Why do some people say that Bitcoin is worthless but has a price?

With the birth of Bitcoin, the controversy about it has never been interrupted. Everyone has their own views on Bitcoin. Zhengfang said that Bitcoin is a very great invention and completely created a new production relationship. Providing another advanced option for future high productivity, some even referred to the blockchain technology behind Bitcoin as the most indispensable component of the fourth industrial revolution.

The opposite side believes that Bitcoin can be called the biggest two scams with diamonds since the 21st century! It is meaningless and very resource intensive, and it is completely useless to waste resources.

It is a very normal thing to have a big controversy about a product. If you like it, you must be annoying. As a financial product, Bitcoin itself is very controversial and normal. After all, it can be bought relatively easily in the secondary market, and those who buy the money must say that bitcoin is good, and investing in losing money will inevitably complain. But is the fact really that simple? Let's simply dig a digging why the bitcoin controversy is so big.

It is well known that Bitcoin was born in 2009, but it is only 10 years ago. The father of Bitcoin, the father of the newly born bitcoin, is actually very simple. It is a point-to-point (P2P) payment, and these two points are not directly needed. Through a third party, you don't need to know, you don't need to know who the other person is, you can pay him the money, think about whether it is a very interesting thing.

• Opinion: Bitcoin has no "intrinsic value", but it is still the best value storage medium.
• This country has 200,000 BTCs and 200,000 BCHs, which may be higher than the UK's gold reserves in the future.
• Xiao Lei: To defend the renminbi, China needs to use three secret weapons.

However, since 2016, as people's understanding of Bitcoin has continued to increase, the economic value of Bitcoin itself has risen with the rise of water, from a few hundred rmbs at the beginning to hundreds of thousands of rmbs. And as prices continue to climb, the controversy is constantly growing.

These disputes have also been accompanied by the growth of Bitcoin until today. If you don't look at the parties to the dispute, the disputes that only focus on Bitcoin itself are actually very simple, that is, a few, 1. Is the price of the currency appropriate? 2. Is there a practical application? Value, 3. Whether there is investment value.

Let's look at the price first. The price of bitcoin has always been a very interesting thing. At the beginning of the birth, it is not necessary to say that the price is naturally not high. At that time, Bitcoin was only a tool for exchanging rewards between programmers or password geeks. The first publicly recorded transaction was the story of the famous 10,000 bitcoins for two pizzas, and the two pizzas were converted to today's currency worth about 400 million RMB. Later, someone interviewed the programmer who bought the pizza. The programmer smiled and said that the pizza was delicious.

After 2016, the price of Bitcoin showed explosive growth, starting from a relatively stable sideways price. By the end of 17th, it reached a peak of about 20,000 US dollars. In the face of such skyrocketing currency prices, there was a large amount of capital entering the market. At this time, Bitcoin also completed the gorgeous turn from the peer-to-peer payment system to the object of capital scrambling. At this time, the controversy naturally comes. If people who make money in the secondary market are likely to praise the investment value of Bitcoin, if the loss of money will inevitably produce negative feedback. The chart below shows the sharp fluctuations in currency prices since 2016.

In terms of practical value, both sides have always been controversial. Although Bitcoin itself has low practical value and limited application scenarios, the blockchain technology behind it has been constantly developing. Supporters believe that blockchain Although technology has not been around for a long time, it has undergone several generations of changes. The recognized bitcoin is the first generation application. Ethereum ETH is the second generation, and grapefruit EOS is the third generation (this doubt), while other applications There are more scenarios, such as cross-border finance, supply chain finance, traceability, and so on.

The opponents believe that there is no complete killer application that allows people to really see the blockchain technology, so that ordinary people have a sense of beauty and can enjoy the true charm of technology. This is actually a problem of the blockchain industry, because it itself In fact, it is a solution to improve the production relationship, and a killer application based on blockchain technology is really lacking.

In fact, from a long history, a technology needs a long period of time from invention to maturity to familiarity with the general public. It is still in the early stages of blockchain technology. When the blockchain technology is truly mature, discussions like the value of Bitcoin can really stop. What are your opinions?

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Author: white

Source: Win and Finance – Nanjing Blockchain

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