Bitcoin has continued its rise for several months. At the end of May, once it broke through 9,000 US dollars, it quickly fell back. Bitcoin finally stabilized above 9,000 US dollars. Some analysts believe that this is mainly due to Facebook's recent release of the Libra encryption digital currency white paper.
Previously, a number of traditional financial institutions and technology companies have been deployed in different ways in the area of encrypted assets and blockchain, but the impact seems to be incomparable with Libra. Some people even think that this is the most important event in the field after the launch of the Bitcoin main network in 2009.
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Although it is obviously different from most encrypted digital currencies on the market, for example, it is linked to the “one basket” of real assets, there is no longer a big ups and downs in the price of coins, and it is impossible for everyone to profit from mining, but this is still considered to be a district. Blockchain and asset digitization have injected a “cardiotonic agent”.
In December 2017, Bitcoin ushered in an all-time high and once approached $20,000. However, since then, it has plummeted first, and then fluctuated downwards in “returning warmth” and “cooling”, and by December 2018 it had fallen to around $3,000.
However, since April this year, Bitcoin has suddenly "recovered", and its price is now nearly three times that of the beginning of this year. The entry of large companies and institutions, the expectation of a “half-half” cycle for Bitcoin, the “unstable” stability of the currency, and changes in the global trade situation were once thought to be the main reasons for the rise in currency prices, and now Facebook is working for Bitcoin. And the future of the crypto-asset market has added new variables.
"Libra" boosts bitcoin rise?
In the view of Yu Jianing, the president of the University of Fire Co., two evolutionary paths have emerged since the birth of Bitcoin and the blockchain. One is based on bitcoin, based on blockchain technology to give it more functions and achieve greater value. One of them represented Ethereum, trying to build a next-generation Internet infrastructure and a distributed global computer operating system.
The other way is to improve and optimize Bitcoin, and try to make it a truly usable “electronic cash payment tool to build a global high-speed and convenient payment network”, the most typical of which is bitcoin bifurcation such as BCH. And Libra is closer to the second path.
“It can be understood that Facebook is along with Nakamoto’s original intention to create a global, more usable and easy-to-use electronic cash payment tool in a more realistic, compliant and feasible way.” He is a reporter for the 21st Century Business Herald. Said.
BlockVC, a blockchain venture capital firm, talked about the recent gains in Bitcoin. The founder of the organization, Xu Yingkai, believes that the release of the Libra project white paper is not enough to have a substantial impact on the entire crypto asset market in a short period of time.
He pointed out to the 21st Century Business Herald reporter that Bitcoin has gained more and more attention from traditional financial institutions, and this continued optimism is closely related to the rise in bitcoin prices. However, Yu Jianing believes that the rise in bitcoin prices is indeed related to Facebook and Libra, although in fact, their impact on Bitcoin is both positive and negative.
Yu Jianing pointed out that if some people use Libra to turn assets into encrypted assets, it will increase the internal liquidity of the entire encrypted assets, which is equivalent to adding more than one billion "potential holders" to Bitcoin. "Facebook believes it will attract more than a billion users and move assets to the field of encrypted assets."
On the other hand, Facebook is trying to make Libra a “better bitcoin”, although its property as a stable currency does not conflict with Bitcoin, but it may be attractive to more ordinary investors. This will attract investment that would otherwise flow to Bitcoin.
"But overall, it may still be more positive." Yu Jianing said, "The entry and diversion of large institutions in the field of digital assets has a very positive significance for Bitcoin as a whole."
However, for the performance of Bitcoin's market outlook, Fang Hao, president of the Guangzhou Internet Finance Association, is not optimistic. “In fact, if you think about the success of Facebook, if you have a more secure and stable investment choice, why buy Bitcoin?” He said, “In the long run, bitcoin prices will bear in the future. Downside pressure, because the most deadly point of bitcoin is that the currency does not have any government or institutional endorsement."
He is worried that some ordinary investors who have not made purchases in the past due to the regulatory difficulties of Bitcoin in various countries may regard large companies such as Facebook into the digital currency field as “stations” and even think that governments are regulating Bitcoin. The future may be relaxed.
Can Bitcoin really "recover"?
Prior to this, Bitcoin rose 110% in three months. When the price of the currency broke through 7,000 US dollars, Yu Jianing analyzed the 21st Century Business Herald reporter. The mainstream institutions are completing the layout of the market and the Bitcoin “half cycle”. Factors such as the approaching are the main cause of price increases. Today, he continues to maintain this analysis after Bitcoin's gains have continued and stabilized above $9,000.
"But the most important thing is the impact of the entire economic cycle." Yu Jianing said, "As the global economic uncertainty increases, the safe-haven properties of Bitcoin itself become more and more obvious." He believes that Bitcoin is not an electronic "cash" ", but an electronic "gold" – it is not a payment tool, but a value storage tool.
Xu Yingkai told reporters in the 21st Century Business Herald that it is still too early to judge whether the sentiment of the encrypted digital currency market has reversed. Today, Bitcoin has broken through $9,000 and Facebook has also made high-profile admissions. Xu Yingkai’s views are still cautious. "This market has already gone out of the bottom of the market, but the development of the future market still needs to wait for the market to make further choices."
However, he still pointed out several "recovery" signals. For example, Bitcoin has finally broken through the long-term sideways price of $6,000, and the current price is almost three times that of the beginning of the year; on some exchange data, the single position has exceeded the short position in May; including institutional investors. A group of investors are entering the market at a premium; in addition, the number of transfers and active addresses of the chain transactions continue to rise.
A person who entered the "coin circle" in 2012 told 21st Century Business Herald that the current ecological environment of the blockchain and encryption asset industries has changed a lot. The most significant and most important is the ICO frenzy of cooling, most of the ICO projects have gone bankrupt or cooled.
On the other hand, the lightning network, which is technically committed to improving the micropayment function, is being rolled out. A number of technology and financial companies are also entering the market in different ways. For example, Samsung has begun to build a bitcoin wallet on the new mobile phone. Fidelity Investments began offering Bitcoin asset management services to its clients through its subsidiaries.
Many people in the currency circle believe that this means that Bitcoin is "more and more mainstream." "The prospect of Bitcoin in the long run is optimistic, and short-term prices will still fluctuate, but the possibility of a sharp decline is already very small." The aforementioned people are optimistic.
However, Fang Wei still questioned the speculative investment in Bitcoin. "In fact, many people don't understand Bitcoin, just because they believe that the price will be higher in the future. Bitcoin still has a lot of doubts about supervision." He said, "The difference between the digital currency that Facebook intends to issue and Bitcoin is Where? Many people are actually not clear." (21st Century Business Herald)