Traditional Culture Encyclopedia - Traditional festivals - Bitcoin lacks the endorsement of the real economy. Why did so many people like it before the crash?
Bitcoin lacks the endorsement of the real economy. Why did so many people like it before the crash?
Many people are optimistic about Bitcoin for the following reasons. The first reason is that Bitcoin will not be inflationary, because Bitcoin is a virtual currency. Other physical currencies will have some inflation, especially in times of economic crisis or recession, which will make people feel that their money is getting less and less valuable, but Bitcoin will not be inflationary, because Bitcoin was invented to fight some inflation.
Bitcoin is actually good for some reasons, because its confidentiality is good, many people use it for bitcoin transactions, and it is also very popular on some websites. There are some websites in many countries that recognize the value of Bitcoin, and because people issue a lot of money and the economy slows down, coins have experienced a series of depreciation, but Bitcoin will never depreciate, so many people will choose to invest in Bitcoin to make money.
Generally speaking, the price of bitcoin fluctuates greatly. Although Bitcoin lacks multiples of the real economy, many people are still very optimistic about Bitcoin, mainly because Bitcoin is not inflationary, and Bitcoin is highly confidential and will not be limited by many factors. If it is RMB or the currency of other countries, it is generally issued by the central bank, and the existence of banks is not confidential.
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