Chinese bitcoin short-term demand will not be reduced, prices rose five in support of its causes
In recent days, bitcoin prices to a record high, reaching $1220, 2013 higher than the highest point for $45. But it is how to do it? Contact with bitcoin industry for many years, the market believes that the current uncertain world political environment or bitcoin value-added support, at the same time, a limited number of bitcoin and bitcoin mining are halved, technological advances allow assets of its properties is more prominent.
At present, the bitcoin network weekly trading volume reached US $1 billion 800 million, and no “slow down”. The market believes that the following reasons to support bitcoin rising, and let the future development of investors bitcoin is full of expectation.
Bitcoin agreement in July 2016 was halved
Bitcoin halving production means that the number of new money in the network can be excavated cut in half every 4 years, until the supply peak so far. Bitcoin limited property and rising prices, constantly remind investors to have bitcoin.
Along with the international community to recognize bitcoin wider, bitcoin rising demand, and effectively support the bitcoin market rising.
In the short term bitcoin demand will not be reduced in China
In 2017, the people’s Bank of China a “prudent neutral monetary policy, the reason is that since the success of the Trump campaign after the strong impact of the renminbi dollar, in order to avoid further depreciation of the RMB impact on the domestic economy, the people’s Bank of Chinese decided to adhere to the people’s currency policy” prudent neutral “as one of the goals of the 2017. Affected by the devaluation of the renminbi is expected, the domestic public bitcoin as a way of assets, so the short-term demand in Chinese bitcoin will not be reduced.
At the beginning of 2017, China central bank to avoid domestic assets transferred abroad by bitcoin, while strengthening the supervision of anti money laundering, thus strengthening the supervision of bitcoin trading platform. The move to suppress the bitcoin in domestic circulation. Although the decline in trading volume, but bitcoin market continues to rise, to a certain extent, but also enhance the central bank to strengthen supervision of bitcoin in the country needs emotion.
Bitcoin is regarded as a digital gold, played the role of hedge
In bitcoin short history, a British exit (Brexit) and the Greek debt crisis and other events have contributed to the increase of bitcoin prices and demand. The future of the EU and uncertainty of Trump’s policies are positive factors to promote the prosperity and development of the bitcoin. Investors hope that through to the center of the characteristics of bitcoin, enhance the anti risk ability of assets. Therefore, the uncertain political environment is one of the important factors promoting bitcoin prices rise.
At the same time, there are some serious inflation countries are using bitcoin as a means of exchange. The characteristics of bitcoin will not let it avoid the additional risk of inflation, it is gradually replacing some of the country’s currency function.
Bitcoin technical progress
Have to say, the development speed of bitcoin transactions beyond the imagination of people. Today have bitcoin network congestion, the reason is also need to deal with bitcoin transactions too much. In order to solve this problem, the researchers proposed solutions to bitcoin expansion. The researchers believe that the expansion will bitcoin extend to a larger range, let more people enjoy the convenience of bitcoin.