Bitcoin: 'Digital Gold' still needs trading experience

Thinking back to 2017, most cryptocurrency traders will be able to understand the various negative behaviors of the great whales in the capital markets. It has been a great year for the two-day trading markets and the crypto markets as people have gradually increased their knowledge of Bitcoin. However, in 2018 Bitcoin fell almost 70% from its all-time high of $ 20,000. Value volatility is a result of uncertainty, and the hype surrounding blockchain has led to uncertainty.

Can Blockchain Eliminate Third Party Involvement? Can blockchain reduce border crossing time to seconds? Can Blockchain Reduce Penny Exchange Rates? Until the advent of Bitcoin in 2008, the blockchain described an almost utopian world that none of us could imagine. Satoshi Nakamoto's “Bitcoin: P2P Electronic Money System” describes the potential of personal trading in a joint venture. However, as the blockchain market has grown, the value of Bitcoin and cryptocurrencies has declined. This raises a question. What are the advantages of Bitcoin?

Bitcoin: money? eh ?

First, we define and compare money and money separation.As a medium of exchange, money has four components: portability, durability, divisibility and exchangeability. In addition to the cost savings, the money includes all of the above activities. Market at a price refers to the ability of an asset to hold its value over the long term.Gold is a good example of equal value. Gold has been popular for thousands of years because of its rare materials and beautiful properties. In fact, its application is limited.

"During the Great Depression of the 1930s, an ounce of gold could buy good clothes."

Fiat currency refers to government refunds.In fact, the US currency is also linked to gold. That was until August 1971, when US President Richard Nixon announced that the dollar would not be exchanged for gold. This is the famous "Nixon Shock" in history. The separation of the US dollar by the gold standard was concluded on the Bretton Woods Agreement. Since then, fiat currencies have entered a historical stage.

Due to the vague definition of the term “asset,” there has been controversy over whether fiat money is considered money.Most earnings hold their value for years, but analysis shows that all fiat currencies eventually revert to zero, and the US currency is no exception. . Since the creation of the Federal Reserve in 1913, the dollar has lost 95% of its purchasing power. A big event is the Bolivar Fuert of Venezuela, which will be discussed later.

From a business perspective, cryptocurrency is currency. In fact, it is by far the best money. The ability to become cross-border businesses quickly, inexpensively, anonymously and irreversibly has been passed down through human-generated income.However, given the volatility of Bitcoin, it is a very poor form of currency.

The collapse of the Venezuelan economy has made the use of cryptocurrencies popular.Venezuelans live in fear every day because they don't know how much money they have in their hands to lose value every day. The International Monetary Fund (IMF) estimates that inflation in Venezuela will reach 1 million percent by December 2018. Bitcoin will become a popular payment and investment asset due to its classification, movement and anonymity . In 2017, 1 Bitcoin could be bought for 34,000 Venezuelan Bolivars (VEF), but a year later it is worth 1.3 billion VEF. Meanwhile, Dash is rapidly gaining popularity in Venezuela, with over 500 merchants embracing the cryptocurrency. Dash is now seen as an advantage of Bitcoin due to the combination of masternodes, instant trading, and governance management.

However, the government is not supporting the cryptocurrency market, arguing that it directly affects government processes and the regulation of hyperinflationary markets.Ironically, the Venezuelan government has created its own “Petro” cryptocurrency in an attempt to combat piracy. , to, to, to, to, to, to, to Petro seeks to overturn U.S. sanctions and advance Venezuela currency, and the cryptocurrency was backed by domestic oil and minerals. However, he was criticized around the world for his poor performance and inaccurate images.

"If the value of money is tarnished by politics, it has become a good choice"

- John McGinnis et Kyle Roche, Wall Street Journal

Venezuela has found a compromise between countries that can accept cryptocurrencies as a means of payment for some.The growth of Venezuela's cryptocurrency is long overdue, but the free Bitcoin form "P2P Electronic Cash can be sent directly from one party to another".

As supply and demand increase, so does the price.Demand for Bitcoin only increases if the price stabilizes and the view shifts from Bitcoin to an asset investment in the currency. As more traders embrace cryptocurrency, we will see consumers increasingly wanting Bitcoin and other cryptocurrencies.Bitcoin, on the other hand, is called digital gold by many and is considered a major haven for governments and the financial community.At the Upfront Summit 2018, Fundstrat Global co-founder Thomas Lee explained the distribution of nirvana data based on the decline of Bitcoin with industry and financial markets and the relationship between gold and l 'Bitcoin money. However, many retailers and businesses avoid it due to its volatility.

Is the cryptocurrency supply untreated? Well, the answer is both yes and no. Yes, because the material of a part is fixed. For example, Bitcoin's total assets are capped at 21 million. However, all the coins in the cryptocurrency market are almost endless. As a result, the money entering the cryptocurrency market continues to be diluted with the addition of coins, if not potentially rising in the value of Bitcoin. Anyone with some professional experience can easily create their own currency. The next thing you need to do is brainwash the ignorant cryptocurrency fanatics on how your coin is game-changing. Then you can do an ICO (first coin flow).

Create your own profits and collect money. It's easy, isn't it? This is not true as it is another $ hitcoin in the crypto industry. Like the stock market, the price of cryptocurrencies and gold is that someone is willing to pay for them. People buy gold because it is a profitable commodity and can be used to prevent global warming. However, Bitcoin has more potential for cheap, fast, secure, and stable stock trading. Tokens like Ethereum (aka Ethereum) can serve different needs, all of which are considered very useful. While Bitcoin is primarily used for payment purposes, Ethereum is designed as an electronic device that allows users to configure and run services on the Ethereum blockchain.As blockchain technology develops and adopts and prices stabilize, we will see Bitcoin become a new repository at lower cost, and new entrants will grow to support this potential.

Crypto Users: Millennials

With the emergence of the new digital age, the demand for cryptocurrency will be driven by thousands of years.Millennials! They now have the largest working population in America, and by 2019 their population will be more than infants.

A 2018 survey of 2,000 people in the UK found that millennials trust tech giants like Amazon and Paypal more than banks. In 2016, Facebook published a free report on the results of its Millennials survey. According to the report, 44% of millennials think banks don't understand them and 92% don't trust financial institutions. A recent independent study by the CREALOGIX Group also shows that:Millennials have moved from traditional financial institutions to cryptocurrencies. Indeed, since the financial crisis of 2008, confidence in banks has consistently declined among the general public, and young people in technology have turned to blockchain and cryptocurrencies as an alternative to traditional banking.

Due to the worldwide interest in Bitcoin, over the years thousands of years have become increasingly popular with Bitcoin along with commodities and gold.

Dealer: Wall Street

Needless to say, Wall Street will play a key role in cryptocurrency applications.However, Wall Street's view on the future of cryptocurrencies is polarized. JP Morgan CEO Jamie Dimon once again criticized bitcoin for the government's inability to control it. Meanwhile, InterContinental Exchange (the parent company of the New York Stock Exchange) announced the launch of Bakkt. Bakkt is a world heritage platform and ecosystem, where investor interest in cryptocurrencies has grown and will play a key role in the expansion of cryptocurrencies on Wall Street. As the United States Securities and Exchange Commission (SEC) classifies bitcoin and cryptocurrencies as commodities, the delayed decision on the Bitcoin ETF strategy is causing ripples in the community and reducing its value. Almost $ 50 billion of that money evaporated from the cryptocurrency market in 7 days.

However, there is no doubt that as interest in blockchain and cryptocurrencies increases, more and more companies will join the ranks of cryptocurrencies, resulting in interest in Bitcoin, Ethereum and Ripple. . The SEC sense of Bitcoin ETFs is all it takes to start a flood on Wall Street.

go forward

The dollar has been a profit for many years. The central banking system is also functioning well and meeting our needs, but it is not perfect. Existing bad money can lead to financial fraud and financial loss. Can blockchain redefine financial processes? Can Bitcoin Trade US Dollars? The answer is no. Indeed, this requires a modification of the existing budget and model of government.However, in situations where the financial system is not functioning properly, cryptocurrencies do very well.

There is still a lot of competition to be done to integrate cryptocurrencies into the current financial system and government regulations.Issues such as the management of capital outflows / inflows and operational traceability should be discussed. Appropriate international laws and regulations must be established to regulate the use of cryptocurrencies.

Another glitch in the crypto industry is the bitcoin whale, a group of 1,600 addresses holding around 5 million bitcoins, or one-third of the market.Bitcoin's concentration means the market is vulnerable to significant price volatility and manipulation, which is another reason trading companies are lagging behind.

Overall, blockchain has set the same standards as gold in terms of transparency, volatility, and privacy, but time will tell how Bitcoin will become the digital gold of millennials.