Bitcoin is about to break new highs, what is the magic of it? Why is it worth more than 50,000 US dollars (about more than 400,000 yuan) each?
There is such an answer circulating on the Internet, and the questioner asks**Is it a**?
One of the most praised answers is as follows:
If you want 10 million tons of carat diamonds, as long as you have enough money and can make them for you, you just need to go to Henan to pull them.
You want 10 million tons**, as long as you have enough money.
The first way is to dive below the magma layer and mine deeper underground, which is extremely difficult to mine;
The second method is to go to space to capture meteorites containing **, but it is very rare;
After understanding this concept, let's move on to Bitcoin.
Why is Bitcoin so valuable?
Bitcoin has three characteristics that determine that it is as valuable as **.
First, decentralization
Bitcoin's decentralization refers to the blockchain technology (i.e., distributed ledger) to which it is applied.
Blockchain technology can decentralize functions such as data storage, network management, and decision-making from a single central server or entity to multiple nodes or devices in the network.
Second, scarcity
The creator, Satoshi Nakamoto, wrote down the total number of bitcoins when they created them, and his protocol (the Bitcoin protocol) stipulates that there will be no more than 10.5 million in 4 years, and that a halving will occur every 210,000 blocks generated, and the total number will be permanently limited to 21 million. This is also one of the reasons why Bitcoin is called a "digital" program.
Third, unhackability
Bitcoin's security relies on cryptography algorithms, and it has not yet been successfully cracked.
However, the emergence of quantum computers in the future may crack the elliptic curve encryption algorithm used by Bitcoin, but the value of quantum computers themselves is far greater than that of Bitcoin.
According to the latest research, cracking Bitcoin requires a quantum computer to have at least 31.7 billion qubits, and the most advanced quantum computer available today, the world's largest quantum computer made by IBM, Osprey, has only 433 qubits.
Does Bitcoin have any investment value?
Whether Bitcoin has investment value or not, this question belongs to the "benevolent opinion, the wise see the wise", some people think that it is **, and some people are digital**.
We believe that Bitcoin has a certain investment**.
The basis is as follows:1. Bitcoin has shown a good inflationary counterweight over the past few years
In the six years leading up to 2021, Bitcoin not only depreciated much less than the dollar, but it was much more stable, and most importantly it was not affected by any political decisions.
2. Recognition by Wall Street investors and the SEC
The most typical representative is the head of Ark Investment (ARK) Sister Wood (Cathie Wood) is a long-term bull on Bitcoin, and the world's top asset management institutions, such as BlackRock, JPMorgan Chase, Grayscale Capital, and Fidelity Investment Group, which have planted their heels in A-shares, have all participated in Bitcoin investment.
On the enterprise side, companies like Tesla, Microstrategy, Block, Twitter, PayPal, Meta Platforms all hold a certain amount of Bitcoin, and even Microsoft, the world's largest market capitalization, held Bitcoin in 2020.
The most significant milestone was the approval of 11 Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) in January this year, compared to only Bitcoin** ETFs before.