Disclaimer: This article does not constitute any investment advice.Editor: Remember to follow!The foam of blockchain projects has constantly hit market confidence
Disclaimer: This article does not constitute any investment advice.
Editor: Remember to follow!
The foam of blockchain projects has constantly hit market confidence.
From November one9th to November two5th, the price of Bitcoin plummeted, with a weekly decline of nearly 35%, reaching its lowest point below the $4000 mark. Yang Wang, a researcher of IMI, and Wang Shuyu, a researcher of Hande Financial Technology Research Institute, jointly wrote that the reason for the sharp drop of Bitcoin was that the foam of blockchain projects kept hitting market confidence, the battle of computing power of BCH hard bifurcation caused market fluctuations, and the tightening of Cryptocurrency policy triggered market panic. Yang Wang indicated that although the application of blockchain involves many fields, its operation scale is small, which is mainly due to the limitations of physical performance of blockchain and the difficulty of solving the Impossible trinity problem. However, it is undeniable that blockchain has made outstanding achievements in both Distributed database and digital bill platform, and foam and value coexist in blockchain development in the future.
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From November one9th to November two5th, the price of Bitcoin plummeted, with a weekly decline of nearly 35%, reaching its lowest point below the $4000 mark. In fact, after Bitcoin surged above $two0000 in two0one7, it began to enter a rapidly fluctuating downward trend,As ofOn November two5th, the decline exceeded 80%.
Why did Bitcoin plummet this time? How should blockchain technology be viewed? Is it a foam collapse or a coexistence of values? What is the future of Cryptocurrency?
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Analysis of reasons for the sharp drop of Bitcoin: blockchain foam, BCH bifurcation, and stricter policies
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Source: Hande Financial Technology Research Institute
The foam of blockchain projects has constantly hit market confidence.At present, the infrastructure of blockchain is still not sound, and blockchain projects in the market are uneven and chaotic. Some projects are wrapped in the guise of a "public chain", actually using investors' money to speculate on currency. Or issuing so-called "virtual currencies" or "digital assets" to absorb funds, infringing on public rights and interests. The collapse of the foam of these projects has led to the loss of market confidence.
BCH hard forkedComputational powerThe war caused market volatility.oneoneone5BCHBCHABCBCH SVBCHBCHtwo
Figure two: Bitcoin Cash cash and price trend (in US dollars)
Data source: WIND, Hande Financial Technology Research Institute
The tightening of Cryptocurrency policy triggered market panic.oneoneone6ICOICOoneoneonetwo0two0one7onetwo
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Source: Public Information, Hande Financial Technology Research Institute
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Future development prospect of blockchain: coexistence of foam and value
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The main pain point is that the physical performance of the blockchain is limited, and the Impossible trinity problem is difficult to solve.6Visaone600
Of course, the limitations of physical performance do not mean that blockchain technology is helpless for physical scenarios. At present, blockchain has achieved good results in the following two applications:
First, Distributed database.This type of application scenario does not involve property rights, only utilizes the function of blockchain shared ledger as a decentralized database, which is convenient for solving the problem of information asymmetry between information recipients and improving the efficiency of information storage. Specific applications include the Securitization information disclosure platform based on blockchain technology developed by the Digital Currency Research Institute of the People's Bank of China.
Secondly, digital ticket platforms.Tokentwo0one8
In conclusion, after the "irrational prosperity" of Cryptocurrency and blockchain in the past few years, the overall sentiment of the current investment market has become calm. The Value judgment and risk assessment around the blockchain project are also in the process of gradual improvement. The future development of blockchain requires further breakthroughs in its physical performance; On the other hand, products designed based on blockchain technology require more grounded designs for the real economy and practical applications. Simply attracting traffic through the gimmick of "blockchain" is destined to create profits that cannot last long.
Source of this article: IMI Financial Observation
Original title: Bitcoin's decline and the future of blockchain
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