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Can bitcoin be invested

Bitcoin inflation

The transfer of CBDC between commercial banks, between commercial banks and individual and corporate users, and between Bitcoin inflationindividual and corporate users is essentially a Token transaction within the blockchain. Figure 13 is the transfer process of CBDC (this is the picture on page 7 of Yao Qian (201). After Commercial Bank A sends a CBDC transfer request to the Central Bank, the Central Bank voids the source currency and generates the owner's destination for Commercial Bank B according to the transferred amount. Currency. If there is a balance after the transfer, you need to generate a destination currency whose owner is commercial bank A. This transfer process is similar to the UTXO (unspenttransaction output) model.

However, in 2017, under the dominance of Core, Bitcoin chose the small main link line of non-market evolution through Segregated Witness and Lightning Network. A few people who firmly oppose this route, including me, have chosen the path of expansion, and this is how Bitcoin Cash (BCH) was born. The BCH community does not oppose the Lightning Network, but believes that the development and use of the main chain should be given priority when the main chain space is sufficient.

But the actual situation is more complicated. Because the difficulty of mining, which is closely related to mining revenue, is not static, the difficulty of mining will change with the change of the whole network, and the adjustment period is about 12 days. As the difficulty of mining increases, mining revenue will drop sharply. When the mining difficulty increases by 3%, the investor's 10TH/s cloud computing power leased by Bitdeer will return to zero within 120 days.

What does the Web3 startup project create? There are two general directions, one is to develop new or enhance the existing Web3 technology stack; the other is to develop Web3 applications. I call on entrepreneurs, especially Web3 entrepreneurs, to pay more attention to applications, because only applications are the vehicle to realize the Web3 vision. In the past few years, thousands of platform public chains or second-tier network projects have emerged all over the world, and a considerable part of them originated. This certainly reflects that the basic Web3 protocol is not satisfactory, there are many areas for improvement, and there is a lot of room for innovation. However, according to the laws of network effects, there are not many basic protocols that can survive and carry a large number of applications. Excessive and dazzling concepts have overdrawn social resources and are increasingly reduced to a game of money-trapping in the cloak of high-tech. At the same time, after Bitcoin, there is no Web3 application that can compete with Web2 applications, and more than 99% of Internet users do not perceive the existence of Web3. Now with Polkadot/Substrate, it is technically possible to develop Web0 applications that have minimized trust, no need for approval, and anti-censorship, and user experience and usage costs can compete with Web0. The golden age of Web3 application entrepreneurship is kicking off.

LedgerX began offering bitcoin derivatives in October 2017, two months before the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) launched bitcoin futures contracts. Currently, the company offers next-day swaps (essentially a one-day futures contract settled in physical bitcoin) and options (allowing traders to buy or sell at a specified price at a certain point in the future) Rights to assets). Now, LedgerX hopes to launch an ETH version of these derivatives.

The Bitcoin derivatives exchange Bitmex was the first such exchange established in 2014, when the emerging Bitcoin market had a derivatives platform. Bitmex positioned itself as the leader of the Bitcoin futures market, once settled billions of dBitcoin inflationollars in contracts every day at peak trading volume, until OKex, Huobi and Binance began to eat into their market share.

On April 21st, Wu Jihan, Chairman and CEO of Bitmain, said: (On the occasion of the halving) Bitcoin will have some rise, but everyone should not have too optimistic expectations. Don't expect to start a bull market and break through the previous high. Both believers and investors should look at the industry from a long-term perspective and manage risks.