1 BTC = $ 5224, does Bitcoin usage currency make sense?

Vladislav Ginko, an economics professor who makes many people in the cryptocurrency community believe that Russia will buy a lot of bitcoin , recently said in Twitter that all standardized market capitalization indicators and "funded currency pricing" are meaningless.


Don't use bitcoin to price bitcoin

Recently, the cryptocurrency market has picked up, with bitcoin trading volume exceeding 3 million BTCs in the past 24 hours. Some speculate that some of the demand comes from institutions that entered the second quarter and authorized to buy bitcoin, but this only accounts for a portion of recent transactions.

In any case, for most cryptocurrency enthusiasts, Ginko's views on bitcoin and French currency pricing may be in line with their tastes.


He says:

All the terms of the currency are subject to corruption, prejudice and unfair value. Bitcoin does not need to be denominated in French currency. Bitcoin is always a fair way to assess all the assets in the world.

Hyperbitcoinization refers to Bitcoin being a world reserve currency in the future. Pricing for the entire economy will be based on its value in the Bitcoin blockchain. By then, Bitcoin will be as good or better than most government-issued currencies in everyday and financial life. In the long run, Bitcoin must have certain transaction processing capabilities. Even in the strict sense of the reserve currency, Bitcoin should be trading at millions of times per minute.

Based on this theory, the political structure that uses Bitcoin as a legal currency accessory will inevitably collapse. The government will have to succumb to Bitcoin as the only reasonable option, and the mining network will have to remain stable. By the 1940s, the reward for bitcoin mining will be reduced to a negligible level, which means that transaction costs must be sufficient to maintain a high-value network.

In the world of comprehensive "crypto monetization" in the future, using computing power to control the network will become the focus of the pursuit of all countries. Just as today is investing a lot of money in the military, in the future, there will be higher investment in the mining field. It has a place in the system.

Currently, traders must price the currency in bitcoin. This is unavoidable: the fiat currency still plays an important role in the encryption economy in order to trade and ultimately realize the benefits. While most industries have adopted blockchain technology – from real estate to manufacturing, all of these efforts are at an early stage. The current state of Bitcoin may shut out ordinary users, and in global economic activities, bitcoin usage actually accounts for one-tenth. Many expansion plans still need to be proven or need to be widely used.


In a sense, Ginko's point of view may be "1BTC = 1BTC", and Dan Held's recent tweet is the best proof:


If you buy it, it will fall slowly; if you buy it in the case of FOMO (fear of missing), it will collapse; if you speculate, it will slowly rise; if you fall into a panic selling, it Will soar; if you continue to hold, you will be rewarded.

If you don't sell your cryptocurrency, you will never lose anything. But when you really want to sell bitcoin or any other asset, pricing must be done in some form, whether it's a house, a car or a dollar, it will determine the first and most successful cryptocurrency in the real world. the value of.

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