Doubts about moving forward with virtual currency

Recently, I have heard more and more about virtual currency investment, but I still have no interest in researching related content, because just to learn the knowledge of the stock market will take up a lot of leisure time. currency.

Until a few days ago, I suddenly realized that after the matter was appreciated by others, the likecoin obtained was not also a virtual currency. Suddenly, the disinterest and lack of interest in the past all disappeared, and I began to wonder what virtual currency is. Such a thing, especially the earliest "Bitcoin".

search for bitcoin

So, I searched for "Bitcoin" and "Bitcoin investment" on the Internet, and the disappointing result is that the videos or articles that pop up are only a general introduction to the emergence of Bitcoin, the blockchain technology behind it, and other virtual currencies that extend concept, or boasting about how many times his wealth has multiplied in a short period of time, and what kind of exchange he will use to participate. There is no logical data to explain how they entered the currency circle, why they chose this investment tool, and what kind of thinking mode the operation is based on .

Market value

It is disturbing that the articles related to virtual currency investment are blank, and occasionally cite the opinions of experts to explain future trends, but Bitcoin has no fundamentals, no chip analysis , pure technical operations, and because of a report or celebrity speech, Instantly rising and falling, it is impossible to grasp its proper value.

Some people may think that Bitcoin has a total limit of 21 million pieces, which leads to the nature of scarcity . It will continue to soar a while ago, and the real value in the future is even less likely to be the current price. However, I have a doubt here. As a virtual currency, Bitcoin should have been used as a medium of exchange in order to replace the existing monetary system and achieve its value. However, at present, it seems that, except for El Salvador, which regards Bitcoin as legal tender, the current transaction mechanism is rarely included. Among them , most of them are only used as investment tools similar to gold. The only thing Tesla has said before is that it can be used as a trading medium, but it still terminated this plan.

value float

Now, only secret transactions may choose Bitcoin, because of its secrecy and untraceability , it can launder black money, but this extends another problem. The value of virtual currency fluctuates , unlike the stock market, which has a fixed value Bitcoin can be traded at every moment during the opening and closing time of the market, so the value can vary greatly between the previous second and the next second. If it is used for real trading activities, it will be difficult to define the price of the commodity. In one sentence, if you decide to buy and sell with one bitcoin, the amount you will spend in the next moment will exceed your expectations, and you will not be able to capture the common value of both parties, because it is not like the US dollar and the New Taiwan dollar. There is a fixed exchange rate in everyone's mind, Being able to convert at the moment is also the key point that virtual currency needs to consider.

Not to mention other types of virtual currency, the real value behind it is difficult to measure . Take likecoin as an example. Many people post on matter just expecting to get the support of others, and then convert it into virtual currency and then change it into cash. In theory, this is a business model that I appreciate very much, but the more articles there are, the more the total number of likecoins will increase, which will lead to a decline in value, which will dilute the value of articles written by most people, partly because of virtual The fluctuation of the value of the currency is not determined by the people we share the article with, but the influence of the buying and selling operations of those who invest in the currency.

Summarize

At present, I am still in the observation and research stage, and I am not willing to jump into it, and I am not writing articles to earn likecoins, so I don't care about the income of the articles, I just record my investment process and share my stumbles with Everyone, if there is more research on Bitcoin or virtual currency, I will write another article to discuss it.