Why do people believe in Bitcoin (Why does Bitcoin exist)?

08/13/2023 07:11 • Metaverse Matters • 148 views

Why do people believe in Bitcoin (Why does Bitcoin exist)?

Why do people believe in Bitcoin? According to bitcoinist, people believe in Bitcoin because it is a new form of value storage and currency. In recent years, more and more institutional investors have entered this field, and these companies are seeking strategic investments from hedge funds, asset management companies, and financial services that provide products and services such as digital gold. With the rise in the price of Bitcoin, it has become the preferred method of payment for many people. However, it is not used as a medium of exchange or commodity, but as a method of transaction and value storage. Therefore, it is necessary to establish a reliable method to ensure that its price remains relatively stable and maintains a high level.

Why does Bitcoin exist?

The birth of Bitcoin is to solve the trust issue people have with it, allowing anyone in the world to participate in transactions. In the past year, we have witnessed many significant events: the US government started accepting Bitcoin as a currency to pay economic expenses; central banks around the world announced the issuance of their own digital currency to support global economic development; countries such as the UK and Australia actively promoted their CBDC pilot work; Canada, Singapore, and other places are also undergoing digital transformation to prepare for future developments. Why does Bitcoin exist? Looking back at history, two major events have happened: one is the collapse of the legal reserve system due to the economic crisis at the time, and the other is the suspension of asset purchases by the Federal Reserve after the outbreak of the COVID-19 pandemic. If the use of bank accounts is stopped now, it means that the future inflation rate will decrease. But at the same time, all of this is caused by the US dollar. Therefore, to deal with such disastrous events, a large amount of fiat currency needs to enter the encrypted market.

Firstly, it is about the application of blockchain technology. The emergence of blockchain technology not only brings improvements in information storage and transmission efficiency but also enables many financial institutions to establish their own business models with it. For example, if you want to register a company or corporation in one place, you can receive corresponding rewards. Secondly, blockchain technology provides a more secure way to ensure data privacy and security. “Blockchain” can become one of the most popular technologies because it is the first data structure generated automatically by algorithms, and this distributed ledger can guarantee that all users’ funds are traceable on the chain. This means that even in network congestion, it is completely transparent, and as long as someone is willing, they can view these account records anytime and anywhere, thus achieving open, fair financial settlement and management. Finally, the introduction of the Bitcoin mechanism, because Bitcoin itself is a peer-to-peer electronic cash system. Bitcoin is designed as a “smart contract”, and everyone can run nodes on it and create their own applications. Then, everyone can use it to perform various operations, such as:

1. Create a new block.

2. Set a new block timestamp.

3. Modify Bitcoin rules.

4. Update Bitcoin hash value.

5. 1inch token reward.

6. Add more trading pairs.

7. Add more liquidity.

8. Increase more trading pairs for faster transactions.

9. Reduce the price difference between exchanges.

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Why do people believe in Bitcoin (Why does Bitcoin exist)?

Why does Bitcoin exist?

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