taolei jewelry wholesale Why is the price of Bitcoin at a historical high? How is its value determined?

wholesale jewelry united states Bitcoin transactions continue to approach the highest level of history this month. Now its price is around $ 34,000, an increase of 77%over the previous month, and an increase of 305%over last year.
Bitcoin was launched as a digital currency in 2009, and it was used for digital currencies for a period of time. This has become the mainstream. Today, it is almost only used as a "digital gold". In other words, a scarce digital asset.
In order to cope with the risk of economic collapse caused by new crown pneumonia, governments in various countries have injected the currency created by the central bank into the global market to stimulate consumption and help save the economy.
The increase in currency supply will erode the value of the currency and cause people to find anti -inflation assets to hold. In this environment, Bitcoin has become a tool for hedging that is imminent inflation and other types of assets.
What is Bitcoin? Bitcoin is the largest cryptocurrency in the world. The current circulation supply is 18.5903 million Bitcoin, with a maximum supply of 21 million.
This restrictions cannot be changed into the Bitcoin protocol and cannot be changed. It causes artificial scarcity, which ensures that the value of digital currency will increase over time.
Although the currency issued by the government such as the Australian dollar can increase the supply through the central bank at will, the supply of Bitcoin is fixed and will not expand due to political decision -making.
Bitcoin is mainly traded on online cryptocurrency exchanges, but it can also be sent, received and stored in "digital wallets" on specific hardware or smartphone applications.
But perhaps the most pioneering aspect of the Bitcoin network is that it uses the work of cryptologists and computer scientists as a blockchain -based digital currency.
A open blockchain is a "inseparable" database, which means that the historical record of transaction cannot be changed. A functional and decentralized digital currency
Bitcoin is "decentralized". In other words, it plays a role through a scattered point -to -point network, instead of through central authoritative institutions such as central banks.
This is achieved through the participation of Bitcoin "miners". This is anyone who chooses to run software on the blockchain to verify Bitcoin transactions. Usually, these people are actively participating in cryptocurrencies.
Irladies they are rewarded Bitcoin, and more Bitcoin will be generated every ten minutes. But the remuneration paid to the miners is halved every four years.
This process that is gradually reduced by the inventor Satoshi Nakamoto is encoded into the network. He designed this method to simulate the process of extracting the real gold -it is easier at first, but over time, as time is time Pushing will become more and more difficult.
Although several people claimed that they were Bitcoin creators, Nakamoto (pseudonym), his true identity had never been confirmed. His last article on the forum was on December 12, 2010. At the above
Bitcoin miners can earn 6.25 Bitcoin every one block, which is lower than the early 50 Bitcoin. This has generated the motivation to participate as early as possible because scarcity will increase over time.
Because of this, it is expected that oil prices will rise to meet demand. However, because the scarcity of future is known in advance (prediction can be predicted once every four years), the reduction of the half -half incident is often reflected in the price.
therefore, the sharp rise in prices and declines usually reflect the changes in demand status, such as the increase in the number of new institutional investors. More and more listed companies are investing in Bitcoin.
, what functions do Bitcoin provide such a society for people? Why is Bitcoin important? Why do so many people think that Bitcoin is important and there are several possible explanations.
This is a "security" asset facing global uncertainty. Buying Bitcoin is a way for people to decentralized assets. Its market value can be compared with another asset -gold -gold -gold -gold -gold.
In the global popular turbulence, unconventional U.S. presidential transfer and geopolitical power are transferred around the world. More people may think that gold and Bitcoin are better substitutes for dollars.
This is not neutral in politics and ideology related to the privacy -oriented ideology. It was born in the Internet era, a era that is deeply plagued by privacy issues.
The origin of Bitcoin's thoughts and ideology was the "password punk" campaign of the 1990s and the beginning of this century. Records of the online forum show that Bitcoin is advocated for an anonymous digital currency, allowing people to interact online without being tracked by the government or company, providing another choice for anyone who does not trust the federal central bank system.

trendy boutique jewelry wholesale In the final analysis, the real value of Bitcoin lies in it is a "historical logo". If you let people write the history of human currency two hundred years later, the entire currency history (the evolution of the shape of the currency) can be divided into three stages, which is the physical currency stage that starts with shell feathers and gold and silver. The digital currency stage is represented by bank bookkeeping and electronic currency, and the mathematical currency stage that is still in the future.

custom acrylic jewelry wholesale Because it is limited and scarce. The price is determined by the market transaction, and the scarcity increases the price.