Bitcoin hits $57,000 again: I discussed these issues with the experts

Today is March 12th. Bitcoin has once again reached $57,000 per coin, rebounding strongly from the low of $43,000 on February 28th. This rise has attracted the attention of many investors, but facing such a high point, everyone is worried about whether they can enter the market?

I didn’t quite understand it either, but since there must be a teacher among three people, I asked a friend of mine to answer a few questions.

1. What is the value of blockchain and digital currency?

Technically speaking, blockchain is a decentralized distributed ledger that solves the double-spending problem. This revolutionary invention can only appear in the Internet age, and its users can only be netizens with basic Internet and financial knowledge. For the first time in human history, or at least the first time with realistic possibilities, it has pointed out to humans the possibility of directly conducting money transactions without banks and other financial intermediaries. Monetary economy is the highest stage of commodity economic development, but due to the huge economic scale, various financial institutions are inevitably generated, and blockchain has technically demonstrated the non-necessity of these financial institutions.

2 What is the difference between Bitcoin and digital currencies issued by central banks?

What the central banks of various countries issue is just the digitization of their paper money. The central banks of various countries have the final say on how much to issue. my country can issue, and other countries can also issue. In the end, it is just the digitization of the current monetary system. There is no essential difference between the issuance and circulation mechanism and paper money. Compared with the current various mobile payments, there is not much difference. It is just that the currency unit has changed from the "yuan" in various payment software to a "central bank version of digital currency". There will also be inflation. The value is closely related to the credibility of the issuing authority, which is bound to be restricted by specific countries or regions. The credibility cannot be as great as Bitcoin.

3 The central bank does not support Bitcoin, so why do people still buy it?

As the base currency of digital currency, Bitcoin does not need the support of the central bank. On the contrary, the digital currencies issued by central banks of various countries can only be circulated globally if they are linked to Bitcoin. Technological progress is irreversible, and blockchain technology is one of the irreversible technologies. As the saying goes, "Once you have seen the sun, you can no longer tolerate the darkness." Once it is produced, it can no longer be ignored.

Tulip price chart

4 Is there a bubble in digital currency now?

Yes, and the bubble is huge, very huge. But how to view the bubble rationally requires consideration.

First of all, the value judgment of bubbles is different when viewed from different groups and different historical scales. As the saying goes, big waves bring gold, and there must be bubbles under big waves.

The first famous tulip bubble in history, which occurred in the Netherlands, gave birth to the prototype of the modern financial system.

American Railroad Map

The great railroad construction bubble in American history also greatly accelerated the pace of infrastructure construction in the United States.

The world's leading Internet companies were all born in the early stages of the bubble

There will always be pearls in bubbles. From the perspective of historical development, the positive significance of bubbles is even greater than their negative significance. Of course, from the perspective of individual investors, it is important to exit the market before the bubble bursts.

It is human nature to pursue profit. Speculation, investment, and various economic activities are all for profit. However, there is no definitive answer to the extent to which profit should be pursued. After the bubble bursts, people realize that it was a bit too much. But before the bubble bursts, it is difficult to find that it is a bubble. Marx also admitted that without capital, a railway could not be built in 200 years.

Aircoin scam

Secondly, in my opinion, there only needs to be one digital currency, and we need to wait and see who will win in the end. Now there are thousands of digital currencies, which is a bubble. What is even more annoying is that there are all kinds of air coins and pyramid scheme coins in the guise of digital currencies, which make digital currencies a mess. In short, it is best not to enter the market blindly without your own investigation and understanding.

How far are we from quantum computers?

5 Does Bitcoin have no disadvantages?

The biggest crisis facing Bitcoin right now is the computing revolution brought about by quantum computers. Once quantum computers are commercialized, they may force the private key to be cracked, which is a rather troublesome matter. Because Bitcoin is a digital currency based on technology and algorithms, any existing government or power cannot deprive you of your Bitcoin without your private key, but technology can. However, when the enemy comes, the general will stop him. When the water comes, the earth will cover it. Everything develops in twists and turns, and it is impossible to be smooth sailing.

6. Can you tell me what is the greatest value of Bitcoin in your opinion?

People are born as individuals, with nothing but freedom and time. But for various reasons, they will give up their freedom and time to various groups, which take various forms, such as families, societies, political parties, countries, and international organizations.

In modern society, this kind of concession is still relatively civilized, and individuals will also obtain voting rights and various powers.

In most periods of history, this loss of freedom and the waste of time were bloody, and it is difficult to go into details.

Individuals and collectives are logically in conflict, and how to protect individuals so that they can be treated fairly in such conflicts has always been an issue that various thinkers and noble politicians have been trying to answer. However, the final conclusion is still to use the collective to protect the interests of the individual, but to try to make the collective consider the individual a little more.

Who is Satoshi Nakamoto, the father of Bitcoin?

But the emergence of Bitcoin provides individuals with another better choice. Individuals can form a Bitcoin alliance to maintain their own rights, and this alliance will not be eliminated or banned by anyone due to the guarantee of technology and algorithms. Therefore, as long as the conflict between humans and the collective exists, Bitcoin will have value. Moreover, the lower the credibility of a government and the greater the cost of social governance, the more popular Bitcoin will be. Of course, all this cannot guarantee that it will not rise or fall sharply, because profit-seeking is human nature.

7 Do you have anything else to say?

As a Chinese, when my country's economic output is approaching that of the United States, it will eventually surpass the United States. Why is the internationalization of the RMB still following the old path of the British pound and the US dollar? Why are blockchain and digital currencies not available in my country? The mainstream digital currencies with more credibility are basically developed abroad. All the new currencies developed in my country have been proven to be scams, so that ICO was completely banned in the end. This makes me very sad.