It took only 17 days for Bitcoin to rise from US$20,000 to US$30,000, and then it took only 7 days to break through US$40,000 from US$30,000, setting a record high. It is equivalent to 259,000 RMB in one Bitcoin. Why is Bitcoin so fast?
First, briefly review the development of Bitcoin:
01
On November 1, 2008, Satoshi Nakamoto proposed the concept of Bitcoin
02
Officially born on January 3, 2009
03
On October 5, 2009, New Liberty Standard launched the service of USD trading Bitcoin
04
On May 22, 2010, a person named Laszlo Hanyecz bought 2 pizzas for 10,000 Bitcoins, and Bitcoin has a price
05
On February 9, 2011, the Bitcoin price of the world's first Bitcoin trading platform Mt. Gox reached $1 each!
06
On June 1, 2011, someone posted a Bitcoin transaction on the Silk Road, and attached a link to Mt.Gox to buy Bitcoin. Affected by this, the price of Bitcoin reached up to $31!
07
On June 19, 2011, a hacker hacked into the computer of the auditor of Mt.Gox, causing the price of Bitcoin in the system to drop to 1 cent overnight
08
On May 14, 2013, the US Department of Homeland Security concluded that Mt. Gox was not qualified for the remittance business and froze two bank accounts of Mt. Gox. Bitcoin fell from its highest point of $266 to $117.9!
09
On November 20, 2013, the Deputy Governor of the People’s Bank of China Yi Gang said, “The People’s Bank of China cannot treat Bitcoin as a legal financial instrument, but people can freely participate in the Bitcoin market.” He will also maintain a long history of Bitcoin. Time concern. Bitcoin price reached a peak of $1,132.26!
10
On March 6, 2014, New York Newsweek reported the article "The Face Behind Bitcoin". Saying that a programmer named Dorian Nakamoto is the creator of Bitcoin, he denied
11
On October 22, 2015, the European Court of Justice ruled that Bitcoin is a currency, not a commodity or an asset, and believed that it should be treated like a traditional currency in Europe, which encouraged Bitcoin supporters!
12
On July 9, 2016, Bitcoin ushered in the second reward halving in history, and the reward for each block was reduced from 25 Bitcoin to 12.5. In the life cycle of Bitcoin, there will be 21,000,000 Bitcoins issued. It is expected that the next reward halving time will occur in July 2020
13
On January 3, 2017, driven by major global events such as "Brexit" and the US election, Bitcoin rose sharply, reaching a maximum of US$1020.47. Breaking through the $1,000 mark for the first time!
14
On August 1, 2017, the hard fork Bitcoin Cash (BitcoinCash, BCC, BCH) was born
15
On September 4, 2017, the People’s Bank of China and seven ministries and commissions issued a document, “Raising Bitcoin, Ether and other so-called “virtual currencies” from investors is essentially an act of illegal public financing without approval. Currency bills, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities, any so-called token financing trading platform shall not engage in the exchange business between legal currency and tokens, "virtual currency", and shall not buy or sell or As the central counterparty to buy and sell tokens or "virtual currency", it is not allowed to provide pricing, information intermediary and other services for tokens or "virtual currency"." It also requires that "all types of token issuance financing activities should be stopped immediately." Bitcoin fell 35% in a week!
16
On October 13, 2017, the price of Bitcoin exceeded $5,000 for the first time!
17
On October 31, 2017, the Chicago Mercantile Exchange announced that it would list bitcoin futures contracts in the fourth quarter of 2017 and await relevant regulatory review. In the following month, Bitcoin rose from 5,400 US dollars to 19,890 US dollars, an increase of 268%!
18
On December 11, 2017, Chicago Board Options Exchange (CBOE) listed Bitcoin futures contracts as scheduled
19
On December 18, 2017, a new round of bear market in digital currency officially began. Bitcoin continued to fall from a high of nearly 20,000 U.S. dollars, and on December 13, 2018, the lowest point fell to near 3,000 U.S. dollars.
20
In March 2018, Lightning Network launched the Bitcoin mainnet.
21
Bitcoin is ten years old on November 1, 2018
22
In April 2019, the price of Bitcoin suddenly skyrocketed, reaching $5,000 at one time!
23
In June 2019, the price of Bitcoin once again exceeded $10,000!
24
In October 2019, the Political Bureau of the CPC Central Committee: Regarding blockchain as an important breakthrough in independent innovation of core technology, speeding up the development of blockchain technology and industrial innovation
25
Bitcoin encounters Black Thursday on March 12, 2020, falling from $8,000 to $3,150
26
Bitcoin encounters Black Thursday on March 12, 2020, falling from $8,000 to $3,150
27
On May 12, 2020, Bitcoin mining rewards were halved for the third time, and the output was reduced from 12.5 to 6.25 BTC
28
On July 26, 2020, the price of Bitcoin once again exceeded $10,000
29
The price of Bitcoin hit a record high on December 16, 2020, reaching $21,500.
30
On January 2, 2021, Bitcoin exceeded $30,000.
31
On January 2, 2021, Bitcoin exceeded $30,000.
32
On January 8, 2021, Bitcoin exceeded $40,000.
It can be seen that since the birth of Bitcoin in 2009, its first price was about $0.0025 when it was purchased in 2010. The price increase since the birth of Bitcoin has exceeded 12 million times!
In other words,
At the beginning, 1 RMB was invested and 61.3 Bitcoins could be purchased. Now the value of the position is more than 12 million RMB. If you invested 100 yuan at the beginning, you would make more than 1.2 billion!
Why is Bitcoin rising so rapidly in 2020?
01. Currency spam
In the past year, the Federal Reserve has issued more than 3 trillion U.S. dollars in currency, which is equivalent to three-quarters of the total U.S. dollar issuance in the past 108 years. This has led to the decline of the U.S. dollar, loose liquidity, and inflow of cryptocurrencies.
02. Growth in demand from institutional buyers
The growth in demand from institutional buyers has begun to see Bitcoin as a hedge against inflation. The total supply of Bitcoin is only 21 million, which is in stark contrast to the Federal Reserve and other central banks that constantly print banknotes. Many institutions enter the layout.
03. It is easier for retail investors to buy
Retail investors can buy directly on PayPal and Square. For example, Paypal's daily cryptocurrency transaction volume has exceeded 125 million U.S. dollars and is constantly expanding.
04. Epidemic
The epidemic caused the Federal Reserve to lower interest rates to near zero. Investors invested a lot of money in Bitcoin and other cryptocurrencies to seek higher returns.
05, Bitcoin halving
Bitcoin halving is also the halving of Bitcoin miner rewards. After three halvings, namely in 2012, 2016, and 2020, the increases were 15900%, 250%, and 303%, respectively. It also proved that 100% of the halving year was an increase. It is "Things are precious."
The scarcity of Bitcoin and the Fed’s “crazy printing of money”, as well as the belief that Bitcoin actually has many attributes of gold, as well as unusual value in terms of transactions. Bitcoin buying has skyrocketed, and there is a serious shortage of Bitcoin on the exchange, which can only be solved by raising the price.
In the same currency circle, Bitcoin has skyrocketed, but FIL file currency is unique? As stable as a stable currency, even falling?
Investigating the reasons, the most important thing is the need for the official ecological layout. The sharply fluctuating FIL currency price is not conducive to manufacturers' purchase of currency pledges.
As a distributed network designed to store the most important information of human society, the other core is data storage. This is not a pure blockchain mining project. The development of the project cannot be maintained by consensus and autonomy alone.
Recently, Fileocin officials continue to emphasize Fileocin’s ecological construction and encourage participants to actively develop storage businesses. For example, storing real and effective data can get 10 times the computing power. Space Race 1 and 2 have also been encouraging storage scale, storage requirements and applications. After landing, when a large influx of storage demand and a balance between supply and demand, the currency price will continue to rise.
From another perspective, the current investment layout is the prime time and the lowest cost of obtaining FIL. The number of FIL coins determines the amount of wealth in the future. As the data stored on Filecoin's main network grows, the price of FIL will increase. This is an unchangeable driving factor.
FIL will grow faster than Bitcoin of the year
In 2009, Bitcoin made the world realize the greatness of blockchain technology, and is known as the 1.0 version of blockchain technology, but who founded it is still a mystery.
The emergence of Ethereum in 2014 promoted the development of smart contracts in blockchain technology. It is known as the 2.0 version of blockchain technology. Its founder is V God.
IPFS appeared in 2015, and the Filecoin mainnet was launched in 2020, making storage safer, faster, and more robust, and building the next generation of Internet transmission technology, known as the 3.0 version of blockchain technology.
FIL and Bitcoin have a constant total amount and will never be issued. Bitcoin has been online for one or two years without a price. FILCOIN is the world's first cryptocurrency with a price that has not yet been online. Moreover, it has government and capital support from the beginning, and its development speed will exceed that of Bitcoin in the past.
The implementation of Filecoin data storage is similar to the application and promotion of Ethereum smart contracts; besides, the ecological development of Filecoin applications is much faster than the original Ethereum. It has been online for more than 2 months, exceeding 1.8EB and more than 1,000 nodes. Therefore, the fall of FIL currency is temporary, and the rise is an inevitable trend.
Historically, both Bitcoin and Ethereum have seen huge increases. And now Filecoin has just started and has deep cooperation with Ethereum. It is mutual need and promotion. The future value is predictable. It is the best investment opportunity among mainstream tokens currently globally agreed.
IPFS is not just storage, but the next generation Internet
HTTP centralized storage is a server and client mode. All the data is on the server. The more servers the company is, the more powerful it is, and it does not communicate with each other. It is difficult for anyone who wants to challenge them, because building a lot of servers, IDC computer rooms, broadband, etc., these massive resource advantages and huge capital advantages are the moat.
The next generation Internet represented by IPFS distributed storage is completely different. Everyone is on the same network, and all data files in the entire network are in the same file management system. File data can flow freely throughout the network without stagnant nodes or original servers. Entrepreneurs, as long as they pay some FIL, throw files on the network, and have their hash value, they can access it globally, without renting servers, bandwidth, and building computer rooms. This way the company starts as a global enterprise.
Therefore, we firmly believe that distributed storage is the next generation of the Internet in the future. It will definitely come because it can greatly reduce the cost of file storage and circulation, etc., and many absolute advantages are adapting to 5G, big data, and Networking, the inevitable trend of artificial intelligence. High value determines the price increase.
therefore,
Filecoin has received 257 million U.S. dollars support from famous capital before it went online. The mainnet was launched on October 15, 2020. Only less than 3 months have passed. Globally active vendors have reached 1,058, spread all over the world. They have ranked 31 among the world’s major cryptocurrencies, with a market value of US$958 million. The current circulation is only about 51 million. It can be predicted that a total of 2 billion FILs will be issued globally, and with the rise of currency prices, it will become the world's largest cryptocurrency by market value in the near future.
Investment requires faith and persistence
If you have no faith, even if you bought Bitcoin in 2009, perhaps you sold it early, how could it be tens of millions of times? Who is the next Bitcoin? Obviously it will not be called Bitcoin, but will appear under another name, such as FIL currency. It requires a clear understanding, firm belief, and determination to move forward.
This society is always the law of 28. No matter how good the project is, if you don’t know it well and don’t have a deep understanding, you won’t have firm confidence. When you encounter setbacks and price fluctuations, you will not dare to hold it. The great human project IPFS/Filecoin in front of us will also experience ups and downs in growth and fluctuations in currency prices. This is also the most challenging time, especially when expectations are different from reality.
Only faith can persist. The more FIL is suppressed artificially at present, the more violent it will rise. Let us keep our eyes on it!