Bitcoin: the speculative bubble or the future of money

During the 2008 financial crisis, all national central banks relied on income and water resources to counter economic and trade pressures, but the crisis continued to weigh heavily on the difference between the rich and the poor in the world. the world. People worried about the financial management of central banks. Bitcoin's father, Satoshi Nakamoto, wanted to change this state, which is why in October 2008, he published the Bitcoin white paper and unearthed Bitcoin's first block, the “Origin Block”. So far, Bitcoin, as a distribution, has gained a shared peer-to-peer network and trust, and has entered a historic milestone based on blockchain-based technology. Since Bitcoin has become the target of similar commodities due to its rapid exchange rate, with heavy crackdowns and restrictions by regulators in many countries for no apparent reason, policies such as the financial system and the real estate sector.

Bitcoin standards have risen and fallen in recent months, and from the global financial market to the environment, Bitcoin has become one of the hottest talking points in the world.

M. CEO of RedBlock, a leading one-stop-shop integration and financial technology brokerage in digital assets. Zhou Yifan was once again invited to attend a talk show hosted by New Financial News, Anbo Tianxia. Yang Dahao, co-founder of Gyro Technology. The three parties discussed whether Bitcoin can represent all digital currencies, which causes Bitcoin to rise and fall rapidly, and whether the crypto digital currencies represented by Bitcoin can hold it for the future.

In that case, we'll need to revise the content related to "Bitcoin: The Mouth or the Future of Money", so be sure to read it.

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Amber World: Some of my friends already know bitcoin, but there are still a lot of friends who don't know much about bitcoin. So I want to ask you two to define Bitcoin.

Monday:

When it comes to Bitcoin, most people think of it as a coin or currency, but I think it's a plus. Bitcoin has liquidity, turnover, and asset value, and is a large dimension of asset value. Therefore, it is not enough to simply translate Bitcoin into a base currency.

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MB World:In fact, many of you, including me, must have heard the word Bitcoin over ten years ago. As you deepen your understanding you will hear many new words such as "mining". Then tell us the story of Bitcoin.

Yang Dao:

I think Bitcoin can be understood through gaming from a visual perspective. One can imagine that there are some games unfamiliar with the theme, players can play the game and get rewards by clearing levels. This mechanism is very close to Bitcoin mining. Mining is a mathematical problem, i.e. the process of solving an algorithm, and can be understood as a mathematical problem. As the number of participants continued, it gradually became a commodity or an asset.

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MB World:If you are an ordinary trader who wants to follow the development of Bitcoin or interest, how should you invest?

Monday:

Investors who are unable to assess the value of these assets and do not understand the main reasons should choose a business based on a larger investment. The entrepreneur must choose carefully. Still, it's a good idea to take the time to do your homework and understand the reasons for investing. You need to do both of these tasks so that we can take you to the next step. Whether investing in Bitcoin or other digital crypto currencies, the average trader should be careful to understand and assess the authenticity and trustworthiness of the businesses behind crypto digital currencies and other rights.

Yang Dao:

From another perspective, Bitcoin really belongs to the C side (user side). However, there are some indications of the functionality of the blockchain. People who have no idea to invest, have no knowledge of risk and are unable to prevent risk blindly follow the pattern and believe that the value of Bitcoin will rise further. , lack of judgment and choice, and this is the most dangerous part of investing. However, in fact, cryptocurrency investments come with a lot of uncertainties.

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MB World:For over ten years, since Bitcoin's first appearance, users have been able to do this on their own. Now how are you?

Yang Dao:

The rule of thumb of the "game" is that only the user completes the problem before receiving the reward. Now you can mine on computer or cell phone with good services, but it may take a long time to reap some benefits. Institutional level miners have emerged to improve competition.

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MB World:As a digital commodity and digital value, is Bitcoin at risk of being stolen?

Yang Dao:

The cost of theft is very high, so the cost is less than it comes.

Monday:

For Bitcoin, there are now very mature custodians. For example, Switzerland obtained eight licenses to store digital assets in December 2018. Schools are not only recognized for storing real money, gold, etc., but also paying attention to digital assets such as Bitcoin.

SEBA Bank, which has a close relationship with RedBlock, purchased $ 500 million in insurance, including asset management services, and their servers were also acquired deep in the Swiss mountains.

In addition, SEBA Bank specifically hired a hacker who attacked the security of the New York Pentagon as a service designer to ensure the security of all services. You can see that the whole process is starting to show signs of change and change.

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MB World:China, along with China, which has yet to fully recognize and recognize Bitcoin as a legal entity, is looking for better ways to improve and trade Bitcoin to create its platform that can be exposed to the sun and Moreover. Clear financial products and costs. This process will take time and will require some organizations to continue to build trust and improve the protection of laws and regulations. In fact, our national banking system is always constantly evolving, exploring, improving and adapting to recognition in a larger environment. Now that there is so much untapped capital flows in today's global financial system, what's the disaster or the effort?

Monday:

This is the case a long time ago, where Bitcoin, for example, was used as a medium for dark website trading and money laundering. However, surveillance in many countries is now starting to tighten. In fact, the standardization of the current market as a whole is also responsible for increasing the value of Bitcoin. As more and more large organizations are involved and the blockchain process continues to improve, the involvement of administrators and administrators has created greater confidence and confidence in the development. Confidence is the price. If the number of people you trust increases, its value will increase, and if the number of people you trust continues to decrease, its value will decrease.

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MB World:Do you think Bitcoin is safe during its lifetime?

Monday:

As the process continues to improve, we believe Bitcoin will be more secure. Compared to real money or other commodities, Bitcoin is also more stable.

Yang Dao:

I agree with Yifan. We believe that Bitcoin is more secure than any existing asset.

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MB World:In the second half of last year, the price of Bitcoin has fluctuated like a roller coaster. What causes a major change? What is the rationale or the cost of investing in Bitcoin?

Monday:

I think the stagnation in 2020 might be due to some reason that the big whales (places, people, or giant bitcoin holders called big whales) were sending jobs that were either flooded or destroyed. However, this situation is rare in practice and may be due to the involvement of certain organizations like Tesla. After all, Elon Musk is KOL with a strong marketing presence.

Yang Dao:

Since Bitcoin is still in its infancy from birth until this year, its "wish" will change as a child. In fact, this is also consistent with the volatile minds of traders, who themselves cannot determine the price of commodities. Prior to this year, most of the investors who invested in Bitcoin were traders, and organizations also entered the market once. After the company enters the market, the value of Bitcoin will gradually stabilize. The Chinese stock market is more demanding than in the West, because venture capital firms like to speculate on groups and prefer to work quickly and outside the group. There is a preference for investments, for example long term holdings, so the uncertainty is minimal.

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MB World:As for Bitcoin-related topics recently, one wouldn't be mentioned: Tesla founder Elon Musk. He previously said: Compared to cash now, Bitcoin is not dumb money. What do you think of this situation?

Yang Dao:

Supposedly stupid money is really like a frog that does not move in hot water, with a strong sense of smell and slow reaction. Generally speaking, the sensitivity of the public and the audience as well as the understanding and sensitivity to inflation are not very high. With millions of dollars in Tesla cash, that could be a huge plus. Therefore, it is necessary to choose good assets in which to invest, which can be understood as a risky way to prevent future inflation.

Monday:

I think this compares Bitcoin to the traditional financial system. The United States still prints money, and indeed the central banks of many countries are very valuable. With so much at stake, how can we be sure that our posts are going to explode or collapse overnight? So I think Musk's comparison is a really good way to explain this problem from a more general perspective. A Bitcoin that is more reliable with respect to the power source or the state should be a Bitcoin decision made entirely by itself or by the market, not controlled by third parties.

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MB World:Was the previous surge in currency prices due to the influx of cash?

Monday:

In fact, all financial products are speculative in nature. Investing and speculation are not all separate terms, but the best assumptions. Investors can turn their thinking into an investment by carefully examining the policies and changing characteristics that affect their investment.

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MB World:What are the conditions for Bitcoin to evolve from a commodity to a true currency business?

Monday:

The more that a few people handle most of the money, they need to be further distributed and held by more than one person. In other words, designing different tools with functions such as industry, construction and management requires more capacity, greater integration, greater utilization, robust, multi-platform and multi- operational business. As more and more people choose to trust and hold Bitcoin, all assurances will become fair. On the site of greater diversification, this will result in what is called the financial cost. In view of all current developments, partner organizations and roles are constantly improving and Bitcoin is being developed in the process of systematization.

Yang Dao:

In fact, I think Bitcoin has started to reach this point. Now the whole world is engaged in these activities and "sports". In fact, a payment for friends has been created, and that is the identity of Bitcoin. So I think the biggest departure is time, not technology. Because time is the greatest value.

MB World:

This is true of the relationship between users and users, as the camps of Bitcoin supporters and opponents change frequently. Case in point: Bill Gates, who was once a strong supporter of Bitcoin, is now a member of the middle camp, and former Bitcoin enthusiast Elon Musk suddenly reinvests.

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MB World:What is the current vision of the world's largest companies in the Bitcoin industry?

Monday:

Overall, US and EU politics are open and Bitcoin is seen as a valuable asset.

In the United States, for example, the most famous grayscale has become the bridge on which bitcoin can still be traded. Investments like Bitcoin ETFs are no different from traditional money.

Money also fluctuates, so they are often bought by banks. The difference is that Bitcoin funds use Bitcoin as an asset in the next phase, while other funds use companies or options as assets.

Financial asset rules should apply to assets that already have financial asset assets, but the value of bitcoin can also be protected, monitored, and built into the tax system.

Now in the US you have to pay a fee to trade on platforms like Coinbase, and your income is taxed as well. Thus, it can be said that the Bitcoin market is included in the administration.

At present, China has yet to enact any factual laws, but given the control issues by some municipalities, it is considered a digital asset.

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MB World:Are investors at risk when trading Bitcoin investments in countries that do not or do not fully recognize Bitcoin?

Yang Dao:

Yes, conflicts that arise from investment firms are not protected by law if the regulations are not yet clear. In addition, fraud can cause disruption in the industry. Some countries have started doing more research into the value and finances of Bitcoin, and the speed of the research is directly related to the level of governance and governance it promotes.

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MB World:Do you think there is competition between central bank digital currencies and Bitcoin?

Monday:

Since they have different materials and functions, there is no competition between the two and I think there is a connection between the two. As discussed in a previous interview, when a digital bank and a bitcoin trading partner or special option removes open devices, the two interact but do not compete with each other.

Yang Dao:

The two see each other as a relationship, not a rival. For example, decentralization could allow Bitcoin to become the world's largest currency against the US dollar in certain futures transactions. This is a consequence of determining the existing thinking faculties, and the implications will be for a change. It is this relationship that is built.

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MB World:Bitcoin, which is trying to become a mature financial system, is still in the “baby” stage and hasn't received much recognition. What do you think we can do in the maturation process?

Yang Dao:

In order for Bitcoin to become gold in the digital currency industry, it inevitably has to stand the test of time, and there are many ways.

Monday:

I think digitization is an irreversible process. As the first representative of digitization, for example, the foundational cornerstone, Bitcoin will surely be acquired by many people in the future. However, the way to recognize and recognize it varies from country to country and from person to person.

Bitcoin's main goal is to gain the trust and approval of all, but there is still a long way to go before it can overcome everyone's temptations and improve upon the true law of the cost of finance. . .