Recently, the bitcoin market rose after falling, this time will hit a new high? This is a matter of great concern. Bitcoin is a virtual currency whose value depends on the willingness and ability of the person who buys it. However, due to the existence of some technical defects, so in use will inevitably meet a lot of difficulties.
1: The rise of Bitcoin
Bitcoin is a digital currency invented by American cryptographer Timo Taylor in 2009. Bitcoin’s value depends on how well it is created, transmitted and used. Bitcoin can be used for online payments and retail transactions, as well as for investment and other purposes. Bitcoin has been around for more than a decade, but it still faces many risks due to a lack of regulation and privacy protection. The Bitcoin market is clearly on an upward trend, and as more players flock to the space, the price volatility will become more intense. Moreover, since virtual currencies themselves do not generate real purchasing power, investors need to exercise caution to avoid losses.
2. Cause analysis of Bitcoin market volatility
Since 2011, the bitcoin market has entered a period of rapid development. As demand for virtual currencies grows, so does the price of bitcoin. At such a cusp, many investors want to seize the opportunity to make a killing. Yet despite Bitcoin’s rapid price rise, risks remain. Because bitcoin is a form of “digital gold,” the amount is limited and the transaction costs are high, so only a few people can profit from it. What is uni sushi prices. There are also a number of technical factors influencing Bitcoin’s price: one is block size. The minimum unit for each transaction is 510 bytes, while the minimum unit for a bitcoin contract is 1024 bytes. Second, from the network to the Bitcoin exchange needs to go through multiple encrypted tunnels and firewalls, which means the transaction speed is relatively slow; Third, compared with other mainstream trading platforms, Bitcoin has some advantages. For example, Ethereum and Binance do not provide complete payment solutions at present, so it is inconvenient for users to use it.
3: Virtual currency market prospects forecast
With the rise of the virtual currency market, more and more people began to pay attention to and participate in it. But because of its high risk, many investors have difficulty making profits. Still, many investors are willing to put money into buying Bitcoin or other virtual currencies. According to relevant data, the global virtual currency market scale has reached more than one trillion dollars. That figure is expected to grow to about $1 trillion by the end of 2021. In the future, with the continuous strengthening of the supervision of virtual currency transactions, as well as the effective management of the virtual currency trading market by the government, it is believed that the virtual currency market will also usher in a more prosperous scene.
At present, Bitcoin is not a good investment because it is not a stable and reliable asset. If you want to buy Bitcoin as an investment, it is better to choose other safer and more stable ways. But don’t be discouraged, there may be better days ahead for Bitcoin.