In the past two years, as the global economy has been hit by the epidemic in turn, many countries have chosen loose monetary policies to stimulate the economy, which is commonly known as "water release", which has led to the rising trend of cryptocurrencies led by Bitcoin (BTC mining), even beyond The 2017 ICO boom. The myth of Bitcoin's rich wealth has brought a large number of investors into the market, trying to make a fortune in this wave of a bull market. However, without conducting an analysis of the price trend of cryptocurrency, and without a clear understanding of the risks involved, blindly following the trend of the investment may lead to capital loss. Let’s talk about the analysis of cloud mining prices trends today.
Cloud mining prices - Why is BTC mining still the most valuable cryptocurrency?
Now in terms of market value, Bitcoin is still the number one, that is, the most valuable cryptocurrency. This is due to some inherent characteristics of Bitcoin:
1. Quantity limit
The final number of bitcoins in circulation is limited to 21 million. In addition, every four years, the number of bitcoins mined and rewarded will be halved. Therefore, every time Bitcoin halves the market, the market will generally believe that Bitcoin will at least create a record high. Under this general consensus, Bitcoin has become more and more scarce as time goes by, so its value is constantly increasing.
2. A secure network
Cloud Mining Reviews - As the leader of the cryptocurrency, Bitcoin is the most secure blockchain in all markets due to its leading position and a large number of miners. Because of the huge market value of Bitcoin, 51% of cyber attacks have increased the difficulty. Of miners work in the Bitcoin (BTC mining) network to maintain the security of the Bitcoin network, which reduces the harm caused by malicious BTC mining miners.
3. As the base currency
Cloud Mining Reviews - Although most investors use USD tokens as the base currency when buying or trading cryptocurrencies, the vast majority of cryptocurrency investors are more willing to consider cloud mining prices trend analysis and increase their positions in BTC mining. Therefore, there has been a saying in the market before that “Bitcoin positions account for half of the investors’ positions." At the same time, when major events occur, a large number of investors will still convert their positions into Bitcoin. If Bitcoin, the leader, can't hold up this market, what qualifications do other cryptocurrencies have to outperform the market?
Therefore, the price of BTC mining has a great influence on the rest of the cryptocurrency market, and many people use its performance as a market benchmark.
Cloud mining prices: scarcity
Like other financial markets, the crypto market is mainly driven by the relationship between supply and demand. The Bitcoin case proves this. Therefore, most of the cryptocurrencies in the world will limit their total number, and then the circulation in the world will continue to decrease through various methods, reaching a situation where supply is less than demand. Under this mechanism, cloud mining prices will generally be given a certain value.
On the other hand, due to the increasing popularity of cryptocurrencies and their slow and steady adoption, demand continues to increase. Some experts even predict that cloud mining prices trend analysis, Bitcoin (BTC mining) will follow this wave of the bull market, all the way to the 100,000 U.S. dollar mark.
Cloud mining prices: usage and adoption
Whether cloud mining prices can be used as a store of value and whether it can be used as a currency on a large scale are also important influencing factors. For example, Dogecoin, as a hot spot in the cryptocurrency market in recent days, can be said to be in the limelight. Its total number is unlimited, the transfer speed is extremely fast, and the meme feature is its huge hot spot effect, the most important of which is the consensus number of Dogecoin itself is second only to the consensus number of Bitcoin (BTC mining). Coupled with the operation of the world's richest man Musk, Dogecoin is widely known and accepted by various companies.