cryptocurrency bitcoin

Bitcoin, Ripple feature comparison

Bitcoin, Ripple’s long-standing competitor, was developed in 2009. Needless to say, it is a virtual currency that can be exchanged online between people who have been authorized to use it to pay for goods and services. Currently, there are about 1,000 sites where Bitcoin can be used.

Bitcoin is gradually increasing by digital mining, that is, new Bitcoin is added to the existing Bitcoin currency supply, and is determined by a complex algorithm. 

In the real world, to stabilize the economy, the government determines rates based on the number of products traded in the market and issues new currencies. In the Bitcoin economy, new Bitcoin will be presented to individual users who have agreed to launch a mining program on their computer. You can read more here about the online marketing tips

Grayscale report

Grayscale, a major US investment fund, released a report on the quantitative easing policy of Bitcoin (BTC) and the central bank, saying that BTC is increasing its value as a safe asset.

As each country continues to implement quantitative easing measures as an economic stimulus measure against the spread of new coronavirus infections, the amount of cash supply will increase and the value of fiat currency will decline. On the other hand, BTC has an upper limit of supply and will reach its half-life this month. 

This report also refers to government bonds and gold as investment destinations when the economic situation is uncertain to explain the rationale for evaluating the value of BTC. In comparison with their financial asset, it pre-issuance is determined to 21 million BTC, also include a feature that digital on assets such issuer must not have as a central bank, BTC is worth saving means, And it also serves as a risk hedge to the ability to increase supply at will.

This tendency suggests that long-term holders continue to hold BTC regardless of price fluctuations, and explained that this is a positive tendency. However, it has not been confirmed since October 2016 before the 2017 virtual currency bubble.

He also points out that the correlation with other assets is gradually decreasing as a basis for evaluating the value of BTC. On the other hand, it has been said that gold, which has been a safe asset for a long time, has shown a historically high correlation from 2019 to 2020 Q1 (January-March).

From this, too, it can be seen that BTC is functioning as a safety asset. Below is a graph showing the correlation between BTC, Gold, and the US Stock Index S&P 500. The period is from January 6, 2017, to April 23, 2020.

There are many types of virtual currencies. Among them, Bitcoin (BTC) boasts a high profile. Most people who are interested in virtual currency trading will consider Bitcoin (BTC) as one of the trading targets.

You want you to grow further in the future because it is a transaction target. Therefore, I will introduce the factors that will influence the future, such as whether Bitcoin (BTC) will continue to grow, or will it fall into valueless. There is no precise definition of a crash, but generally, it means a significant price drop in the short term. Bitcoin (BTC) has experienced more than one crash, not just once.

Bitcoin price is a mechanism that is determined by supply and demand. Therefore, it is natural for the price to fluctuate.

However, if the price fluctuation range is too large and the value is likely to fall sharply, you may feel uncertain about the future of Bitcoin (BTC).

Most of the Bitcoin price crashes that occurred in the past are caused by changes in the environment surrounding Bitcoin (BTC), not by price changes due to changes in the value of Bitcoin (BTC) itself.

For example, news such as exchanges being hacked and cryptocurrency leaked, and certain countries banning the use of Bitcoin (BTC), etc. are the causes of the crash. The important point is that the Bitcoin (BTC) rating itself has not crashed.

It is important to understand that the security of the Bitcoin system itself has never been compromised and lost trust. Bitcoin prices can indeed continue to plunge.