Why Bitcoin Loses Money (Why Bitcoin Bankrupts)

08/05/2023 04:42 • Blockchain Buzz • 66 views

Why Bitcoin Loses Money Bitcoin is one of the most successful Cryptocurrency in blockchain technology, and it is widely used worldwide. However, there are some problems and risks in the current digital asset market: due to lack of regulation, opaque transactions, and excessive reliance on third parties to monitor investment behavior by investors, their prices fluctuate significantly; Moreover, most exchanges are centralized platforms, making it impossible to conduct real trading activities, which means that in the event of hacker attacks or price manipulation, it is possible to occur Why is Bitcoin losing money? It’s because many people are using a term to describe the price decline of Bitcoin, but that’s not the case. Because people are not unfamiliar with this term, we often hear the saying: “If you buy and hold any currency for more than 5 years, your total income will decrease.” When you purchase a specific token, you will find that you have 100% ownership of the project, but without these funds to support it, it is a deficit, which is normal. For ordinary people, this situation may be difficult to understand, especially for those with huge losses like now, who may be affected by losses. Although some people’s stocks can be settled in cash, there are also some who gamble in the stock market and often do not have access to their own equity, which is the so-called ‘billionaire myth’. Why is BTC worse than other Cryptocurrency? Bitcoin has fallen below $20000… why do I believe Bitcoin will continue? “As time goes by, Bitcoin is getting closer to its historical peak and its value is constantly increasing, climbing from around $1000 initially to over $4000 today. In fact, Bitcoin has also been steadily rising in the past few years and has achieved stable growth in recent months. Since 2013, “Bitcoin” has dominated the market trend, and now it has become the world’s largest Cryptocurrency – Bitcoin (BCH). The main reasons why Bitcoin can maintain high operation are as follows:

1. The Bitcoin network can only process 10 transactions per second, and its network latency allows it to achieve extremely high costs and inefficient transaction rates (such as 30 minutes), even taking several days to achieve this goal Although Bitcoin has high scalability and performance advantages, it still has a lot of room for development, so it still faces serious legal and operational challenges. For example, after the U.S. Securities and Exchange Commission (SEC) issued a new enforcement decision in the fourth quarter of 2020, Bitcoin has been in a bear market for three consecutive months, which makes it a serious threat to the U.S. financial industry

3. Because of its decentralized characteristics, Bitcoin, as a new means of payment, is almost the same as other Fiat money. On the contrary, Bitcoin uses separate management of private and public keys For example, if Bitcoin wants to gain more control, why does Bitcoin go bankrupt The value of Bitcoin is considered to be linked to fiat currency, therefore it does not have monetary attributes. So when asset prices rise to a certain extent, people will have a demand for gold. In the traditional world, there is a saying that is “digital gold”, which is also applicable to the Cryptocurrency industry, because they are Scarcity, irreplaceable and divisible, which can make them the foundation of the financial system and economic system in the future. However, in the world of Bitcoin, due to its limited quantity and no fixed timestamp limit, these can lead to asset collapse and trigger liquidation risks. If events that occurred earlier in the past year (such as May 1, 2015), then all of this means that Bitcoin’s losses will be greater; Secondly, the price of Bitcoin will continue to increase over time, making it increasingly difficult to determine or losing market confidence.

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Why Bitcoin Loses Money (Why Bitcoin Bankrupts)

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