Xu Jin: Why did Bitcoin plummeted, Bitcoin was over, what inspiration of the real world?The dispute in the Bitcoin circle also makes people think about the underlying logic of currency and monetary policy.
Seeing that he got up the tall building, and seeing his building collapsed.
Almost in the year, Bitcoin has experienced the success and failure of the rise and fall. From December 2017, it was close to 20,000 US dollars. By the end of November 2018, it fell below $ 3,500, and the price shrunk by about 80 %.In addition to Bitcoin, the situation of other virtual currencies is not good. The media reports that the entire digital market has shrunk by 85%.
In history, Bitcoin has experienced this decline twice, but this decline is still different this time.Bitcoin was absolutely not high before Bitcoin, and people who played were very niche. Even if they fell 70 %, they did not have much impact at that time outside the circle.This time, it is a lot of attention. The currency circle has changed from the heat to the street mouse, and the people in the mixed chain circle have become embarrassing.
Why does Bitcoin plunge
Is Bitcoin finished, what inspiration is this in the real world?
In addition to the supervision of cryptocurrencies, this round of Bitcoin falls, from the technical level, it is related to the splitting of the Bitcoin circle by itself, the so -called hard fork (hard fork).In the talk of cryptocurrency, the so -called hard fork is when the transaction method of the Bitcoin block changes, if the industry has a consensus, then the hard fork will appear mdash; mdash;The birth of the chain from two different directions, which means that there will be a self -split self -cloning.
Two camps of Bitcoin Cash (BCH), which are closely related to Bitcoin, fall into the computing power competition caused by a hard fork. The computing power assigned to Bitcoin accordingly, the price of Bitcoin has declined, which leads to the exit of some mining machines withdrawingThe vicious circle of price decline and computing power attenuation eventually caused market confidence to collapse, and Bitcoin price avalanche.
Not so appropriately, the parallel universe that cannot be existed in the real world can exist at the same time in the world of Bitcoin; except for Bitcoin, different alternatives can emerge without limit.
Fight for desire and faith
From the historical perspective, 2018 is just ten years after Bitcoin was born.In the past ten years, Bitcoin has changed from the Internet to the mainstream topic, and has become an investment air in recent years.The paper drunk gold fans in the currency circle have made the traditional securities industry that originally belonged to the virtual economy also seem to be much more regulated.
The success of the virtual currency, the kernel is largely driven by technological innovation and the concept of freedom. It is a modern replica MDASH; mdash; do not misunderstand the predecessor of any technology, often requires bubbles or in the predecessor of any technology.It is time to talk about using money to be smashed out of your own way. In the end, it takes time to test.Of course, blockchain technology has the future, but what role this technology is suitable and how to play is still being explored.Before the exploration is completed, any slogan that claims to be successful or inevitable is just a slogan.
If you don't look at the temporary twists and turns, how can we guess the future of Bitcoin or virtual currency?
Bitcoin is the earliest and most successful virtual currency. The starting point lies in decentralization and is guaranteed based on the limitedness of the algorithm guarantee. However, now, this reliability is greatly reduced.The hard fork caused by technical differences or disputes of interests undoubtedly reduced the credit of virtual currency and harmed its long -term value.In fact, it is the emergence of various digital currencies that people in the circle have gradually realized that Bitcoin does not have real scarcity, which can be compared with the scarcity of shoulders and gold in the physical world.Real nightmare of currency.
The plunge this time has made Bitcoin strive to become digital gold.Once, many people hope that Bitcoin will resolve the disadvantages of mainstream currencies. Now it seems that Bitter is not only unable to replace traditional currencies, but it has also become a new problem.
Any currency is based on the existence of credit. The success of Bitcoin in the past is based on a premise, that is, the algorithm guarantees its limitedness. Second, it is decentralization and anonymity.In fact, thinking back to the history of finance, these factors have played a decisive role on gold on the road of world currency.At the beginning of the birth, the belief of the people in the currency circle of Bitcoin was consistent with the degree of fans of the golden fanaticism that year, so that the economist Paul Bull; Crugman was called a cocoon wrapped in liberal ideology cocoons.Science and technology mysterious bubble.
The road of Bitcoin and gold has a similar starting point, but the path is quickly split.The main point is that it is the collective consciousness of all human beings that maintain the belief of gold currency, and those who maintain Bitcoin are small groups in the currency circle.Although this group is enthusiastic, it is too niche and closed. It is roughly male -dominated and relative edge groups. More importantly, this group's enthusiasm for inventing more types of virtual currencies is no less enthusiastic than their enthusiasm for Bitcoin.It can be said that it is the inherent value of this enthusiasm that damage Bitcoin.The truth is that, unlike the huge reality of gold in the real world, most people in the real world and most of the transactions are free from the currency circle.
It is too early to assert that Bitcoin rests vegetables, but now is it the time to grab chips, and no one dares to say that who can say that after falling into the market, it is impossible to continue to fall by 90 %.possible?
Dictatorship's central bank vs split currency circle
In any case, Bitcoin represents the forefront of digital currency.The plunge of Bitcoin this time will also enter the history of currency in addition to entering the history of financial speculation.At a broader level, the disputes in the Bitcoin circle also make people think about the underlying logic of currency and monetary policy.
I published a monograph on the history of currency history the year before, which talked about silver, especially describing the story of several dynasties in China before silver currencyization, which caused the dynasty to iterate.Behind Bitcoin's seemingly sci -fi appearance, when we talk about its possibility as a currency, it cannot actually get rid of the logical logic of currency mdash; mdash; when Bitcoin is the most enthusiastic, many people suggest that I write a copyThe Bitcoin Empire, the words did not fall, Bitcoin fell first.In the Silver Empire, I concluded that no matter how powerful and brilliant the empire was, it was difficult to avoid the fate of dying from a height.Gold de -monetization has traveled for decades, and the golden fanatic person has insisted on holding, but to this day, gold has become increasingly becoming ordinary products.Bitcoin's currency journey is similar.Before this round of Bitcoin rising, I asserted that the dispute over Bitcoin would be the battle for faith. In the future, the faithful faith will be the process of the suspicion.Essence
At the same time, one of the original intentions of Bitcoin is to resist the central bank's seemingly uncontrollable currency issuance, but now it seems that there is no consensus circle more suspicious. The division of consensus will not only bring new currencies, but also cause triggeringFor the new outbound, why does the virtual currency laugh at the central bank that laughed at all countries to gradually obtain independence?
Compared to Bitcoin's own rise and fall, Bitcoin represented by Bitcoin, and the unbelievable dark current of the mainstream central bank is actually worth thinking about.This anti -construction trend is also a vague link with Trump.Before the plunge of Bitcoin, the mainstream institutions seem to be temporarily maintained. The rise of the blockchain behind Bitcoin is already a force that cannot be ignored. Traditional power and the wrestling of this emerging force will continue.
BitcoinThere is no final chapter.
