Bitcoin has been very hot in recent years, but the price has fluctuated. For investors, it is a question of whether the price fluctuation of Bitcoin is rational. However, some commentators believe that with the launch of Bitcoin futures trading, investors will determine the rational price of Bitcoin based on the market expectations of blockchain technology and the role of Bitcoin in it.
According to reports, in the development of e-commerce, for example, everyone was afraid to provide credit card information on the Internet, and now the booming e-commerce business has caused a huge threat to physical retail. When investors were evaluating Amazon's free cash flow 20 years ago, they were not expected to have this factor. In the same way, when evaluating the value of Bitcoin, you should not "pretend" to know its future possibilities.
Whether it is optimistic or bad Bitcoin investors, the identification of blockchain technology is an epoch-making key technology, but few people have noticed the link between blockchain technology and cryptocurrency. In fact, as blockchain becomes the dominant technology, investors holding encrypted electronic money will benefit.
The biggest difference between encrypted electronic money and traditional platforms lies in its "decentralized" nature. In the case of the Uber service, the company will take a portion of the payment amount as compensation for each successful match between the driver and the passenger. So what if Uber is going to go to the decentralized trading today? It will directly help passengers and drivers, without any additional transaction costs.
Suppose that this version of the car service is called UberB, and in this new system, both the driver and the passenger must hold UberB tokens to trade, then the company's profit model depends on the role of the token in it. . As the UberB service attracts more and more people and the tokens are limited, the value of the token will rise and the holder will profit.
In other words, investors who encrypt electronic money gamble that blockchain technology will have more economic potential than current business methods, and bet on its size and supply. Going back to Bitcoin's discussion, assuming that new technology emerges and needs to hold Bitcoin to use it, the value of Bitcoin will rise.
The advantage of Bitcoin is that it is the earliest developed and put into use blockchain currency, which will likely become a superior asset in the new economic ecology, as a basis for redeeming other functional tokens, such as the "bitcoin standard" in the future. "Like the past gold standard."
Of course, Bitcoin's prospects still have many variables, the value of which depends on whether blockchain technology will become mainstream, and whether Bitcoin can continue to maintain the position of the dominant blockchain currency. In the future, if other transaction costs are lower, or the price is tied to the US dollar or a basket of currencies, or even encrypted electronic money issued by the government, then Bitcoin may be replaced.
Before the situation became clear, Bitcoin prices still had high volatility, but with the advent of Bitcoin futures commodities, the trading market will become more and more robust. In the past, there was a high technical threshold for investing in Bitcoin. Now, the market will start to reflect the opinions of a wider range of investors. It is expected that the future price of Bitcoin will better reflect its fundamental value.
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