Bitcoin price surges 249% in January, may reach $40,000 per coin in the future

China News Service, November 19. Recently, the price of Bitcoin has been rising like a rocket. China News Service IT Channel found out from Bitcoin China that as of yesterday, the transaction price of 1 Bitcoin has reached 3,490 yuan, while a month ago, the price was only around 1,000 yuan. This means that in the past month, Bitcoin has risen by about 249%.

It is not reliable to make money by "mining"

It is understood that there are two ways to obtain Bitcoin: trading and "mining" (obtaining Bitcoin through complex calculations on the Internet). Faced with the rising price of Bitcoin, many people have begun to consider "mining". However, the blue ocean of "mining" has long ceased to exist. According to a Taobao shop owner who sells "mining machines", "mining" requires mining machines. The higher the performance of the mining machine, the greater the probability of obtaining Bitcoin. However, in the future, the computing power of the entire network will become higher and higher, and the income from mining will also take a sharp turn for the worse. At the same time, the price of advanced mining machines is getting higher and higher, which sets a considerable "threshold" for "mining".

In addition, according to the design principle of Bitcoin, the output of mining will decrease as the number of Bitcoin increases. Last year, 50 Bitcoins could be obtained from mining once, but this year it has dropped to 25, and the output will become less and less. It is understood that the limited number of Bitcoins is 21 million, and in April this year, there were already 10.8 million on the market.

However, this has not stopped the "crazy" performance of Bitcoin, and the momentum of "mining" has not diminished. "Bitcoin speculation" is becoming more and more popular in China. A research report published by the technology website Business Insider recently showed that "the largest Bitcoin trading platform is now in China, replacing the demand from Japan, the United States and Europe."

Although the price of Bitcoin continues to rise, "speculating on Bitcoin" is still risky. Wang Yinping, chief analyst of Guolian Futures, said that Bitcoin itself is a virtual currency on the Internet. Only a few countries recognize the legal status of Bitcoin. Generally speaking, it has no guarantee, including guarantees from real industries and government regulatory departments.

Bitcoin is moving towards payment

The continued rise in Bitcoin prices has also caused heated discussions. Netizen @Roy Li believes that Bitcoin is electronic gold, and it plays the role of gold rather than banknotes. @李铁军 believes that Bitcoin is a collectible and does not have monetary value. This collectible is actually worthless, and the person who takes it will lose everything. However, Beijing Garage, Guoke Electronics, and Baidu Accelerator have successively announced support for Bitcoin payments, and some developers have even launched physical properties that support Bitcoin purchases. It seems that Bitcoin is moving towards payment.

If Bitcoin performs well in payment, will its value rise further? At a recent trading discussion in New York, the Winklevoss brothers said that the total market value of Bitcoin will exceed $400 billion in the near future. If this prediction is true, based on the number of 10.8 million Bitcoins on the market in April this year, this means that each Bitcoin will rise to around $40,000 in the future.

In June of this year, when the Winklevoss brothers disclosed their Bitcoin ETF fund plan, they were ridiculed by some American media. They believed that Bitcoin was not reliable and also doubted the brothers' IQ.

Regulatory policies may be introduced

As Bitcoin develops towards payment, it also arouses concerns from relevant departments. It is understood that Bitcoin transactions are not under the supervision of banks, and some people question whether Bitcoin will be used for illegal activities, such as money laundering and drug purchases.

In view of this, last Friday, the New York State Department of Financial Services announced that it would hold a public hearing to discuss legislation on virtual currency, and whether to issue a "BitLicense" license to manage the trading market of online currencies such as Bitcoin. This has caused heated discussions, and many people are worried that the introduction of these regulations may reduce the attractiveness of Bitcoin and cause Bitcoin to depreciate.

However, Bitcoin is circulated around the world, so it may not be easy to monitor. Some media analysts believe that traders will use the "squeezing toothpaste" method to avoid monitoring by making small and multiple transactions, which further increases the difficulty of monitoring. Moreover, Bitcoin uses anonymous transactions, and users can open multiple accounts, and the pseudonyms have nothing to do with their real identities in real life.

Australia's Daily Computing reported on the 16th that Bitcoin is exchanged between people and does not involve a third party, so it is more resistant. In addition, it uses passwords to ensure the integrity of transactions, which makes it almost impossible for outsiders to obtain the identity details behind the transaction. In addition, the authorities can close countless Bitcoin trading accounts, but as long as one account is left, Bitcoin can be revived. (China News Service IT Channel)