Since new year's day, the price of bitcoin has reached a high of US $34000 and US $40000, pushing the total market value of cryptocurrency market to exceed US $1 trillion. Bitcoin, which is in the limelight, rose strongly against the trend at the moment of the resurgence of the epidemic and the increasing downward pressure on the economy
What are the factors that stimulate the strong rise of bitcoin? Is bitcoin, with an increase of $10000 in three days, worth the risk of investment
ใใ Bitcoin rising against the market last year
Affected by the epidemic, the measures taken by various countries in the first and second quarters of 2020 once brought the economy to a halt in a large area, the unemployment rate soared, and the decline of GDP in the second quarter generally hit an all-time extreme. Although the global economy generally experienced a rebound in the third quarter of 2020, with the recurrence of the epidemic, some countries were forced to & ldquo; Foot ban & rdquo;, Economic activity contracted again in the fourth quarter
In March, the epidemic directly led to the unprecedented fusing of the US stock market four times in ten days. In order to save the market, the Federal Reserve has introduced extremely radical monetary policy and fiscal rescue measures. At the end of March, although the U.S. economy was still falling on a cliff, the U.S. stock market began to rebound. Stimulated by large-scale rescue funds and relevant policies, US stocks rose continuously. However, the sudden rise of bitcoin in 2020 completely overshadowed the traditional financial market
In addition to the precipice crash in late February 2020, bitcoin has experienced five rounds of rapid rise, especially since it bottomed out at the low of $3850 on March 12 last year. In the early morning of January 8, 2021, bitcoin hit the price barrier of $40000, an increase of more than 9 times compared with the low of $3850 last year
Blockchain & ldquo; By products & rdquo; But it has become the favorite of speculators
Since the birth of the concept of bitcoin in 2008, it has only been more than ten years, but its price has soared at an unprecedented speed. The breakthrough of $40000 this time only seems to continue the tool mission that has been destined to be manipulated by speculators since its birth, but the underlying principle on which bitcoin relies & mdash& mdash; Blockchain Technology & mdash& mdash; But it is rarely concerned by these speculators
According to the existing data and the general understanding of the industry, bitcoin and blockchain were first established in 2008 by a self proclaimed & ldquo; Nakamoto Cong & rdquo; In their published article bitcoin: a peer-to-peer electro NIC cash system. This paper mainly explains two aspects of bitcoin, one is the transaction mechanism, and the other is how bitcoin itself is produced
According to the theory, the data blocks generated by cryptography are connected to each other to form a blockchain, so as to disperse the information originally needed to be concentrated in a central database to all users, so as to realize decentralization. Under this system, each user has some data, but it needs to verify the correct information provided by the user to obtain this part of data, and this part of data needs to be cross checked with the data of other users, so as to realize the function of preventing tampering. Theoretically, there is no central node similar to the traditional bookkeeping transaction (such as banks and lending institutions). Only users can know their own relevant bookkeeping information, so as to realize users' personal information protection and hidden transaction
Relying on blockchain technology, bitcoin can be traded. As for bitcoin itself, it is the product of data computing and network structure. In essence, bitcoin is encrypted data generated by a large number of calculations based on specific algorithms. Due to the limitations of the current network structure and encryption technology, bitcoin has two characteristics: one is scarcity, and the other is difficult to fake. These two together lead to the inherent & ldquo; General equivalents & rdquo; Functions of & mdash& mdash; Measuring the value of goods & mdash& mdash; Even if there is no corresponding real value
Therefore, the virtual currency led by bitcoin has become the favorite of many speculators
Capital trading behind the surge in bitcoin
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