Bitcoin is not a World-Changing Dream Currency

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One of the representatives of virtual currency is bitcoin. Many books have been published and often featured in the media. Among them, there is a tendency to talk about the birth of the dream currency, and the virtual currency changes the world in a tone filled with dreams and hopes.

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But is that the case?

Although it certainly has advantages over conventional currencies, behind it is the reality of dream and hope that he did not want to know if possible. In this series, he would like to consider three times whether the image of dream currency Bitcoin that is generally disseminated is correct.

 

 Do many people around the world use Bitcoin?

The address is one of the significant differences between Bitcoin and conventional currencies. An address is like an account number for exchanging Bitcoin with the other party, and there are 16 million addresses in the world. A significant number of 16 million appear to be trading bitcoins using these addresses.

However, at the number of bitcoins held by each address, 60% of the total is 0.001BTC (BTC is a bitcoin currency unit, 0.001BTC ≈ 800 yen, the end of November) less is occupying. If you add an address of 0.1BTC (≒80,000 yen) or less to this, it will fill 90% of the world’s addresses. The fact that the addresses with a small balance occupy the majority suggests that there are many trial addresses by those interested in the mechanism of virtual currency. In other words, the number of people who use Bitcoin positively is not as large as it looks.

Goldman Sachs still seems to be skeptical of cryptocurrencies, even with the news of setting up a Bitcoin trading desk. In its economic outlook, the bank’s investment strategy group said the price of Bitcoin, which had fallen 45% in 2018, would fall further.

The cryptocurrency will continue to decline is not changing. It has been proved sooner than you expected, said Cryptocurrencies would fall further in the future, given that they do not perform any of the three functions of traditional currencies: the medium of exchange, the measure of value, or the preservation of value.  The bitcoin supreme is one of the secure bitcoin trading sites which is like by most of bitcoin traders.

The blockchain technology that supports it, has been welcomed as a destroyer of the international financial system because it theoretically improves the efficiency of databases, speeds up transactions, and enhances operational transparency. But, at least for now, Goldman Sachs believes cryptocurrencies will not have the same impact as other asset classes.

You don’t think the decline in cryptocurrencies will hurt financial assets’ performance in a broader sense. As of mid-2018, cryptocurrencies represented only 0.3% of global GDP. It’s not there. The report says. Cryptocurrencies are getting more attention than ever on traditional and social media

Some of these Bit coin’s privacy features are welcomed by major financial institutions that value the confidentiality of their transactions, Buck said. There is a possibility that privacy implementation will mature Bitcoin as digital cash and attract big money.

However, there are various trade-offs in these features, and it is unknown whether they will be implemented smoothly and quickly with the agreement of the Bitcoin developer. As in the bitcoin world, optimism is forbidden, as the developer community has been cracked by block size increase. While there is a wide range of privacy technologies, the question is whether these features will be implemented in Bitcoin’s underlying layers without conflict of thought.

There is a concern that a bitcoin will be created to strengthen the confidentiality of transactions, and the anti-inflation performance of bitcoin will be destroyed.

Adam, who develops join market, a virtual currency wallet with a coin join function, said, Blockchain is a public authentication mechanism by its nature, so it is dangerous to obscure important information by cryptography.

Recently there were inflation bugs in Monero, Bitcoin, etc. So thinks that technology that does not record transactions directly on the Blockchain is preferable in terms of privacy and scalability. Lightning Network is a clear example of that.

So bitcoin grow to high level in small interval of time and now it is first choice of trader for making money.

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