Btc price prediction 2020, will cryptocurrency wallet double your income

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From the simplest logic, the total number of Bitcoins is only 21 million, which is guaranteed by the non-tamper able system. Things are precious, and they have the foundation to become a scarce asset, like a diamond, like an antique. This is the value evaluation standard that human society has evolved over the past thousands of years. I believe that it will not change in the foreseeable future, that is, things are precious.

Except for its imaginary side, does Bitcoin have any other value? The answer is yes, it is far more than a scarce collectible. This is about the historical formation laws of currency.

In the early days of human society, transactions between people were bartering, and this method of course was very inefficient. With more and more transactions, everyone found that things like shells are scarce and easy to keep, so they use them as the medium of transactions. This is the most primitive currency. Each different group will slowly find the currency recognized by each in a large number of economic activities. Some continue to flourish, and some are slowly eliminated.

As the scope of people’s activities and exchanges continues to expand, there will also be the problem that multiple currencies cannot be unified. You use shells on your side and feathers on our side. This will return to the embarrassment of bartering goods, so we have to go one step further to find a currency medium that is more versatile and representative than shells and feathers.

It is in the process of such a competitive evolution. After hundreds of thousands of years of evolution, gold has become the winner. Gold is the longest lasting and most widely accepted monetary medium in human history. Including we know that the Bretton Woods system in 1944 was built on the basis of the gold standard. Even if the system collapsed later, gold has always been the most important safe-haven asset, whenever there is a war, an economic and financial crisis or a turbulent situation. , The price of gold will rise, including the Fed’s interest rate hike and interest rate cuts will also cause fluctuations in gold prices.

What are the good qualities of gold, and compare it with Bitcoin

First of all, it is scarcity as a currency, it cannot be obtained casually. At least so far, it is recognized that the gold reserves that can be dug in the earth’s crust are only 200,000 tons. It took more than 7,000 years to dig out 200,000 of them. Less than tons. However, this scarcity is not stable. For example, every volcanic eruption will bring out some of the gold in the center of the earth. You must know that there are 4.8 billion tons of gold in the center of the earth. When the earth is formed, it sinks because of its high density. Go inside. If there are better ways of mining, or gold mining on other planets in the future, scarcity will be further penetrated.

Bitcoin has an advantage over gold in this respect. There are only 21 million Bitcoins designed in advance through mathematical algorithms and cannot be tampered with. Don’t worry about adding more.

The second is portability as a currency, it must be easy to carry so that it can be easily transported and stored. Compared to shells, feathers, copper and iron. Gold is easier to carry around, and its uniform texture is not easy to wear. But since gold still exists in physical form after all, long-distance transshipment is still very expensive, and there are also great risks. Therefore, most of the gold bars have never been transferred. When the gold bars are transferred between the buyer and the seller, the transfer is only the gold ownership, not the physical gold bars.

Bitcoin also has great advantages in this respect. You only need to put your Bitcoin account password, which is the private key, in a USB flash drive or write it on paper. It can be memorized, as long as there is an internet connection. Can be used.

The third is divisibility currency should be easy to divide, just like 100 can be exchanged for 100 pieces of 1 usd. In early society, transactions were not frequent. This attribute is not so important, but as the transaction volume increases, The trading units are getting smaller and more precise, which becomes very important. Diamonds have not become currency, which is directly related to this characteristic.

Many people think that they can only be sold individually. In fact, Bitcoin can be divided to 8 decimal places, which is 1 satoshi. Satoshi Nakamoto, the smallest can be bought by Satoshi. So Bitcoin can also be used for transactions in relatively small amounts. Although gold can be divided, it is still more troublesome than Bitcoin.

Verification as a currency, it is convenient for people to verify the authenticity. The so-called real gold is not afraid of fire. Compared with other metals, gold will not oxidize even if it melts, which is far better than other copper and iron. But gold may still be forged. For example, if gold is plated on tungsten metal with the same high density, it can be fake.

The authenticity of Bitcoin is verified by a cryptographic algorithm mechanism and cannot be forged. Even if there is a possibility of 51% computing power attack, due to the ingenious mechanism design, things actually do not happen.

In general, in terms of scarcity, portability, divisibility and verification process, Bitcoin is very much in line with the requirements of currency, and it is obviously more suitable for currency than gold. Moreover, the Bitcoin system has been running without problems for nearly 10 years, has never had any downtime, and has not missed any accounts. At present, the computer computing power corresponding to nearly 1% of the electricity in the world is maintaining this set of ledger systems. There is no central management agency, and it is completely self-organized and self-issued.

Therefore, it can be concluded that Bitcoin is digital gold, and it already possesses better monetary attributes than gold.

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Digital Nomad

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