From the Ming Dynasty Da treasure devaluation, see the value essence of roller coaster bitcoin

About bitcoin (BitCoin) others have said a lot, but also some people on this to make money, to the center of the core idea, and is a super safe, according to the idea of bitcoin Nakamoto total quantity in 21 million. When the highest value of a bitcoin $21 thousand, when compared to 2009 bitcoin emerging price $1 can buy 1300 bitcoins, jumped about 2 million times. In September 6, 2018, bitcoin fell below $7000, November 21st fell below $4100. Why bitcoin has been like a roller coaster ride, fluctuated, while a cloud bottom, some people lose more than hundreds of thousands or millions of. Why bitcoin is not like the dollar, RMB and pound as strong, even if the volatility and bitcoin fluctuations is very little and can be ignored, bitcoin is not known as the most safe “money”?

In fact, the development of bitcoin since no country admits he is money, especially in recent years, many countries in the world have issued a national bank bitcoin management specification or notice, express risk bitcoin. Compared to the legal currency of various countries, bitcoin has inborn deficiency. Now all countries are using money, money itself is of no value, is some brightly coloured, relatively nice paper, some even is not good. So why do people believe that the value of the paper? Because there is a national credit guarantee is in his national credit, accepted the paper, because I believe, these papers can exchange the goods or services they need. To ensure that these countries through what issue paper value? Is the national strength, or tax, because these countries the paper send out, he will back, the paper could circulate. The worst, these papers can’t buy anything, at least can also be used to pay taxes. This is from the basis to ensure the value of paper money.

But bitcoin is not the guarantee, bitcoin is not attached to the entity, so his credit guarantee is hard to find. Although bitcoin defines the final 2100 million pieces, no spamming phenomenon, but no credit carriers, it is difficult to find his real value. But because of the huge volatility of bitcoin, but also will not be accepted as the currency of that country. It will be a direct result of national currency collapse. As the Ming Dynasty notes, Da treasure, not only because of the state, directly lead to a huge devaluation of the country because the Da treasure, credit, and not as Da treasure credit is equal to the money no credit basis. Not to mention bitcoin even no country is issued.

So now, investors, especially China investment, when bitcoin investment in the choice, but to keep their eyes open, do not impulse into bitcoin investment market. Any investment, the actual value is often the basis of profit.

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