Impacted by the new coronavirus epidemic, the worth of bitcoin and other “digital coins” plummeted, and costs fell two-thirds within every week .
The world must understand that they need “digital gold” and not strong investments or safe havens.
they ought to be completely obviate the illusions of varied “digital currencies” and have a transparent and accurate recognition of currencies know.
On March 12, the speed and harm of the spread of the new coronavirus epidemic within the world (especially the us and Europe) exceeded the expected impact, and therefore the global stock exchange plummeted.
after experiencing the tragic performance within the face of the impact of the epidemic, does anyone still believe that Bitcoin is “digital gold” or a true “digital currency”?
Bitcoin once established a mechanism for highly imitating gold (gold reserves on the world are limited, intuitively, the harder it’s to dig within the future, and therefore the new addition will gradually decrease until it’s completely depleted).
21 million, the staged (every ten minutes) output is fixed (through “mining”, and therefore the newly added amount is automatically halved every four years until the top of 2140) Therefore, the bases are combined into the system using a decentralized block chain technology
the joined nodes jointly run the system and maintain the principles to jointly verify and record the acquisition, transfer and distribution of all bitcoins, thus forming a decentralized, open and transparent, traceable source” Difficult to tamper with distributed ledger system
As a result, bicoin its taken into account by many of us as “digital gold” and can be ready to overcome the excessive manipulation of the national sovereign currency by the govt or monetary authorities, and it’s easy to over-promote, leading to a pointy devaluation of the currency and even causing serious inflation or financial crisis.
Shamelessly robbing people of the legal wealth represented by the cash held by them and looting them, truly maintaining the independence fairness and holiness of the currency, and becoming a true “digital currency” and since of its “regular halving” mechanism, Not only will Bitcoin not depreciate, but it’ll automatically increase its value thanks to the regular halving of latest production
Therefore, it’ll definitely subvert and replace the normal national sovereign currency, which has huge economic and social value, and therefore the sooner it can participate in it , the better it’s to get and therefore the more room for appreciation.
This makes people filled with imagination and expectation of Bitcoin, and indeed enhances its attractiveness and MLM power.
As more and more people participate, especially on the idea of Bitcoin, more and more network “digital currencies” like Ethereum and therefore the “Initial Currency Issuance (ICO)” of network digital currencies are launched
After the appliance scenarios of Bitcoin, the costs of “digital currencies” like Bitcoin and Ethereum began to rise rapidly overall, and their social impact continued to expand
Especially in 2016, many central banks declared that they might study and launch the “Central Bank Digital Currency (CBDC)” as soon as possible, which made many of us think that it’s the new “digital currency” like Bitcoin that has formed an enormous impact on the national sovereign currency The impact forced the financial institution to rush to launch its own digital currency, and thus more believe that bitcoin and other “digital currencies” have great value.
With the rapid increase in ICO, the worth of bitcoin and other digital currencies has risen sharply. 200 US dollars, which has risen to just about 20,000 US dollars at its peak in November 2017.
During this process, the mining and speculation of coins has become has been at the forefront of the planet , . subsequently halted the digital currency transaction and its liquidation of funds
But its global boom continues until it peaks in November As more countries strengthened ICO control, the worth of Bitcoin continued to fall from its peak in November, and by the top of 2018, basically hovered around 4,000 US dollars.
Such a pointy price drop could have caused many of us to be alert, but it had been more interpreted as a results of hard supervision or suppression by central banks and other authorities. Periodic declines don’t represent their true value.
By 2019, more and more large institutions, including JPMorgan Chase Bank, WalMart and Facebook, have made announcements, claiming that the appliance of blockchain technology are going to be linked to the equivalent of fiat currency or structurally linked to multiple fiat currencies. “Stablecoin”, which once more inspired people’s enthusiasm for the “digital currency” like blockchain and Bitcoin, the primary to use blockchain technology, plus Bitcoin will inaugurate a replacement incremental halving by May 2020 many of us began to increase leverage before expanding their positions, pushing their prices to heat up again. By the top of 2019, that they had exceeded $ 12,000.
By the top of the year, suffering from some factors, they basically hovered at the extent of quite $ 8,000. Entering 2020, once more exceeded 9000 US dollars, some people think that it’s expected to hit a record high within the year.
But what happened was contrary to expectations.
The unexpected new crown epidemic once more brought the worth of bitcoin back to its original shape, and fully exposed that bitcoin can’t be like gold.
it’s a robust value-preserving effect and may become a crucial safe-haven asset. Finally, What are often avoided remains gold and therefore the debt and currency of the foremost important countries.
In fact, although Bitcoin highly imitates the mechanism of gold, it’s not really gold in the least , but only digital “virtual gold” or “virtual assets”.
At an equivalent time, this type of design that completely sets the entire amount and therefore the staged output beforehand , and therefore the staged output is halved periodically, without room for regulation, makes it difficult for the currency circulation to correspond to the dimensions of the tradable social wealth.
At an equivalent time, the shortage of state Sovereignty and legal protection mean that there’s no guaranteed social wealth to use bitcoin for transactions, which can inevitably make it difficult to take care of basic currency stability. It completely violates the elemental positioning of cash as a worth scale and therefore the basic logic of its development and progress
it’s impossible to exchange the country. Sovereign currency becomes a true currency, at the most it can only be a special virtual asset, or a business circle or community currency which will only be used within a selected range.
they’ll become the target of speculative speculation, but their prices will inevitably go up and down, with great financial risks. an equivalent is true albeit blockchain technology is employed to launch a “stable coin” that’s linked to the equivalent of a particular fiat currency. It can only be a token
Structurally linked designs with the prevalence of fiat currencies (such as Libra) are essentially for creating a super sovereign coin, which is more incompatible with the logic of the coin.
t’s impossible to coexist with its basket of currencies at an equivalent time, and it’s difficult to actually launch and operate effectively!
Based on the in-depth study of currency, once I began to heat up Bitcoin and blockchain in 2016, I clearly pointed out: Bitcoin cannot become a true currency and replace fiat currency; the financial institution cannot design consistent with Bitcoin and Ethereum and therefore the introduction of decentralized digital currency, “Central Bank digital currency” can only be the digitalization of fiat currency, that specialize in alternative cash, changes within the issuance and settlement methods; the event of blockchain must leap out of the paradigm of bitcoin mining and coining, Really specialise in solving practical problems
The long-form text of “The digital currency must be accurately positioned and effectively supervised” strongly involves strengthening the transaction of digital currencies like Bitcoin, especially the supervision of ICOs, which has caused great shock (controversy) and widespread impact. Since then, it’s been emphasized that the blockchain must be viewed and used effectively, and repeated emphasis on network “digital coins” like Bitcoin and stablecoins linked to the equivalent of one fiat currency cannot become real currencies. The publication of a “Libra” white book structurally linked to a basket of currencies on Facebook has made many of us confident about its issuance and impact
It even believes that it’s going to strengthen the international status of basket currencies like the US dollar and should have an enormous impact on the renminbi. The renminbi should be added thereto or encourage Chinese companies to issue similar digital currencies. The flag clearly stated: “Libra is difficult to become a super-sovereign world currency, and it’s going to not even be successfully launched.
During the Spring Festival of 2020, a series of explanations on the “Credit Currency Analysis” were launched on the WeChat public account. The third a part of the “Basic Judgment of Various‘ Digital Currency ’s “again elaborated and emphasized relevant views
Under the impact of this epidemic, the worth of bitcoin and other “digital coins” plummeted should make people fully realize that they can’t become “digital gold”, nor can they become strong currencies or safe-haven assets.
I completely got obviate the fantasy of “digital currency”, and have a transparent and accurate understanding of currency