What is the value support and growth logic of Bitcoin?

The main point of seeing such an article in the media today is that Bitcoin is hardly an asset like gold because it lacks a certain amount of value support.

The original text reads: “But there is a fundamental difference between Bitcoin and gold. Gold has its unique use value, that is, value support. But Bitcoin is largely supported by the trust of users, and prices are highly influenced by market expectations, so the currency price is not stable, especially during times of financial turmoil. ”

There is a key point to this statement, which the author does not explain clearly: “Gold has its unique use value”.

There are three main uses of gold in modern society, arranged in terms of the importance of these three uses from low to high: industrial use jewelry as a safe haven asset of central banks.

If only by industrial use and jewelry consumption, gold is in any case can not have the status and value of today, supporting the value of gold is fundamental or as a safe-haven asset of the central bank.

So why do central banks use gold as an important safe haven? In essence, gold in human history after 5000 years of precipitation of consensus and belief, rather than what “use value.”

In fact, in the 1970s, after U.S. President Richard Nixon artificially dissolved the anchor relationship between gold and the dollar, the greatest value of gold was to use: the anchor son of money issues no longer existed, and it was left with only the consensus and belief of all mankind.

When many traditional financial figures talk about gold, they will deliberately or unintentionally label it “use value”, which is weak. If you really want to say the use of value, the use of gold value is far less than its younger brother “silver”.

In nature, the storage ratio of gold and silver is about 1:15, but now the ratio of gold and silver is as high as 130:1. So how do you use silver with a higher value is so much lower?

Since consensus and faith can push gold to such a high position and price, they are also likely to push other things to a high level and price. Bitcoin is one of them.

Bitcoin has developed to this day, it does not need “use value”, in fact, does not have too much “use value”, due to technical constraints, disputes between various forces and other factors have led to Bitcoin’s technical development space has been very small, its future growth and development only need consensus and belief.

If you have to find a reason to ask why today’s Bitcoin is not popular? Or, in the opinion of others, that today’s Bitcoin price is not high enough? There is only one reason for this: today’s Bitcoin does not build up enough faith and consensus.

Apart from insiders, the vast majority of the people in the circle still regard this invisible thing as untrustworthy and incomprehensible, and therefore do not agree with its value and do not want to hold it.

This phenomenon is not an exception or one that is found in Bitcoin today, and the paper money we use every day has experienced such a dilemma.

In modern society, no one would say that paper money is worthless, but back to More than 100 years ago in China, the Chinese people living in the late Qing Dynasty when the Republic of China was eager to Yuan Datou, Longyang and other physical silver coins, and regarded paper money as meaningless.

Because the notes at that time had no use value or no endorsement.

This situation until the founding of New China, the steady development of the national economy, the state with strong means to paper money into credit, only let paper money gradually replace gold and silver as our common recognition of “money.”

So a piece of paper becomes valuable not because it has useful use, but because it is injected into credit and then a consensus arises.

I also believe that the future of Bitcoin will accumulate more and more credit and consensus, become the digital world’s veritable “gold.”

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