As the most valuable digital currency, bitcoin's price keeps rising, which makes the Bulls make a lot of money, and Bears lose all their money. For a long time, although the controversy about bitcoin continues to exist, on the overall trend, bitcoin continues to be favored by all parties. Bitcoin has penetrated our lives faster than we thought.

Now that global investors have chosen bitcoin, the price of bitcoin continues to rise. What is the logic behind it?

First of all, under the haze of the global epidemic, the excessive issuance of US dollars has caused inflation. The world's top investors are losing confidence in US dollars, and the US dollar has not been very attractive to them. Against this background, the US dollar is weakening, and bitcoin is emerging as an emerging asset.

Moreover, for bitcoin, there are several features that are very in line with the needs of current investors: first, bitcoin, like commodities such as gold, carries the hope of blockchain emerging technology companies, just like when the electric vehicle industry was an emerging technology last year, they would buy Tesla crazily.

Second, bitcoin is built on the cryptography based blockchain network. It is decentralized and not tracked by any organization or individual. In other words, there is no bank as an intermediary between bitcoin transactions, which is also the core reason for attracting a large number of young people to buy bitcoin.

Third, there are only 21 million bitcoins, which means that there is no inflation. Bitcoin does not anchor US dollar, gold and other mainstream investment assets, which have a very low correlation, making it a safe haven asset and a very good means of asset allocation in the period of economic instability.

What's more, most investors are different from the previous two years. In the past, they were speculating, but now they are hoarding.

At present, the illiquid supply of bitcoin accounts for the vast majority, which shows that a large number of institutional investors are taking bitcoin as an important means of asset allocation, and it is a long-term investment.

"In the past, Buffett said bitcoin had no value, but now bitcoin has a new spokesman - that is, Elon Musk."

As we all know, Tesla bought a lot of bitcoin some time ago, and said that it could use bitcoin to buy cars in the future.

It is believed that bitcoin and blockchain will accelerate their penetration into our real world in 2021, and bitcoin and blockchain will become the most important area of all capital in 2021.

(2021.3.16)