Bitcoin, as a virtual currency, has always attracted much attention for its circulation rate. Is it high or low? Let's explore it in depth.

In today's digital age, Bitcoin, as a cryptocurrency, has a controversial circulation rate. Some people think that Bitcoin has a high circulation rate, while others think it is relatively low. So, what is it like? We will analyze from multiple angles to explore the real circulation of Bitcoin.

First, let's look at the daily transactions of Bitcoin. Globally, Bitcoin, as a digital currency, is widely used in various trading activities. Whether it is online shopping, cross-border payments or investment transactions, the use of Bitcoin is increasing. Many well-known companies have also begun to accept Bitcoin payments, further promoting the circulation of Bitcoin. For example, e-commerce giant Amazon recently announced that it will accept Bitcoin payments, which undoubtedly brought a certain increase in the circulation rate of Bitcoin. Therefore, from the perspective of daily transactions, the circulation rate of Bitcoin can be said to be quite high.

Secondly, let's pay attention to the holding of Bitcoin. According to statistics, the number of users holding Bitcoin worldwide is increasing. More and more people choose to convert funds into Bitcoin and hold them, which also indirectly promotes the circulation of Bitcoin. Especially in the field of financial investment, many institutions and individuals hold Bitcoin as a safe-haven asset, which has increased the circulation rate of Bitcoin. Therefore, from the perspective of holding, the circulation rate of Bitcoin can also be said to be quite high.

In addition, let's consider Bitcoin mining activities. Bitcoin mining is to confirm transactions and encrypt new blocks through computing power to obtain new Bitcoin rewards. With the prosperity of the Bitcoin market, more and more miners have joined the Bitcoin mining activities. This not only increases the total amount of Bitcoin, but also promotes the circulation of Bitcoin. Therefore, it can be said that Bitcoin mining activities are also an important reason for the high circulation rate of Bitcoin.

However, although the circulation rate of Bitcoin is constantly increasing, there are still some limiting factors. First, the price of Bitcoin fluctuates greatly, which leads some holders to prefer Bitcoin as a value storage rather than a transaction currency. Secondly, the transaction speed of Bitcoin is relatively slow, especially when the network is congested, the transaction confirmation time will become very long. This also affects the circulation efficiency of Bitcoin to a certain extent. Therefore, although the circulation rate of Bitcoin is constantly increasing, there is still room for improvement.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
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.

Bitcoin brings a whole new way of managing money. With the use of blockchain technology and the Internet, Bitcoin has become a thriving financial ecosystem over the years. The network is decentralized, and it is completely free from centralized control, including stopping transactions, freezing accounts, and requiring complex paperwork. And anyone anywhere can use the Bitcoin payment system as long as there is an Internet connection. The platform is completely inclusive. The circulation rate of Bitcoin is an indicator that many investors pay attention to before investing. Many investors are still unclear whether it is better to have a high or low circulation rate of Bitcoin. Let the editor of the currency circle introduce it to you.

 Is it better to have a high or low circulation rate of Bitcoin

As we all know, the less the circulation, the higher the price, and digital currency is no exception. First of all, to answer whether the circulation of digital currency can affect the price, we must equate the circulation of digital currency value with the circulation of currency value, that is, the quantity theory of money. The quantity theory of money is a bourgeois monetary theory that explains the relationship between the circulation of money and the general level of commodity prices.

Although there are various forms of expression of the quantity theory of money, its main content is generally the same. The basic content is: Assuming that other things remain unchanged, the general level of prices changes in direct proportion to the amount of money.

The quantity theory of money believes that money has no intrinsic and inherent value. The value of money is formed in the process of money circulation. The purchasing power of money depends directly on the amount of money in circulation. The purchasing power of money changes inversely with the amount of money. Assuming that other things remain unchanged, if the amount of money increases, the purchasing power of money decreases; if the amount of money decreases, the purchasing power of money increases.

The amount of money plays a leading role in determining the general level of prices and its fluctuations. Although changes in the speed of money circulation and the number of commodities will also cause changes in the price level, the fundamental and ultimate reason for the movement of the price level is still the change in the amount of money.

 What does Bitcoin circulation rate mean?

According to understanding, circulation rate = (total circulation/maximum supply)  100%. Taking Bitcoin as an example, the total issuance of Bitcoin is currently 21 million, and the circulation in the market is 18,850,443, so the circulation rate of Bitcoin is 89.76%.

At present, the concept of digital currency is still very controversial. From the perspective of currency issuance, digital currency mainly covers two main forms: official currency and unofficial currency. Unofficial currency is issued by institutions or individuals. Among them, the representative forms of currency mainly include Bitcoin, Citicoin and Litecoin.

The overall formation of these forms of currency has the characteristics of fast, convenient and fair. However, due to differences in regions and countries, there are great differences in the form and definition of currency. Take Bitcoin as an example. my country's laws and departments have very strict regulations on Bitcoin and prohibit Bitcoin from circulating in the economic market, but many European countries accept this form of currency.

I hope everyone can understand whether it is better to have a high or low circulation rate of Bitcoin through the above article. Using blockchain technology, computer networks can bypass any middlemen and facilitate the transaction of digital assets from one point to another. The value of Bitcoin is determined by supply and demand, and the price fluctuates when supply decreases and demand increases. When Bitcoin was created, it was written into its code that only 21 million Bitcoins existed. By limiting its total supply, the value of the currency is naturally deflationary, contrary to legal currency. Due to the significant growth in the value of Bitcoin over the years, many investors consider it to be a strong store of value.

In general, the circulation rate of Bitcoin can be said to be relatively high. Through the analysis of multiple aspects such as daily transactions, holdings and mining activities, we can see that the circulation of Bitcoin is increasing worldwide. However, it is also necessary to recognize some of the limiting factors that exist, which requires continuous improvement and perfection. It is hoped that with the continuous development of technology, the circulation rate of Bitcoin will be further improved, making greater contributions to the development of the digital economy.