Will Bitcoin Continue Go Crazy?

Since August, the price of Bitcoin has increased crazy.  As of August 8, 2018, the price of bitcoin hit a record high of $3500 trillion, and it has risen to 4405.91 dollars on August 14. Although it fell to 4130 U.S. dollars from the high point on August 15, it rose nearly 30% in just one week, up 316.11% per cent from 997.69 trillion dollars at the start of the year, killing any other investment asset. Goldman Sachs is expected to rise to $4827 trillion in the short-term price of the bitcoin currency. If that is not a big increase, the current price is nearly 58,000 times times the 2010 ‘s historic minimum of $0.06 trillion . If this does not satisfy you, then someone initially used 10000 bitcoin to exchange 25 dollar Pizza coupons, that is, 0.0025 dollars/Bitcoin, according to this calculation, the current price of bitcoin is about 1.7 million times times the original. At present, the total market value of Bitcoin has reached 66.9 billion U.S. dollars, slightly higher than the market value of 65.2 billion U.S. dollars. See here, you know why Bitcoin is now a hot news, because many people are think they’re should be billionaire if they bought some Bitcoin.

Bitcoin Mining

Recently, Bitcoin has become more and more frequent, and the term “Bitcoin mining” is becoming more and more familiar. “Block chain” because it involves the financial science and technology fintech and gradually become a hot topic in the market, but in fact the block chain is also a core principle of Bitcoin. Each block corresponds to a billing, linking all the blocks is a block chain, any transaction information and transfer records are recorded in the block chain. Note that the block chain exists throughout the Internet, so any Bitcoin holder is not worried about the loss of the Bitcoin currency. Every other point in time, the Bitcoin system will generate a random code on the system node, all the computers in the Internet can look for this code, who found this code, will produce a block, then get a bitcoin, this process is often said to “Dig mine.” Computing this random code requires a large number of GPU operations, so miners (who run bitcoin “ore machine” and confirm the transaction) purchase massive graphics cards to point out more computing power and thus gain more quickly from Bitcoin. “Miners” also often form what we call the “mine pool,” where each member connects each other’s computers together to dig blocks and then distributes the rewards of “digging”. In order to improve the computing power of the computer, the miners aimed at the high-performance hardware GPU, but a large number of crazy to buy video cards caused the “one card difficult” situation, manufacturers in short supply helpless to break the goods, which led to the black market in the price of video cards. Because electricity is cheap, large-scale operation, in China’s Sichuan, Guizhou, Inner Mongolia, there are large-scale Bitcoin mine.

Governments Atitudes All Over the World

From the first moment of the emergence of Bitcoin, it has been debated, because it can be released and traded in a peer-to-peer fashion, bypassing a series of related regulations in the financial system around the world, or it will break the prolonged financial system and endanger global financial security. On February 9, 2011, the price of bitcoin hit $1 trillion, and the market became more interested in the dollar’s equivalents. From a global perspective, Japan was the first country in the world to officially accept Bitcoin as a legitimate currency; The US Commodity Futures Commission classified bitcoin as a commodity, U.S. states introduced regulations, and the German government backed bitcoin, but taxed the deal; Britain admits bitcoin as a currency , the Russian government is about to take Bitcoin as a legitimate financial instrument.


Will Bitcoin Continue Go Crazy?

Bitcoin’s current global recognition has increased, but it is not very high on the whole, and one of the reasons for the recent rally is that the US is likely to recognise it as a financial asset, and if the SEC refuses to acknowledge it again, the price could turn downward.

There is a competitive relationship between the various digital currencies. Although Bitcoin was the first electronic currency to appear in the market, and thus gained the attention of most media, many people think that the block chain of the ether square and the Ethernet currency based on this technology will become more powerful tools. This kind of competition relationship will affect the price to some extent, the direct consequence is the huge fluctuation, which is a difficult point to solve for a currency.