How Long Can Bitcoin Go Crazy?

From the supply side, Bitcoin Low supply can not support the economy

Bitcoin is doomed to collapse. This is an unchanging fate. Bitcoin has great value, for example, easy to reserve, difficult to steal, and difficult to forge forged trading medium. Especially, it will not cause species extinction (such as white beet teeth or ivory) and so on. It will not cause direct damage to the environment. Unfortunately, people familiar with Nobel Paul Krugman prize winner Paul Krugman about the "liquidity trap" know that the known and limited supply of bitcoin means that it is doomed to fail to become an effective alternative currency.

In addition, bitcoin does not have obvious use value (which is different from platinum), so the currency will be completely destroyed. But the defect of bitcoin is generated during the execution of this currency, rather than its own idea.

Money is not a commodity in itself. There is no support behind bitcoin.

　 currency Also known as general equivalent, although it has certain investment attributes, its main function is to act as a medium in commodity trading.

However, no matter how bitcoin flaunting its own advantages over traditional currencies, the intensity of its price fluctuations still makes its stability comparable to that of Zimbabwe currency. Almost no one continues to use bitcoins to trade commodities. In 2012, only 1000 merchants in the world supported bitcoin payments. This year, an American couple claimed to have made a round trip around the world by paying bitcoins, but then they were caught in a scandal of cheating: they bought goods and services in cash, but they bought the store in advance to play the bitcoin transaction, doubting speculation about bitcoin.

Speculation is obvious.

Bitcoin is not born to be hyped, its "de centralization" design structure is to avoid any agency (such as issuing central banks in traditional currencies) to manipulate the total amount of money, or to create inflation. Even so, bitcoin has failed to escape speculation, just like all other valuable new things that have ever appeared.

Huang Zhen, director of the Institute of financial law of Central University of Finance and Economics, points out that money should be used as a general equivalent for transactions. But bitcoin has become the principle of bitcoin in investment products. It is different from the principle of traditional currency. Ultimately, it can subvert the traditional currency, depending on how many people believe bitcoin. In his view, bitcoin is more like paper gold than a strict currency. Overall, bitcoin investors will face three risks: weak practical value of bitcoin, great political and legal risks, and poor platform security.

　　 All countries Central Bank Won't let bitcoin have a good life.

There is no doubt that bitcoin phenomenon will change the existing rules of the game. To a certain extent, it is destructive, because it reminds people of the most abstract attributes of money, and at the same time, it promotes the way of online transactions. In extreme scenarios, it even has the potential to destroy sovereign currencies, just as the file sharing system Napster erode the music industry. But this prediction is still a fantasy. The system runs in the current form and is likely to fail due to the strategic flaws in the design.

Unlike the government's authorized monetary system, bitcoin can not provide shared common interests for social money holders. For example, the US dollar, the euro or any other sovereign currency, no matter how valuable they are in the open market, the holder can ensure that the state's tax is guaranteed by its currency. Bitcoin is not the case. The system is neither part of the tax system nor the assistance of any national wealth pool.

There is a worrying prospect for Chinese mothers in bitcoin.

At the beginning of May 2013, the Wall Street predator raised the butcher's knife that was short of gold under the instruction of the Fed. Black gold fell 20% on Monday and the world was in an uproar. Unexpectedly, a group of "Chinese mothers" were killed, 100 billion yuan, 300 tons of gold were swept away, and how much gold was sold by Wall Street. In the face of this game, Chinese private capital seems to be brilliant in the process. But for the gold that has long lost its monetary value, is it still wisdom or reluctantly to hoard the value of "Chinese mothers"?

As a virtual currency of the Internet, bitcoin started the second surge in the year from the beginning of July, and the price jumped from $200 to $more than 440. The price of bitcoin and RMB traded in the currency net has exceeded 2700 yuan, and the number of bitcoin transactions exceeds 45 thousand. What is interesting is that the data of the website show that 40% of the VIP users with a total transaction volume of more than 10 million are women, which once again shows the investment courage of "China's aunt".