Bitcoin is a kind of blockchain technology product in the Internet era, which is hard to be hyped into digital gold. The reason is worth pondering. Bitcoin is now at a high of $50000, and it has, to be honest, hit many people who sing the empty bitcoin, but it does not affect the continued look at bitcoin. Bitcoin's current price does not explain any problem, that is, it cannot represent its own price, nor its future price. Bitcoin is clearly just a set of data, why so many people are willing to support it. In addition to the policy influence, bitcoin depends on the supply-demand relationship.

As the saying goes, "being is reasonable", bitcoin can grow to the trillion scale now, which also shows that the market needs it now. Bitcoin does have its own soil, but the reason for it is not necessarily apparent. In fact, when discussing bitcoin, many people's views are contradictory in themselves. People who look at bitcoin list many advantages, such as decentralization, encryption and preservation. In fact, bitcoin has these three characteristics under certain conditions, but there are some deviations in understanding these three characteristics.

Bitcoin wants to match the traditional French currency system, which can be said to be the current gold standard monetary system, and the goal is the world's monetary system. But for some countries with stable monetary system and management, it is unlikely that cryptocurrency such as bitcoin will be allowed to develop. But some of the monetary systems are not perfect, or countries and regions with relatively chaotic state management need a new monetary system to carry out secured transactions. For example, the famous old Zimbabwean currency was almost the same as the waste paper, and the national needed foreign currency such as US dollars to carry out security transactions.

But why choose the dollar, not Thai baht and Korean currency, this involves the practicality and the preservation. Bitcoin needs to improve its practicability and preservation if it wants to play the role of intermediary, but these are not existed in the earlier stage. Bitcoin's reward to miners is to create an image of bitcoin, but the early rewards are low. Bitcoin also has some fans in the process. After all, the mining is made of real gold and silver, but these are not enough.

Bitcoin wants to become a monetary system, in addition to increasing its own value, it also needs to ensure sufficient liquidity. If bitcoin can't trade anywhere, it can only meet the needs of a small number of people. So someone suggested that he supported bitcoin shopping, and that boss bought pizza with 10000 bitcoin, which was a turning point of bitcoin. Then someone built a bitcoin ATM to support bitcoin withdrawal, which allowed bitcoin to enter a benign cycle. Although there are data showing that bitcoin can support about 7 transactions per second, it is impossible to meet the needs of too many people, but it has certain value as long as it can be traded.

But since bitcoin is just a set of data, why can so many people support bitcoin? The answer is only one, is the trend of interests! Different groups have different interests for bitcoin, some of which are betting on the future and some are concerned with the handling fees of bitcoin transaction. Of course, it is more important that some people have seen the characteristics that bitcoin can encrypt transactions. This encryption is not about the security of bitcoin itself, but the security that can always escape supervision. More frankly, someone wants to do something special through bitcoin, such as transferring assets.

Some things are hard to put an end to. In fact, even if bitcoin is not developed, some people escape supervision in other ways. If we only unilaterally take this reason to crush bitcoin, and may solemnly stress some people's minds, they can enjoy the benefits of it alone. What the role of bitcoin is still to be determined, but one thing is certain is that the interest chain of bitcoin has been spread. Nowadays, bitcoin is a pseudo central monetary system. Around the capital of bitcoin, it can make a lot of money by using bitcoin.

The state's attitude towards bitcoin is very important. Although it can not support some special uses of bitcoin, it can not watch them do whatever they want.

(2021-3-21)