Why Bitcoin is Emerging (Why Bitcoin has Rises and Falls)

Why is Bitcoin emerging? Why is Bitcoin emerging? We all know that since January 4, 2009, the term “store of value” has been widely used. It can be used to store and exchange various forms of currency (such as gold, dollars, etc.) and achieve decentralization through encryption technology. In this case, blockchain technology can ensure the security and traceability of transaction information. Due to these characteristics, blockchain has the advantage of high anonymity.

Over time, more and more individuals have started to accept Bitcoin and other digital assets as a payment method or investment tool, leading to an increase in demand for Bitcoin. Although people are currently researching and exploring how to create similar applications or applications to meet the growing user needs, it seems meaningless to those who do not understand this technology. There are many reasons why Bitcoin emerged: firstly, its development speed is faster than ever. Secondly, it is the result of the combined action of many other factors. The third reason is that it can make it an interesting platform. Bitcoin is a novel and unique electronic cash system – although it was initially launched in the early 1990s, it has now been greatly improved. Many places in the world have bank accounts and they are all a new means of payment when dealing with large fund transfers. Bitcoin also has such flaws. Because a solution to support network effects has not been found. The fourth reason is that it cannot replace traditional legal currency. If Bitcoin is still a “virtual currency”, it will not be regulated as before. In addition, there may be a problem with a lack of necessary legal protection, or they may not be able to comply with existing regulatory requirements, such as anti-money laundering laws, etc. Therefore, most countries will adopt different methods to review or restrict the use of Bitcoin.

So it is normal for any situation to eventually change our lives, and we need to constantly improve our vigilance to ensure everything is safe. Of course, it is also possible that the governments of some countries will exert pressure on Bitcoin in the same way. However, the fact has proved that countries have not completely given up their efforts. Essentially, President Trump of the United States recently signed a letter indicating that he wants to restore his economy to its pre-crisis level, and US Treasury Secretary Mnuchin believes that this is inevitable. Finally, US financial institutions have been actively seeking new ways to deal with crises.

Why Bitcoin has Rises and Falls

Since the birth of Bitcoin, it has been a topic of discussion around digital currency. As the market becomes more and more popular and mainstream attention, Bitcoin has gradually become the focus of attention, and even many people have begun to question whether the price of Bitcoin can really rise to $10,000? Why do so many people buy and hold it? Because in bullish markets, there are cases of plummeting, liquidation, etc. when the price of the currency rises? Let’s talk about these issues today.

First of all, let’s take a look at what is meant by “rises and falls”. If we say that January 12, 2017 is the first time Bitcoin broke through the $10,000 mark, and now it is already in February, then at the end of April this year, in early March 2019, the price of Bitcoin returned to above $10,200. Many people found this time to be too crazy and thought it was just speculation. But in fact, many investors actually know that when Bitcoin soars to over $20,000, it often experiences large fluctuations after a brief rebound, but the decline does not last long, but there is an obvious upward trend. Of course, some people do not look favorably on this trend and believe that BTC is still in a bubble stage, so they choose to wait and see or sell their chips instead of buying at a high price. In addition, recently due to the epidemic, the US economic situation is severe. Federal Reserve Chairman Powell has stated that the inflation rate is close to 4%. However, he also pointed out that one important challenge currently facing the global financial system is interest rates. Therefore, in the future, governments of various countries will take more measures to support economic growth while regulating cryptographic assets. (Mars Finance)