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Blockchain has become a pastry, but cryptocurrency has become a drowned chicken

Time : 06/12/2021 Author : wm6hzk Click : + -
        Speaking of what is the hottest this year so far, I have to say blockchain. In the first half of this year, blockchain almost covered all major platforms and even the circle of friends. In other words, "blockchain" has become a hot word that every Internet practitioner must understand. Cryptocurrency is also a hot topic in the Internet circle and blockchain. In the Internet circle, well-known celebrities will have the views of relevant professionals on topics related to blockchain and cryptocurrency, from money speculation to chain speculation, from issuing money to cutting leeks to establishing a "three o'clock blockchain" group. In such a market environment, the relationship between blockchain and cryptocurrency is undergoing subtle changes in the Internet circle.
        As we all know, the origin of blockchain technology can be traced back to cryptocurrency, which was first proposed by Nakamoto in 2008. Blockchain is valued by the market because of its cryptocurrency. In 2017, after the cryptocurrency fire, the blockchain technology behind it became known to all. The fate trajectory has changed greatly. Blockchain technology has become the technical basis for the advanced upgrading of the domestic Internet industry. At the same time, the market value of blockchain has been gradually realized after continuous digging. After polishing and continuous precipitation, the prospect of blockchain technology is more and more optimistic. Cryptocurrency has become a weight for coin speculators to have a crazy party. They use funds to set up a mining team. After obtaining a large amount of cryptocurrency in the mining pool, they raise the market value of cryptocurrency by speculation. The maximum market value of a bitcoin reaches $20000.
        Then they make huge profits by doing nothing. The regulatory problems in the cryptocurrency field continue to appear, and chicken feathers and cut leek roots are everywhere. In the face of such market chaos, Liao Wang, the founder of the international monetary freedom organization and the atomic chain, pointed out the reasons for the current market problems. First, cryptocurrency wastes a lot of power and hardware resources in the mining mechanism. The acquisition of cryptocurrency requires special technical means, that is, the mining mechanism. However, the operation of the mining mechanism requires ultra-high configured hardware equipment and a continuous flow of power resources to provide 24-hour power for multiple operating equipment. However, the mining mechanism with high investment and high energy consumption may not be able to obtain corresponding returns for miners.
        Second, in terms of the distribution of computing power of mining pools, the total computing power of oligopoly mining pools has exceeded 50%. Cryptocurrency mining pools are controlled on most platforms, which not only violates the decentralized concept of blockchain technology, but also easily causes the risk of information leakage. In addition, the rising market value of cryptocurrencies is very likely to cause deflation. The holders of cryptocurrencies rely too much on the appreciation of their cryptocurrencies to replace their due work and labor. This kind of behavior of sitting idle will cause the decline of social productivity, and even lead to the recurrence of the market financial crisis. A variety of factors make cryptocurrency not only frustrated in the domestic market, but also its market value in the international market is declining and the trend is significantly accelerated.
        On the afternoon of May 25th, 2018, the market value of bitcoin evaporated by $5.5 billion in just over an hour. At the same time, the market value of Ethereum fell by $2billion, and the market value of Wright coin fell by $250million &hellip& hellip; "My friend who works at Goldman Sachs said that Wall Street is wantonly shorting cryptocurrencies," Liao Wang said. The entry of cryptocurrency dates back to May 18, 2010. Bitcoin holder laszlohanyecz posted on bitcoin forum bitcointalk that he could buy two large pizzas with 10000 bitcoins and complete the transaction on May 22.
        This is also the first time that bitcoin has realized its transaction value in the money market. At the same time, this transaction also makes the market value of cryptocurrencies such as bitcoin recognized by the public. However, with the increasing number of entrants, the regulatory chaos caused by cryptocurrency has made it cold in the market, while blockchain technology has become a hot topic in the Internet circle. In this regard, money holders in the market have such a view that if you don't buy money, how can you say that you know money? If you don't know money, you can't evaluate cryptocurrency. The almost crazy values in the cryptocurrency market made many coin holders marvel at laszlohanyecz's behavior of buying two large pizzas with 10000 bitcoins, calling it too extravagant to buy two pizzas with hundreds of millions of dollars.
        For Liao Wang, he has hundreds of millions of dollars of bitcoin, Wright coin, Ethereum and other currencies that are currently hot in the market. He can be said to be the richest man in Dubai blockchain circle and has a very high voice in cryptocurrency. However, he believes that the current cryptocurrency is not perfect. Cryptocurrencies are losing their original intention and gradually violating the market value that blockchain technology should have. The first is decentralized value. The application of blockchain technology solves the competition pattern of oligopoly in the current market. In the non blockchain market, Internet giants in various industries will integrate market resources for aggressive expansion in order to expand the market.
        The advantages of industry giants with sufficient resources in market competition make them oligarchs, and the Matthew effect hinders the benign development of the market. In the blockchain market, enterprises and users are equal. Enterprises can provide users with corresponding market data according to market needs, while users can obtain corresponding information in the blockchain according to their own needs. The second is the value of market regulation. In the process of expansion, with the continuous increase of the industrial chain, the market supervision problems will become more and more obvious. Take the takeout distribution industry as an example. At present, the two oligarchs in the takeout industry are hungry, and it is an inevitable trend to compete against meituan. However, when both sides carry out market expansion, they also have the problem of insufficient supervision and unable to restrict the delivery staff.
        Finally, the value of information security. The more market user data a centralized platform has, the higher the market value it generates, and the more likely it is to have information leakage problems such as user information theft and reselling. Using the encryption characteristics of blockchain can improve the information security of users on blockchain. Blockchain technology developers are steadily improving, and their technical value is also being recognized by various Internet industries; As a carrier, cryptocurrency is eager for success, and the value of the holder is distorted, causing the value of cryptocurrency to deviate from the normal track of the blockchain. From the perspective of origin, the origin of bitcoin is blockchain technology. The emergence of cryptocurrency and blockchain technology such as bitcoin provides convenient and safe trading space for consumers and promotes the healthy and rapid development of the consumer market. However, the current development trend of cryptocurrency violates the original intention of technology developers.
        Liao Wang said in the world cryptocurrency forum that "bitcoin may fall to $1 after it rises to $1 million." In his view, bitcoin has all the advantages of gold and US dollars, and it is better than gold for segmentation and transfer transactions. Because it is easier to use than gold and extremely rare, the total number is limited to 2100. With a world population of 7.3 billion, it will be pursued by panic and exceed us $20000, US $100000, or even US $1million. But after all, bitcoin is a technology 10 years ago. In the future, there will certainly be technologies that will surpass it to create a better cryptocurrency. Moreover, the computing power of bitcoin is highly concentrated, with individual mining pools accounting for more than 50% of the computing power, and it has the ability to attack the whole network.
        These factors lead to bitcoin being eliminated by the market in the era of continuous technological change of digital currency because it cannot withstand the impact of the market. In terms of blockchain and bitcoin, Ma Yun also said that blockchain is not a foam, but bitcoin may be, and in the next 10 years, blockchain will become one of the technical challenges facing mankind. At present, cryptocurrency holders such as bitcoin only want to make money in the market and obtain more benefits through currency speculation, which will only destroy the blockchain technology behind it. But for the market, technology is innocent, and cryptocurrency, as a product of technology, should also be innocent. In order to obtain greater development space for cryptocurrencies in the future, in addition to effective guidance and supervision of currency holders, it is still necessary to return to the essence of money, that is, to realize the value of money in the process of commodity exchange.
        At the same time, cryptocurrency, as the backer of blockchain technology, needs to return to the essence of blockchain technology after meeting the circulation value of money, that is, to achieve absolute fairness, transparency and information tamperability in the cryptocurrency circulation market, so as to protect the fundamental interests of all blockchain "chain people". In addition, the development of cryptocurrency should be upgraded according to the market demand for money. Take traditional currency as an example. With the development of money from shellfish to rare metals to today's paper money, the shape of money will continue to change with market demand, and the rapid development of Internet technology will eventually promote the arrival of the cashless era. At that time, digital currency will become an indispensable part of our various consumption scenarios. Therefore, before the advent of the cashless era, cryptocurrency should continue to optimize its exchange rate conversion in the circulation process according to market demand.
        In a word, cryptocurrency, as the carrier of blockchain, needs to have a deeper understanding of market demand, continuously optimize its liquidity through blockchain, and provide safe, convenient and fast payment methods for cryptocurrency audiences. Only in this way, cryptocurrency can truly become a negotiable digital currency before the advent of the cashless era.
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