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Currency Circle Analysis Why are Bitcoin’s transaction attribut

Date:2024-06-02 19:20:00 Channel:Crypto Read:

In the exploration of the currency circle, Bitcoin as an encrypted digital currency has attracted much attention. Why is Bitcoin's transaction attribute better than its storage attribute? Let's analyze it in depth and uncover this mystery.

Bitcoin's transaction attribute is unique in the currency circle. First of all, Bitcoin's decentralized nature makes its transaction process unnecessary for a third-party intermediary, ensuring the security and speed of the transaction. For example, when user A transfers Bitcoin to user B, the entire transaction process will be recorded on the blockchain, making the transaction transparent and tamper-proof, eliminating risks such as double payment.

In addition, Bitcoin's transaction fees are relatively low, making small transactions more feasible. Compared with the high handling fees of traditional financial institutions, Bitcoin's transaction fees are almost negligible, providing users with a more convenient transaction option. This low-cost transaction attribute has attracted more and more people to join the ranks of Bitcoin transactions, promoting the popularization and application of Bitcoin worldwide.

In addition, Bitcoin's transaction speed is also one of the important reasons why it is superior to storage attributes. Traditional bank cross-border transfers may take days to complete, while Bitcoin transactions can be confirmed within minutes, achieving instant arrival. This fast transaction attribute makes Bitcoin an ideal choice for cross-border payments, especially favored by international trade and cross-border e-commerce.

However, Bitcoin's storage attribute is relatively weak. Due to the sharp fluctuations in Bitcoin prices, there are certain risks in holding Bitcoin. Although Bitcoin has achieved huge appreciation in the past few years, its price volatility has also brought considerable pressure to investors. Therefore, compared with stable storage tools, Bitcoin is more suitable as a highly liquid digital currency for daily transactions and investments.

In general, the main reason why Bitcoin's transaction attributes are superior to its storage attributes is its decentralization, low transaction fees and fast transaction speed. These advantages make Bitcoin a leader in the field of digital currencies today, leading the development trend of the currency circle. In the future, with the continuous innovation and improvement of blockchain technology, Bitcoin's transaction attributes will be further strengthened, bringing more possibilities to the global financial system. Bitcoin is not only a digital currency, but also a revolutionary financial tool, opening a new chapter in the human financial system.

The four most famous international exchanges:

Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
Binance International Line OKX International Line Gate.io International Line Huobi International Line
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.


As the price of Bitcoin keeps rising, people who come after him always like to make fun of this incident, thinking that the programmer should regret it to death, or be unlucky, to borrow a popular phrase nowadays: "Missed 100 million". On May 22, 2010, a programmer named Laszlo Hanyecz used 10,000 Bitcoins to buy 2 pizzas. This was the first time that Bitcoin showed its payment function in the real world, and it was also this iconic payment that gave Bitcoin a price in the real world. The value of two pizzas was $25, so the price of one Bitcoin at that time was 0.25 cents.

As the price of Bitcoin keeps rising, people who come after him always like to make fun of this incident, thinking that the programmer should regret it to death, or be unlucky, to borrow a popular phrase nowadays: "Missed 100 million". In my opinion, this programmer should be the one who will least regret it. Because, if this programmer had not spent Bitcoin as money for the first time, making virtual Bitcoin valuable for the first time, and letting the original technical geeks realize the payment possibility of Bitcoin in the real world, would Bitcoin have grown to today?

If Bitcoin should be used for large payments, collections, and storage, and is digital gold, as Core supporters say today, then we only need to exchange money for Bitcoin to avoid the depreciation of legal currency and wait for wealth appreciation.

According to this idea, the programmer who bought pizza at the beginning should also do the same, "hide" the large amount of Bitcoin he mined, not use it for payment, not for exchange, and then wait for appreciation, wait for a few years to become a billionaire, or even the richest man. If he really did that, Bitcoin might really only be a self-entertainment for some programmers.

Bitcoin that lacks liquidity cannot appreciate, or even maintain its value. Some Core supporters may think that Bitcoin is exquisitely designed, and the total amount is fixed and rare, so its value will continue to rise. The technical concept of Bitcoin is indeed excellent, but to be honest, among the altcoins, competing coins, and even air coins currently on the market, which one has an inferior technical concept? Some are even significantly better than Bitcoin. The total amount is fixed and rare, which is debatable. Compared with legal tender, 21 million Bitcoins are indeed rare, but compared with collectibles, they are not good enough. Most antiques, calligraphy and paintings, jewelry, etc. can be regarded as collectibles because they are rare and unique in addition to the significance of the times. Bitcoin is just a string of code, without much added value.

Therefore, the biggest reason why Bitcoin can rise all the way, apart from a series of coincidences and a little artificial hype, is that the designer of Bitcoin, Satoshi Nakamoto, said in the white paper that it can be used as a peer-to-peer electronic cash system in the real world, so that online payments can be directly initiated and paid to another party without going through any financial institutions in the middle. It was also because of this that it first flourished in the dark web. Therefore, the liquidity brought by its payment is the reason to ensure the continuous rise in prices.

Unfortunately, after Satoshi Nakamoto disappeared, Bitcoin seemed to be moving further and further away from this path under the leadership of Core. The biggest manifestation was the establishment of BS, and most of BS's shareholders were Core members.

On the other hand, let's look at how Bitcoin Cash (BCH) did it. Due to the transaction congestion caused by the Bitcoin block limit, some knowledgeable people reached a consensus and no longer listened to the stubborn Core, splitting Bitcoin Cash from Bitcoin. This approach not only solved the transaction problems that had existed before, but also restored many old excellent designs in Bitcoin Cash, such as some new codes added by the hard fork upgrade, expanded the op-return data carrier, and "resurrected" the lighthouse crowdfunding platform. On the one hand, these practices are to make BCH gather the strengths of many companies and make BCH safer, easier to use, and more diversified through continuous technological changes; on the other hand, the community hopes to promote Bitcoin Cash through various methods to let everyone use BCH and experience the charm of cryptocurrency firsthand, so that BCH can truly be used by the public. Only in this way can Bitcoin Cash maintain and appreciate its value in a healthy way.

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