, the less profits they earn), which also means that the transaction costs on the Bitcoin network will correspondingly increase. The fourth aspect is that there is not enough cash in the Bitcoin network to support the Bitcoin blockchain network, so users need to pay higher network fees to maintain the security and reliability of the on chain verification process

Bitcoin’s Impact Expands Again

Editor’s Note: This article is from CoinTelegraph Chinese (ID: CoinTelegraph), authored by JOSEPHYOUNG, and reprinted by Daily Planet with authorization

In the past three months, Bitcoin (BTC) has been affected by the growing demand of mainstream media and institutions for Cryptocurrency. Since the beginning of this year, Bitcoin’s popularity has surpassed other asset classes such as gold, bonds, real estate, and stocks, which may indicate that as more people enter the field, the cryptocurrency market may further expand and generate new financial products or business types However, the trading volume of Bitcoin has increased in recent quarters, but the scope of this impact is still relatively small. According to Glassnode’s data, for most of May, the average income of miners was only around $25 per transaction. In addition, since mid March, the number of ‘non zero’ addresses has been steadily increasing, from approximately 3 million to 40 million Although the price trend of Bitcoin is not always surprising, many analysts predict that this number will continue to rise – at least in the short term. However, if Bitcoin prices skyrocket or plummet again, it may lead to a larger macro trend. Bitcoin reached a historic high of nearly $70000 when it reached its peak at the end of June, and then quickly fell back to its recent lowest level. In the coming weeks, some experts have stated that Bitcoin is in a “widely accepted stage” and its value will remain strong Nevertheless, Bitcoin is still a very young emerging thing. Bitcoin is becoming a new type of asset, “supporters of Bitcoin say

Bitcoin is more attractive than traditional investment goods. Before February 2020, people were excited about the idea of bitcoin as a means of payment: “I think we are now at a stage where bitcoin has really changed our financial situation for the first time.” Since bitcoin is a scarce and alternative digital form, it can be used for various purposes, including promoting Economic freedom and reducing volatility, To drive the world to become more digital However, when considering the current development of Bitcoin, there are differences in whether there are still some expectations for the future of Bitcoin Last month, a Twitter user pointed out that the similarity between Bitcoin and gold lies in its supply limit of 21 million pieces, and the current market price of gold during the same period is far below the $1 trillion mark.