Everyone knows that gold is valuable, but primitive people 10,000 years ago may not have thought of gold’s value. First of all, gold cannot be eaten. Compared with stones, it is soft and cannot be used. Apart from being beautiful, it really has no value. What's the use? Similarly, when faced with the value of Bitcoin, most people in modern times have inadvertently taken the position of primitive people. It is so virtual that not many people think it has real value, and naturally they cannot see Bitcoin. the value of.

Before explaining the value of Bitcoin, let’s first talk about why gold has value. In the era of barter, many things were used as currency, such as shells, wheat, and later iron coins, gold and silver. After various exchanges and comparisons, the world has reached a consensus that using gold As currency it has become a universal value. Why gold? First of all, gold is easy to divide and has good stability, unlike copper and iron that are prone to property changes. At the same time, it has the most important characteristics of currency, rarity and decentralization. Therefore, when the world economy is not very large, gold is simply the most ideal option as a currency. In history, there are many countries that made their fortunes by mining gold mines, such as Spain and Portugal. As the countries that first started the Age of Discovery, they were quite prosperous in that era. It can also be said that in the old days, the amount of gold mining itself also checked and balanced the development of a country. Let’s talk about Bitcoin again. We will find that it has many of the same characteristics as gold. Next, a little analysis:

1. Divisibility. The amount of a transaction can be 1 bitcoin, 0.1 bitcoin, or even smaller, which is similar to gold.

2. Stability. For gold, stability means that it will not disappear or increase out of thin air. For Bitcoin, as long as you keep your wallet and password safe, no one can steal it from you. After all, it is quite difficult to obtain the final password through trial and error with a 64-bit password given the computing power of current computers. Therefore, Bitcoin has relatively good stability, and at the same time, it has security that gold does not have.

3. Scarcity: The total amount of Bitcoin was limited to 21 million at the beginning of its design. As time goes by, the output of Bitcoin will become lower and lower. Eventually, just like gold, after the output reaches a certain upper limit, it will no longer be produced, thus avoiding hyperinflation caused by the government's excessive issuance of paper money. In fact, hyperinflation ultimately damages the interests of ordinary people.

4. Decentralization: Bitcoin transactions are like a public ledger that exists in the cyber world. Everyone can view and download it, and everyone has an account book. In other words, it is more like a software that is updated at any time. Our account book is updated at any time, and no government can control this process. It is independent of the world monetary system, but is closely related to this system, just like gold.

Some people may say that Bitcoin is different from gold. Other air coins steal the code of Bitcoin to make a coin, which will have the same advantages as Bitcoin. Yes, but think about it, silver is not worse than gold. Why does everyone always agree that the value of gold is higher than silver? The final analysis of this matter is that human consensus has been formed, and the cost of destroying this consensus is very high, just like when the United States opened the Breton The Forest Conference linked the U.S. dollar to gold, but it couldn’t be tolerated later. After all, what it was fighting against was the gold standard consensus formed by mankind for thousands of years. Now, Bitcoin is also walking on this road, and the future The new humanity will also be beyond our understanding. Okay, now that the bricks are thrown, it’s time for the jade to come out.