Other digital currency bitcoin and the future?

Source: Securities Times

At present, digital currency under this kind of system may to the end of the basic, does not mean it has no certain existence value.

Dong Hai Chen

What is the biggest bubble in human history? Is the latest by the “eat melon” crowd at the circle, Starving people fill the land. encrypted digital currency field. Digital encryption currency bitcoin leader at the end of 2017, there have been individual exchange instantaneous reached about $21000, at that time most of the exchange price of more than $19000. Recently, bitcoin just 11 days fell more than 40%, the price fell below $3500, more than the highest point fell more than 80%. And digital currency bitcoin fell still in the middle of the road, history or law that there have been a few times.

Why is that bitcoin digital encryption currency is the largest in the history of the bubble? Because of a few initial bitcoin transactions, the price is about 0.5 cents or so, then when the highest price, rose about tens of millions of times, which was completed in only 9 years. Even the history of tulips, Clivia speculation events, the degree of madness is not with other digital currency bitcoin crazy compared.

Digital currency of this horrible or there is a certain reason, can be said to factors in opportune support. After the 2008 global financial crisis, global central banks to release the amount of money into social property, and greatly expanding the gap between rich and poor, the state and government to ensure stable currency credit almost bankrupt, while the total bitcoin is limited, every year the new excavation currency gradually reduced, naturally against the bankruptcy credit function of legal tender. But bitcoin claims to the center of the world, and the anonymous transaction, transaction records can never be tampered with, is not monitored by any organization and personnel, this function has great appeal for special personnel. And the global online transactions, people can participate in, break through the restriction of borders and currency.

However, bitcoin digital currency plummeted because many opportune factors toward the opposite reason. Day, A new force suddenly rises. bitcoin, finally attracted the attention and monitoring of various regulatory authorities, digital currency can be invisible, but can not contact the participants. The wealth of cash would eventually return to reality, to be achieved through the legal tender, and also can not contact. Digital currency is known as currency, in order to deal with, but the reality is that the initial design of the supply of bitcoin is very limited, but has never let it stir, may become an important currency in reality, its main function or by some money laundering and the transfer of wealth by many regulatory authorities for embezzlement money, money, blood money using bitcoin channels were washed and transferred to the operation will be highly monitored.

The negative factors are also fatal to use digital currency. The first is the credit is not definitely credible, the branching eldest brother bitcoin, leads to the so-called advantage can not be changed no longer exist. But the digital currency is actually a kind of software system, can cost no threshold to copy, not with scarcity. Furthermore, bitcoin claims to the center, but the reality is a digital currency can be controlled by controlling the stress forces, toward the center or have the potential risk of being Super Center control. Many copycat digital money later, can be released through the issuance, also happens to be the center of the show. Because the digital currency is the software system, the inevitable risk lurking hacking damage. Also, digital currency is maintained, especially a force expansion, requires a lot of power support, the cost has risen exponentially, eventually people may not be able to afford to support digital currency. Finally, the number of above mentioned bitcoin natural design is extremely limited, in addition to being stir fried, has not let it become a trading currency widely used, “money” two words from bitcoin and other digital currency.

In history, many bitcoin plummeted, the decline more than the current wave, but bitcoin currency later repeatedly soared, including this rose to about $20 thousand. Then, the bitcoin slump will be a stirring among the dry bones? The answer is almost negative. Because of the factors mentioned above are bitcoin digital currency at the right time, can not change the opposite, and it cannot overcome. The past and other digital currency bitcoin crash can be complex, the reason is that the negative factors for the digital currency was not strong enough to threaten the survival of the point of digital currency. Han Xincheng Xiao He, also Xiao He, Xiao He was finally killed, digital currency opportune factors or repeat this story.

Of course, the current digital currency under this kind of system may to the end of the basic, does not mean it has no certain existence value, does not mean to deny the blockchain some technical characteristics will have a certain application in the future.

(Department of Finance commentator)

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