The data shows that the price of Bitcoin today has risen to $7,308,（data from citicoins.Com） which is a big improvement over the previous downturn. Other cryptocurrencies also have a small price increase. With the end of the World Cup, the cryptocurrency has ushered in a new round of improvement. So our topic has returned to the cryptocurrency.
There are good news and bad news about the cryptocurrency during the World Cup. Allow cryptocurrencies to advertise on Facebook, but it still prohibits the promotion of ICO ads. This news played a certain role in the promotion of cryptocurrency. But shortly afterwards, the Indian Finance Minister imposed a ban on his country's cryptocurrency. This is undoubtedly a big blow to the people involved in cryptocurrency exchanges and cryptocurrency transactions in India. The relevant person submitted the petition, but the Indian government still insisted on the original decision. The proportion of the Indian market is not negligible in cryptocurrency.
Similarly, China still has a cold attitude towards cryptocurrencies, and currently does not see any loosening policy on cryptocurrencies in China.
It has been pointed out that the reason why cryptocurrency is not accepted is because of the instability of its price. Indeed, in the price changes of the past two months, we have deeply realized the instability of its prices. However, the number of investors in the market has not decreased compared with the past, and has led to a lot of discussion.
The original intention of Bitcoin was to use it instead of legal tender, but because of its unstable price and the credit problem under the concept of “decentralization”, it is currently only used in some areas, and more is to treat Bitcoin as An investment product, of course, is also used as a legal currency. There is such an attempt. After Bitcoin, there have been a lot of altcoins, which are used in the same way, but in different fields. But every cryptocurrency is a good vision when it comes to ICO, but it has since evolved into an investment product. And in part of the ICO process, it is full of fraud.
We know that investment products are risky and price Unstable. The cryptocurrency conforms to this feature, so the current identity of the cryptocurrency is an investment product. But what happens once the price of the cryptocurrency stabilizes?
The price is stable, which has some potential for legal currency, but so many cryptocurrencies, which country will use? Each country has its own legal currency.
Once the price is stable, it is the loss of investment value:
For example, 1btc to usd: 10,000 USD, the exchange rate is constant, and the price of the tron will remain unchanged. There will be no such thing as "tron price chart usd". Believe me, no investor will buy bitcoin for $10,000 and sell it for $10,000.
Once the price is stable, there is no difference in the cryptocurrency except for the channels and fields used. As a result, a large number of cryptocurrencies will be eliminated.
When it comes to using the legal currency, it will not be dominant. For example, the reason why China does not accept cryptocurrency now is probably to consolidate the international status of its legal currency, RMB.
The price is stable, then Bitcoin can no longer be called cryptocurrency, it can only belong to the virtual currency that can be used for redemption, and all the advantages accumulated before will no longer exist.
Therefore, cryptocurrency can never replace fiat money. Investment products are the best identities of cryptocurrencies,
and there is a contradiction between the survival of cryptocurrencies and fiat currencies. Of course, if you get the help and support of the government, there is hope that it will become legal tender. But which country will give up its currency?
Once the cryptocurrency loses its investment function, the cryptocurrency will gradually be eliminated. so the stability of the price will make it disappear.
