Behind the existence of any currency, there will be strong support, such as national credit or precious metals.
Now threatening to invest in Bitcoin is anti-inflationary because of the openness of decentralization? Bitcoin, like gold, does not generate cash flow and has no equivalent conversion. How to measure its true value?
Every country is developing its own encrypted digital currency
I really don’t understand why big investment institutions invest in such assets?
Ask God to explain the future development and application scenarios of Bitcoin
To be honest, the US stock market’s four-fuse-breaking + operation of printing money to rescue the market and breaking new highs for 34 times has made me full of awe of all financial trends. Regarding Bitcoin, I really dare not say how it will end in the future, but one thing is certain. An irreplaceable role of Bitcoin is to evade government supervision. Tulips do not have this function! Therefore, I can only boldly make a hypothesis based on my current insights, which is merely an hypothesis based on the current situation. The more chaotic the world, the more popular Bitcoin is. The more international conflicts, the higher the barriers, the fewer dialogues, and the more prejudices, the more valuable Bitcoin is. The big changes unseen in a century are precisely a period of violent turbulence, so there is a high probability that Bitcoin will follow this trend and become more and more valuable during the turbulence. Because those unseen trading needs will increase in the international turmoil. Various currencies are fighting each other, and the result of countries vying to print money may just make Bitcoin, a currency that can maintain its value, become stronger and stronger. Conversely, if the international situation becomes more stable. Everyone trades under the dominance of a certain country. Then there is a high probability that Bitcoin will remain at a low value forever. Some people say that Bitcoin has no physical counterpart. Correct! In other words, if a large-scale war really breaks out in the world, it will be worthless. Because the outbreak of war will lead to a shortage of supplies. And the lack of materials will clear the value of everything that has no connection with actual materials. In ancient China, it was said that gold in troubled times is jade in prosperous times. In troubled times, the priceless jade is not always better than gold, or even worse than a bag of rice. Bitcoin corresponds to the “jade” in this old saying. And in troubled times, I’m afraid it’s worthless. But the real state of the current world is overproduction. There is overproduction all over the world! American agricultural products can feed the entire world and are cheaper than any country’s own production. China’s infrastructure capacity can renovate all roads in the world and is cheaper than any country’s own infrastructure, similar in all walks of life. Therefore, physical correspondence is not so important. At the same time, all countries are increasing the money supply, the essential reason is also “overproduction.” Therefore, the value of Bitcoin is precisely a manifestation of the unhealthy structure of the entire international economy. In other words, if countries have a healthy economy, stable currencies, and matching production with demand, then Bitcoin will not have much room for appreciation. In other words, there is no room for Bitcoin to appreciate in war and unification. Without “fighting without breaking”, “overproduction”, “increasing uncertainty”, and “radical monetary policy”, there is room for Bitcoin to appreciate. And this may be a new normal in the coming decades between China and the United States. I am afraid that many demon things will happen in the future. Bitcoin is one of them. The so-called country will die, there must be evildoers. Bitcoin is a demon coin, and it cannot be judged by common sense. It is nothing more than a projection of the chaos of the world. Someone made a suggestion ten years ago to buy a few bitcoins and put them there when it doesn’t exist. A person with the same ability as I think is still to get a wallet and spend a small amount of money to buy 0.0001, and leave it there without touching it, just as if it doesn’t exist. Maybe for decades, maybe your most valuable legacy is these bitcoins. We can’t afford to invest tens of thousands of dollars. It is not difficult to make a few hundred dollars. Otherwise, in ten years, will we feel that we don’t spend a few hundred dollars to get a little bit of it?