Since December last year, it has been circling the long-lasting bitcoin. It seems that there has been a trend of prairie since this year. It has spurred all the way and rushed to the fast lane of "surge". The words "amazingly rising" and "unpredictable" have become popular words in many media to describe the bitcoin market.
However, the higher the climb, the more likely it will fall.
Bitcoin's skyrocketing market seems to have brought people back to the period of nearly 20,000 US dollars from the end of 2017 to the beginning of 2018. But in the following year, Bitcoin faced many times, and it fell incredibly into the bottom, and the cryptocurrency entered the winter.
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At that time, based on the unclear relationship with the currency price, the blockchain industry also fell from the wind. As the project closed and the industry withered, most of the blockchain companies began to lay off employees and converge over the winter.
Blockchain technology entered the people's field of vision and attracted much attention because of the fiery heat of Bitcoin. However, it was labeled "MLM" and "fraud" for no reason because of the emergence of various "cotton coins" and other foam projects. .
Bitcoin market is cold, and the blockchain industry is like a new one. The big manufacturers are entering the market, and the small factories are concentrating on technology. Under the support of the central government and the implementation of policies, the era of industrial blockchain has arrived.
Over time, how will the relationship between Bitcoin and blockchain technology evolve? In the face of the hot market in the face of the currency market, how will blockchain companies treat?
Why is Bitcoin soaring?
In the early morning of May 28, 2019, the founder of Fibos sent a friend circle, saying that he would chat with the original brand CEO Xin Xinxing, and did not want the bull market to come too fast. At that time, bitcoin prices once broke through the $8,900 mark.
According to the statistics of Bitfinex positions held by tadamoon website, since the beginning of April, the cryptocurrency has begun to fall into the crazy killing of “Air Force” and “Multi-Army”:
On April 23, when the bitcoin price broke through 5,500 US dollars for a short time, the bearers were mostly; after the bitcoin was short-selled, the side volatility rose, and the short-selling match with the bulls peaked on May 10 when the bitcoin broke through $6,300. The subsequent increase was even more unexpected. On May 14th, Bitcoin broke through $8,000 for a short period of time, hovering between $7,200 and $8,000, and breaking through $8,800 in the early morning of May 27.
Picture from todamoon
The price of bitcoin has experienced a magical half year, and the rise in the price of the currency has become a fact, but why it will rise, and will continue to rise afterwards, which is the focus of market analysis. The technical side has not been understood, and the reason must be analyzed from the fundamentals.
According to public information, the rise of Bitcoin is mainly due to four reasons: the large-scale off-site institutions, the admission of large funds; the tense international situation; the halving of bitcoin; the interest and exploration of the giants in cryptocurrency.
The rise in bitcoin is suspected of capital manipulation in the market. It is reported that there have been nine large transactions in the Bitcoin network recently, with a transaction volume exceeding 27,029 bitcoins, and one of them has 1,500 bitcoins flowing into the Bitfinex trading platform.
In addition, Bloomberg reported that Fiidelity Digital Assets, a subsidiary of Fidelity Investments, the world's largest asset management company, will launch bitcoin trading services. Bakkt, the cryptocurrency exchange of the parent company of the New York Stock Exchange, also announced that it will launch a bitcoin futures contract that complies with federal regulations.
The recent tensions in international trade and the sluggish stock market have made safe-haven assets popular, and Bitcoin has become one of the most important safe-haven options. In addition to external reasons, Bitcoin will halve for the third time in 2020, and the market's expectation of halving will also push up the price of the currency.
Zhu Youping, deputy director of the National Information Center's network management center and blockchain economist, said that the bitcoin rose by many factors, and many of them have solid innovations in the blockchain industry.
When the bitcoin market was in a downturn in 2018, the innovation of blockchain technology did not stop. “Technically, there have been significant progress in many innovations around TPS. Consensus from POW, to POS, DPOS, PBFT, etc., and even AI to the consensus algorithm, has made great progress. Lightning network, isolated witness, layering, fragmentation Various technologies, such as the chain, have made achievements."
Zhu Youping said that JP Morgan Chase's JPMcoin, Japan's Mizuho J-Coin, Facebook's plan GlobalCoin, etc., China's Tencent's blockchain invoices, etc., greatly stimulated the market imagination. "Bitcoin will not return to zero, the main reason is the blockchain belief support, it will be normal logic to fall when it falls."
Without Bitcoin, the blockchain industry will still work.
Blockchain technology initially entered people's field of vision is based on the enthusiasm of cryptocurrencies such as Bitcoin. Today, the development of the blockchain industry has become the support of cryptocurrency.
So what does the rise in Bitcoin mean for blockchain companies?
Xiangma said to the Zinc Link that many good, real-life companies have not done so well and finished doing so. "The bull market is too noisy, and the companies that do things really face rising personnel costs, market costs, and user costs. For companies that don't have money, the cold winter can take more and more impetuous competitors."
After the supervision of the September 4th 2017, most domestic blockchain companies have been compliant. According to the zinc link, these companies believe that the rise in the price of the coin has little to do with the development of the company, let alone talk about positive or negative effects. “Without bitcoin, the blockchain industry can still operate.”
Image courtesy of unsplash
Fun Chain Technology directly refused the zinc link interview, saying that the relationship between the two is really small.
Lu Yifan, general manager of the blockchain R&D and business unit of Ping An, said that the bitcoin is bitcoin and the compliance company is a compliance company. "Bitcoin is a casino that is willing to gamble and lose. Its rise and fall depends on the number of believers. Believers are on the move. Factors driving the development of the blockchain industry blockchain technology helps compliance companies earn legal currency."
Yu Zhibei, co-founder of the cloud-like blockchain, believes that now, unlike the two years ago, everyone has a clearer understanding of the blockchain. There is no direct relationship between the bitcoin skyrocketing and the application of blockchain technology. The attention of the blockchain may be re-emphasized, but at the application level, everyone will adopt a rational attitude. It is a truly valuable application to solve the pain points.
Han Gen, co-founder of Jinqiu Technology, believes that the development of the blockchain industry depends mainly on innovation in technology research and development and governance structure. It is necessary to improve the efficiency of collaboration and reduce the friction of credit.
Li Tianbai, chief scientist of Siyuan Group and chairman of Beijing Siyuan Internet Technology Co., Ltd., said that the current model of appreciation by the currency is a small probability event. Therefore, bitcoin rose following the overall recovery of the blockchain industry. However, the development of the industry mainly depends on whether there are obvious breakthroughs in some key value areas.
In this regard, Yan Ming, director of the Computer Security Professional Committee of the Chinese Computer Society, explained to the zinc link that Bitcoin, as a kind of virtual currency, has many problems in supervision, including money laundering, fraud, financial management, and cross-border mobile supervision. The technical support on which it depends is mainly the blockchain, which brings a not so good reputation to the blockchain. This is why many blockchain companies want to clarify their goals.
The fundamental driving force for the development of the blockchain industry
The rise in bitcoin prices may depend on the development of blockchain technology, but the driving force behind the development of blockchain industry has long been unrelated to the rise in cryptocurrency prices such as Bitcoin, and has embarked on an independent development path.
The innovation of the consensus mechanism, the lightning network, the isolation witness, the stratification, the fragmentation, the chain and other technologies, perhaps the companies that have gained a lot of money because of the cryptocurrency have participated in the research and development, but the blockchain technology is really Landing applications are more of the involvement of Internet giants and the “compliance” blockchain companies that specialize in blockchain technology services, and most of these companies are not concerned about the price of the currency.
2019 is the first year of blockchain application. According to the zinc link survey, important areas closely related to blockchain technology include bank clearing and settlement, cross-border payment, supply chain finance, logistics, digital identity authentication, product traceability, judicial copyright certification, privacy security, and The smart transportation, smart city, smart home and other fields of the cutting-edge technologies in the 5G era are all devoted to research and development.
Most of these areas have achieved typical projects, such as the clearing and settlement of JP Morgan's stable currency, the intelligent transportation of Tencent's electronic invoices, the construction of smart cities, the traceability of Alibaba's products, cross-border logistics, and Tencent's micro-enterprise chain. Chain Chain Technology's supply chain finance business.
Yan Ming told the zinc link that the starting point is different and the power source is different. There are applications for the purpose of supporting virtual currency such as Bitcoin to make money, but the application of blockchain has more meaningful aspects.
"There is currently a lack of data security applications that are not or difficult to establish. They do not have a common platform, do not establish a connection, but need the users who interact to ensure the security of their respective data. Such specific application scenarios There will be demand in many areas."
Yan Ming believes that not all areas require the application of blockchain technology, so it needs to be treated rationally. Market demand, such as the “requirements for self-organizing networks that protect their own data”, is a driving force for enterprise exploration and the development of the blockchain industry.
As a result, the market demand and practical application scenarios of specific areas have become the driving force for the development of blockchain.
On the other hand, Li Tianbai told the zinc link that blockchain technology and blockchain are not a meaning.
It claims that the precise definition of blockchain is now distributed ledger technology, which is closely related to digital currency. However, the scope of the books is larger, and it is divided into strict books and broad books. For example, certificates and certificates are also broad books. Strict books are highly related to coins, and broad books and certificates are more relevant.
Blockchain technology includes three key areas of subject authentication technology, end-to-end technology and ledger technology. The core is the decentralized application framework, which is the use of mathematics and cryptography to reconstruct the value system and data management system.
"This prospect is far-reaching. For network security, data privacy protection, digital assets, digital transactions, state management, and enterprise management, there will be tremendous opportunities for change."
Different definition angles determine the development direction of different blockchain industries, and also correspond to different industry development drivers.
For the definition of the blockchain distributed ledger, the application can be implemented at present; for the broader definition of the blockchain technology, to have a far-reaching impact, it may be necessary to rely on the development of other advanced technologies and supporting infrastructure in the 5G era. Perfect.
All in all, the fundamental driving force behind the development of the blockchain industry, Zhu Youping said, can be attributed to "chain reform", the logic of the blockchain transformation of the world is right. "Factors are the driving force behind human pursuit of innovation, the pursuit of a better life, and the pursuit of progress."
Known for the cryptocurrency but not relying on cryptocurrency, the blockchain industry is moving towards a robust path that focuses on technology research and development, meets market needs, and combines with the real estate sector. Although the rise in bitcoin prices depends on the blockchain industry, most companies and industry insiders are only taking a wait-and-see attitude, and the blockchain industry has entered a period of rational development.
No one can accurately predict how far bitcoin prices can go, but the application development path of blockchain technology, the roads, can be expected in the future.
Original question: Bitcoin soared, but the blockchain looked cold
© This article is copyrighted by "Zinc Link"
Text: Yi Baizhen
Editor: Wang Qiao