Stable currency replaces bitcoin payment
Payment function is the core function of Bitcoin, especially cross-border payment, which not only greatly reduces the payment cost, but also saves remittance time. However, the function of stabilizing currency is more powerful than bitcoin payment. Due to the unstable currency value of bitcoin, users have to bear the cost of falling and rising currency value when paying with bitcoin. The main feature of a stable currency is its stable value, which can play a good role as a trading medium and reduce transaction costs. Now the stable currency is in the blowout period, and there are hundreds of stable currencies. With the gradual popularization of stable currency, it will gradually occupy the blockchain payment market.
The difference between bitcoin and gold
The deflationary nature of bitcoin determines that it is more suitable for value storage, so it is also called digital gold, but bitcoin is different from gold. After excavation, gold can be stored as value without special maintenance. Bitcoin needs the continuous maintenance of the computing power of mining machines. If the computing power is reduced, there is a risk of 5 1% attack, and the value of Bitcoin will be threatened. Therefore, using bitcoin as value storage is also very risky.
The risk of shorting bitcoin
With the development of bitcoin, more and more exchanges have opened the function of bitcoin futures trading, and the number of users participating in bitcoin futures trading has gradually increased. According to incomplete statistics, the daily trading volume of bitcoin futures contracts has reached billions or even billions of yuan, and it is still growing.
As mentioned earlier, Bitcoin needs computing power to preserve its value, and there is an attack risk of 5 1%. With the development of bitcoin futures contracts to tens of billions of dollars or more, shorting bitcoin will bring huge benefits, and the motivation for shorting will become stronger and stronger. We can't assume that human beings are kind, assuming that people don't short bitcoin. As long as the short profit meets the expected value, it will definitely happen. Some time ago, the hard bifurcation of BCH was an example in front of us. After the hard fork, the price of BCH once fell as high as 70%, resulting in the evaporation of hundreds of billions of dollars from the market value of cryptocurrency.
Why bitcoin has weathered the crisis many times.
Bitcoin was killed 278 times in ten years, and finally turned the corner, and the price hit record highs. Therefore, many people believe that Bitcoin will not die, and history is the best proof. But history does not always repeat itself. We should explore the essence and analyze the real reason why Bitcoin can survive. Almost all previous bitcoin crises were caused by hacker attacks and government regulatory measures, such as the Mentougou incident on 20 14 and the strict regulatory system issued by the China government in September 2065 438+04. None of these events has shaken the foundation of Bitcoin, so after a period of time, the market has digested the unfavorable factors and Bitcoin will rise again.
However, if miners do evil, create 5 1% attacks and touch the basic trust mechanism of Bitcoin, the result will be very serious. Due to the irrationality of the market, the occurrence of the two situations may not necessarily lead to the demise of Bitcoin, but it will seriously restrict the development of Bitcoin.
When Satoshi Nakamoto created Bitcoin, he probably didn't expect it to develop to such a large scale today. He only solved the problem of double payment on the basis of previous electronic money through workload proof, but it brought a huge social experiment. Bitcoin may not continue to succeed in the future, but it has brought blockchain technology. Blockchain may not be the best solution, but it can be used as a solution to many social problems at present, which is worth exploring and developing.