What happens if everyone only buys Bitcoin and doesn't trade?
Recently, the currency circle has been hot, and the digital cryptocurrency represented by Bitcoin has returned to people's field of vision. In particular, the news that bitcoin returned to 8,000 dollars a few days ago has been on the hot search. The enthusiasm of other digital cryptocurrencies seems to be rekindling, and the volume of transactions in the secondary market is hotter than the bear market that was previously unwarranted. Some people say that the bull market is back. The picture below shows the bitcoin at the high point of impact 9000 at the time of writing.
In the hot market, it seems that the former investors who are disheartened are back, and in addition to these traditional bitcoin investors, there are many small white novice players who have also invested in this hot market. Before talking to a few white investors, I discussed a lot of bitcoin and blockchain related introductory theories and topics. One of the topics is very interesting. If people buy bitcoin in the bitcoin market, they don’t sell it. So what happens? Very interesting, come talk to everyone today.
In fact, Bitcoin should be no stranger to everyone, and from the white paper at the beginning of the birth, it is written: a peer-to-peer electronic cash system, which is destined to have the property of trading from birth, and bitcoin The white paper can also see the ambition of Ben Cong, the father of Bitcoin.
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The basic technology on which Bitcoin itself is based has never been seen before. This technology is blockchain technology. The cryptocurrency generated based on this technology is characterized by the fact that it is completely possible to conduct transactions directly without requiring anyone to be a middleman or a guarantee. All traditional currencies, including tokens on the Internet, have their own owners. For example, the US dollar belongs to the Federal Reserve and the Q currency belongs to Tencent. As long as you use these currencies or tokens, you must pass the intermediary. Bitcoin is completely different. Two strangers can proceed to trade without knowing it, and transfer wealth directly from A to B. This is indeed an invention that changes the world.
Let me first take a look at what happens when there is less money in the market in the traditional financial industry. In fact, this phenomenon can be imagined as another kind of deflation, that is, the appreciation of money in the market, because the money becomes less, so the money becomes very valuable, the price will also become lower, the profit rate of the enterprise will fall, production Gradually stagnated. In the end, even if you have money, you can't buy anything. At this time, the financial market will be completely stagnate and economic development will be hindered. This is a very unfavorable situation.
And if in the world of digital cryptocurrency, bitcoin is only bought and not sold, what happens when the bitcoin circulating in the market becomes less? In fact, it will have very serious consequences, but it will be slightly smaller than the impact of the real world.
If everyone only uses coins and does not use them at all, the most direct consequence is the appreciation of Bitcoin, because supply is in short supply. And if there is no transaction in the market for a long time, Bitcoin may really rise to the sky-high price, then some people may ask, if you do not trade the Bitcoin network, why not? In fact, it is not because there is a mine, so the bitcoin-based operating network is completely no problem, and because of the appreciation of Bitcoin, the competition in the mine may be more intense. The final calculations may be twice or even three times the current total power, reaching a very surprising level.
But even if Bitcoin becomes deflation, it will be less destructive than the real world, because in the real world, the currency of a single country is unique. For example, the US currency is the US dollar, and the British currency is the British pound. In the world of cryptocurrency, there are very many currencies circulated, and no one can only use bitcoin. If the price of bitcoin takes off, then if you have to pay for the cryptocurrency you just need, you can use it, Taizu, grapefruit or wave field. It is ok to replace it. Therefore, the soaring single currency price will not cause a devastating blow to the world of digital cryptocurrency.
Someone once said that Bitcoin will rise to $1 million in 2022, but if Bitcoin is not traded, it will probably be in the hands of Bitcoin to achieve this goal. But think about this kind of thing that can happen? Perhaps with a look at Bitcoin to 10,000 US dollars, it is estimated that most people can't sit still. Maybe by the time of 20,000 US dollars, most people will put the bitcoin in their hands and trade them again. It can only be said that the fact that no one is trading bitcoin is still not happening in the real world. What do you think of your friends? Welcome to leave a message for discussion.
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Source: Win and Finance – Nanjing Blockchain
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