Bitcoin exceeded $52,000 because people have invested heavily recently. Currency is a very serious matter, and the central bank must not cover everything with one hand. This idea is at the root of the emergence of Bitcoin. The biggest difference between Bitcoin in 2009 and traditional currencies is that its operating mechanism does not rely on credit support or guarantees from any government, organization or individual.
The problem with Bitcoin is essentially a network protocol reached by peer-to-peer torrent files. This design ensures that no one can manipulate the issuance of Bitcoin to avoid artificial inflation. At the same time, at the beginning of its design, Bitcoin also set a supply limit. When the total number of Bitcoins issued reaches 21 million, Bitcoin will shut down the issuance system to control inflation risks.
When Bitcoin was born, it was just a game for some computer enthusiasts and a shelter for illegal transactions. Today, Bitcoin has been integrated into the real economy, and the production and circulation of Bitcoin have attracted more and more attention from ordinary people. Today, a complete industrial chain has been formed around the production, storage and payment of Bitcoin, including mining machinery manufacturers, virtual commodity providers, physical commodity providers and Bitcoin financial service providers.
The popular concept of Bitcoin has given rise to many financial derivatives that rely on Bitcoin. The high volatility of Bitcoin prices also attracts many investors to this market. Currently, Bitcoin financial products traded on the world's major Bitcoin exchanges mainly include Bitcoin futures, Bitcoin options and Bitcoin speculative funds, etc. Most of them are the exchange rate of Bitcoin against the US dollar or RMB.
Anonymity is an inherent limitation of Bitcoin’s payment and circulation, while government tax restrictions are external limitations caused by Bitcoin’s payment and circulation. If Bitcoin becomes a country’s unified currency, governments will lose tax and monetary policy discretion. First, for a country like China that issues currency by exchanging debt for assets, the legalization of Bitcoin will cause the government to lose seigniorage revenue; second, the anonymity of Bitcoin determines that if Bitcoin becomes a medium of exchange , the government will lack the corresponding basis for taxation, and transaction entities can evade the tax burden; thirdly, when Bitcoin becomes a unified product in some countries, as a result, as long as the government is the organizer of the social economy, Bitcoin will not become mainstream currency. Of course, governments' willingness to block Bitcoin and their ability to block it determines Bitcoin's future. Unfortunately, governments have both the will and the ability to stop Bitcoin. Therefore, there should not be a lot of speculation in Bitcoin, at least in our country the prospects are not very bright.