In December 2017, Bitcoin soared to a record high of 20,000 knives. The ever-rich story of the rich also attracted a lot of attention from mainstream media and the public to Bitcoin. People hope to understand what kind of technology can be Such an amazing rich effect. However, compared with Bitcoin's nearly 2 million times increase in nine years, the increase in Bitcoin in 2017 can be said to be dwarfed.
According to NewsBTC's March 28 report, an economist said that the value increase of Bitcoin is the fastest and most significant of all human assets, and this may be due to Bitcoin's unique code design.
(Source: NewsBTC )
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Economist: No asset can grow as fast as bitcoin
The economist Dr. Saifedean Ammoius is the author of The Bitcoin Standard. He spent a lot of time studying the first cryptocurrency that Satoshi Nakamoto designed ten years ago.
After the Bitcoin main online line, Bitcoin has embarked on the road of Daguai upgrade. It has gained a lot of attention from the beginning of the article, and maybe one day it will have the opportunity to become a common currency on the Internet. . In the ten years of Bitcoin development, even though there have been many warnings that Bitcoin is a bubble, after the bubble bursts, only the chicken feathers are left, but this can't stop Bitcoin after every bubble burst. Continue to grow and reach new heights.
(Source: Twitter )
According to Dr. Saifedean Ammoius, Bitcoin's growth over the past decade can be said to be the fastest and most significant of all assets in history, investing $100 in Bitcoin, Apple, Microsoft, General Electric and Google's parent company Alphabet, investment bits. The return of the currency is the highest.
Dr. Saifedean Ammoius explained:
Bitcoin is a new 'species' that is different from those of the previous ones. In other words, you can use the previous method of analyzing bubbles, currency or stocks to analyze bitcoin.
Halving production is the reason for the rapid increase in the value of Bitcoin
So what is the reason for Bitcoin to increase by nearly 2 million times in just nine years? Dr. Saifedean Ammoius attributed this phenomenon to the unique design of Bitcoin, which means Bitcoin adjusts the difficulty of mining every few years and reduces block rewards.
(Source: Twitter )
When Satoshi Satoshi designed Bitcoin, he used a consensus of workload proofs to verify each block that was newly added to the blockchain. When the miner does not dig a block to ensure the security of the network while verifying the transaction, he will receive a certain amount of bitcoin as a reward. The amount of Bitcoin rewarded by each block will continue to decrease as Bitcoin halved every few years. With each halving, the number of bitcoins dug by miners is gradually decreasing, which further breaks the balance between supply and demand of Bitcoin. The number of bitcoins sold in the market is small, and the price of bitcoin naturally rises. It is. As investors are also concerned about the halving of Bitcoin, their early 18 months prior to the halving of Bitcoin has further boosted bitcoin prices.
Bitcoin's next block reward is halved on May 23, 2020, and now is a good time to advance layout.
It is possible that after the halving cycle of such a round, the price of a bitcoin can reach $1 million. Let us wait and see.