As a virtual currency, the circulation rate of Bitcoin has always attracted much attention. So, what does the general explanation of Bitcoin's circulation rate mean? We will explore this topic in depth from different angles.

When talking about the circulation rate of Bitcoin, it is inevitable to involve the technical foundation behind it - blockchain. As the support of Bitcoin, blockchain technology provides it with characteristics such as decentralization and high security. The circulation rate of Bitcoin reflects the liquidity and frequency of use of this digital currency in the market. Taking Bitcoin as an example, its high circulation rate means that more people use Bitcoin in transactions, thereby increasing its market circulation and improving its market recognition.

In addition, the circulation rate of Bitcoin is also affected by the supply and demand relationship in the market. When the market demand for Bitcoin increases, its circulation rate tends to increase accordingly. In this case, the price of Bitcoin may fluctuate, attracting the attention of investors. On the contrary, if the market demand decreases, the circulation rate of Bitcoin may be affected to a certain extent, and even cause the price to fall.

In the financial field, the circulation rate of Bitcoin is also regarded as an important weather vane. By monitoring the circulation rate of Bitcoin, we can better understand the market's acceptance of digital currencies and make more accurate investment decisions. Some investors even use the circulation rate of Bitcoin as one of the important indicators to measure the value of their investment.

In addition to market factors, policies and regulations also have an impact on the circulation rate of Bitcoin. The continuous adjustment of the regulatory policies of some countries on digital currencies may have a certain degree of impact on the circulation rate of Bitcoin. For example, some countries are cautious about the legal status of Bitcoin, which may limit the circulation scope of Bitcoin in the country, thereby affecting its circulation rate.

In general, the general explanation of the circulation rate of Bitcoin refers to the liquidity and frequency of use of this digital currency in the market. It is affected by many factors such as technology, market, and policy, and is of great significance for understanding the development trend and investment risks of the digital currency market. In the future, with the continuous development of the digital currency market, the circulation rate of Bitcoin will also become a highly concerned indicator, leading the development direction of the digital currency industry.

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.

With the seamless functionality of cash, "always open" availability, and the fact that it can be transferred anywhere in the world in minutes, Bitcoin is an excellent medium of exchange. Anyone can use Bitcoin as a payment method for goods and services - many merchants around the world accept this cryptocurrency, or as a means of storing value. As long as the person has an Internet connection, they can send and receive Bitcoin. Bitcoin's circulation rate is an indicator that many investors will pay attention to, which has a certain role in the judgment of Bitcoin. Some novice investors still don't know what Bitcoin's circulation rate means? Let the editor of the currency circle tell you.

 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 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.

 How is the liquidity of Bitcoin?

You can cash in legal currency in any corner of the world. More than 18,900 exchanges around the world provide trading services, with an international trading volume of 30 billion to 50 billion per day, which can be cashed at any time.

Why is the liquidity of Bitcoin so strong:

1. Bitcoin allows us to be responsible for our own assets

That is, become "our own bank". The thing banks fear most is an economic crisis. Remember the 2008 economic crisis affected the banking system worldwide?

2. Bitcoin exists independently of the national asset system

The total amount of Bitcoin is determined by the source code, which cannot be changed at will. Even the state has no right to change it, and it is not regulated by the central system.

3. Bitcoin allows us to no longer forget passwords

If we achieve self-management of assets, we need to be responsible people, after all, the private key is kept by ourselves! Don't forget to back it up.

4. Bitcoin leads us to achieve free asset management

When you first come into contact with new things, you will feel a headache. When you choose it, you are not fighting alone. There will be like-minded partners to help you anywhere. No longer let assets lose "freedom" for asset security.

The content above is a popular explanation of the question of what Bitcoin circulation rate means by the editor of the currency circle. Due to its high value, Bitcoin is not only used for online purchases, but also as a good investment. For example, they are popular among people in countries such as Venezuela, who buy them to avoid losing their savings due to high inflation. However, like any investment, the value of Bitcoin will decline over time, which you should always keep in mind. One of the big advantages of using Bitcoin is the low fees for transferring money. You can send and receive payments at a very low cost – often for free. In any case, the fees are lower than what you would have to pay if you were to do business through a bank.