Why is Bitcoin so scarce (Why does Bitcoin have a market)?

Why is Bitcoin so scarce? From 2013 to early 2017, with more and more people investing in cryptocurrencies and ICO projects, the entire cryptocurrency market underwent tremendous changes. However, there are also factors that have led to a significant decline in cryptocurrency prices: firstly, the uncertainty of the global regulatory environment; secondly, people’s excessive trust in Bitcoin; thirdly, governments of various countries have had to close some national banking operations to avoid crises while dealing with economic recession, so in this situation, most people were unaware of their funds being stolen or lost.

Although these events have caused significant psychological damage to investors, ordinary people still need to know how to use digital assets for payments and transfers. If we want to have a comprehensive understanding of digital assets, their underlying principles, technologies, and related applications, we must find ways to understand the risks involved and make appropriate investment decisions to achieve this goal, making our investments simple and convenient.

This article will explain what Bitcoin is. In fact, this term is very similar to Bitcoin itself because it was created to solve some fundamental problems in current society, hence the term “Bitcoin.” Bitcoin was born in 2009, and at that time, many people speculated about what Bitcoin was and how much its value would decrease. After a few years, some unreasonable situations arose due to various reasons. For example, when someone regarded digital gold as a security, “sell your coins,” he thought it was a good thing. “I still don’t know if Bitcoin is truly useful.” There is a theory that “Bitcoin is like a diamond… It is a bar of gold that fills everything – as long as there is a big bullish trend, there is a golden circle,” or another theory called ‘blockchain.’ However, some people also argue that although Bitcoin can be used for transactions, that does not mean it actually exists and is unaffected by any form of economy, but rather it is merely a means of selling a new commodity. Of course, some people might say, “Maybe this is the only virtual thing in the future world?” The reason why Bitcoin has become mainstream is mainly due to its limited supply (also known as total supply). And because it lacks practical use cases, issues surrounding Bitcoin will continue to receive widespread attention. Decentralized cryptocurrencies like Bitcoin are the same since they are just a special computer system running on the Internet. However, not everyone wants to know that since Bitcoin has a certain level of anonymity, its network security issues have not yet been effectively addressed, which determines its vulnerability. Once hackers attack and make Bitcoin irrecoverable, what should be done then?

Why does Bitcoin have a market

According to CCN’s report, the price of Bitcoin has increased from $28,000 on June 1st to over $100,000 on September 15th. Despite this, it still faces significant price volatility and a decrease in transaction fees. According to a report published by BitMEX Research, by the end of November 2018, nearly $4 billion had flowed into the platform compared to around $3 billion in the same period last year. In addition, for most of 2019, the demand for cryptocurrencies seemed to be low. But now the situation is improving because the Bitcoin market remains stable. Why do people pay attention to Bitcoin? It depends on how they perceive the market value of Bitcoin changing.