Since the advent of cryptocurrency, there has been constant controversy and tenacious vitality. Traditional investors such as Buffett sneered at it, thinking it was "just an illusion"; while many people thought it was "the greatest invention of the 21st century." More cryptocurrency investors have made a lot of money in the field of cryptocurrency; and since the epidemic, the cryptocurrency represented by cloud mining Bitcoin has undergone many rounds of the bullish and bearish rise and fall, and finally still stood at the $50,000 mark and used the fund industry. In other words, it can be described as "successfully traversed through multiple rounds of bulls and bears." So, does cryptocurrency have investment value, and what is the investment value of cryptocurrency?
What is the investment value of cryptocurrency? Let's talk about its advantages first. Cryptocurrencies have many excellent characteristics: including thorough digitization, thorough Internetization, thorough privatization, high divisibility, security and simplicity based on mathematics and cryptography, decentralization, high transparency and scarcity, Very low cost, no borders, zero thresholds, fairness, unforgeability, non-tampering, anonymity, constancy of the issuance of some cryptocurrencies, etc.
In other words, the investment value of cryptocurrency and cloud mining bitcoin is reflected in the following advantages:
Anti-inflation, store of value. The strongest value storage investment attribute is the cryptocurrency representative-Bitcoin. After analyzing Bitcoin's 10-year bull and bear trend, one rule that must be drawn is: every round of cloud mining Bitcoin's bull market is closely related to the global financial crisis, economic crisis, and currency inflation that have led to the looting of people’s wealth. Great correlation.
With these excellent characteristics, the formation of high-scarcity and high-storage bitcoins, the global consensus has deepened, and more and more institutions participate in the market, the supply exceeds demand, and the cloud mining bitcoin market has gradually recognized the investment value of its cryptocurrency, and the price has become higher and higher.
Fast settlement and safe payment. The universal feature of cryptocurrency is: replacing third-party credit with algorithmic credit, which not only improves payment efficiency and reduces payment costs, but also greatly reduces the exchange rate risk and friction loss of currency exchange, and prevents the settlement process from passing. Credit risk caused by more. This is a huge market demand for global trade, cross-border settlement, and seeking a unified, efficient, and barrier-free settlement system. Although there is no cryptocurrency that can fully realize the settlement in one second and reach a global consensus, this must be an important direction for the development of cryptocurrency, and it is also the investment value of cryptocurrency.
Automatically execute and reduce breach of contract. The blockchain smart contract, the underlying technology of cryptocurrency, has the value of automatic execution and reduction of default. Traditional contracts are based on probability, and blockchain-based smart contract technology has certainty. Once put on the blockchain and cloud mining bitcoin, the smart contract will be executed strictly in accordance with the code. Smart contracts can use a decentralized network architecture to automatically execute contract back-end processes, including custody, maintenance, triggering, and settlement; they have a high degree of autonomy and cannot bribe middlemen or attack them. The certainty determines the Payment guarantee during the transaction. Its technology has a currency of use-value, and the investment value of the cryptocurrency has become apparent.
In addition, cryptocurrencies based on blockchain technology can also be used in multiple demand scenarios such as asset intelligence. These are the value dependencies that cryptocurrencies are optimistic about. Therefore, in many viewpoints, cloud mining bitcoin cost is used to determine value, and the consensus is used to achieve value. It is more appropriate and reliable to use demand to determine value.
Therefore, so far, the investment value of the cryptocurrency has also been expressed, and its return on investment far exceeds other assets. The total market value of cryptocurrencies has risen from USD 6.617 million on March 1, 2014, to USD 1.18 trillion as of today (July 22, 2021). The compound growth rate was 462.57%.
Some people have even calculated that the return on investment of major global assets in the past 10 years: cloud mining Bitcoin has ranked first in return on investment for 8 years in 10 years, leading the world, and the growth rate has crushed other assets.
Of course, not all cryptocurrencies have value. In the extremely valuable and potential investment field of cryptocurrency and cloud mining bitcoin, specific currencies and specific analysis are also needed. Only by establishing a value investment system that is logically self-consistent, risk-bearing, and has a wide margin of safety, can the investment value of cryptocurrency be possessed, and investors can also profit from investment in cryptocurrency and cloud mining bitcoin field.