"Bitcoin zeros" sounded in Davos, but these 10 reasons can make the sniper shut up completely

time:2019-01-25 15:46:00

"I think Bitcoin will be zero. I think it's a great technology, but I don't recognize it as a currency. It doesn't have any foundation."
Jeff Schumacher, founder of BCG Digital Ventures, said at a panel discussion at the Davos Forum in Switzerland.
Bitcoin prices fell by 80% in 2018, which also caused many bitcoin bearers to “sacrifice” and they believe Bitcoin will return to zero. This is actually the same as saying "bitcoin is dead". However, in the past 10 years of Bitcoin, it has been "dead" hundreds of times a year.

Below we will use the following points to refute the idea of "bitcoin zeroing":

 

1. Bitcoin actually has a lot of foundations

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To name a few - Bitcoin is based on the largest public key encryption deployment in history to protect a very clever system architecture network, creating the world's first open source, decentralized, peer-to-peer, peer-to-peer bank.

 

2. The dollar really has no foundation.

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For the most devastating critics of the US central bank system, the Fed, it’s really amazing to hear that all these mainstream media experts claim that Bitcoin is not a real currency and lists the characteristics of the Fed. Reassured.

 

3. Bitcoin is not the blockchain itself

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In the article linked above, you will find a cliché: the real excitement is not Bitcoin, but the technology behind it - the blockchain.

This is wrong. The blockchain is only part of the Bitcoin network architecture.

 

4. Bitcoin is "which blockchain"

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In addition, if we want to emphasize the blockchain, then which blockchain is a very relevant issue. Companies create some “blockchains” within the company to take the hype trains, which are completely different from Bitcoin. They are just boring old databases.

Bitcoin is the currency of the Internet.

 

5. Bitcoin is not a fanatic like a beanie or a tulip fanatic

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The most interesting thing is that bitcoin is not a blockchain, and blockchain is a very interesting and important part of how Bitcoin networks work.

Most interestingly, Bitcoin is a private currency and banking system that offers different product characteristics than those offered by the central bank, and they are all excellent features.

What needs to be clear is that I think they are excellent features.

But the fact is that Bitcoin's innovative product features make Bitcoin a highly valued and highly sought after commodity, creating the first viable global private money market.

Bitcoin can do this, which is really interesting.

 

6. Bitcoin is the most intense cryptocurrency in the battle

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Bitcoin has the longest and strongest blockchain, the largest network, with the most market capitalization and holders. It has withstood, managed and learned a lot from the challenge of becoming the largest and most successful cryptocurrency.

 

7. Workload Proof (PoW)

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When critics talk about the power consumption of Bitcoin, it seems that this is a flaw in the system, but it is actually a deliberate feature. The power usage cost, time cost, and calculated opportunity cost are designed to create a qualified node to participate in a network that maintains a complete record of large, public, digital books and transactions on each node.

 

8. A digital product that cannot be copied

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Not many people look at bitcoin like this, or discuss bitcoin like this, but a very novel, strange and useful feature of bitcoin is that it is a digital form that a person (or computer) can own and save, but they can't Copy it. You can copy a digital music file, an image, a string of text, but you can't copy a bitcoin.

 

9. Deflation

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The fact that Bitcoin cannot be copied means that the Federal Open Market Committee cannot easily decide to use special currency. This is why the intrinsic value of the dollar is actually zero because its liquidity is infinite, which is not only theoretically correct, but also in the monetary policy of the past 10 years, with the Federal Reserve (Fed) relaxing on a large scale. Money supply, this liquidity is accelerating to an imminent trend.

But bitcoin is not a currency black hole like the central bank's legal currency. Its intrinsic value is 1, not 0. It is a unique, unique digital product built on an open, public, peer-to-peer, decentralized network that no one can replicate.

 

10. The government cannot stop Bitcoin

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One of the most important reasons why Bitcoin does not return to zero is that the government cannot stop it. Other attempts to create private currencies in the United States have also been severely hit by the federal government, including raids on tried-and-coming companies, confiscation of their property, criminal charges against various financial crimes, and federal prosecution.

But Bitcoin survived and thrived because it was a decentralized software/hardware/human machine. This is a fatal blow to the idea that "bitcoin is zero." Bitcoin has no leader and no official headquarters.

As a high-value currency and bank, Bitcoin will survive for a long time.