Wednesday, November 8, 2017

Bitcoin is independent but not independent

Recently, the price of Bitcoin is extremely fragile. Its value touched ten thousand USD momentarily. The rumor of Segwit2 hard fork may influence the rising of its price. But it is uncertain this hard fork will be beneficial for miners and users.

Personal finance such as Bitcoin or other solutions for saving money without interventions of the government will benefit much to citizens in some countries. They always feel fearful of the government which develops restriction scheme of bank money. As well, the risk of hyper-inflation makes them anxious to protect their estate. Bitcoin is at least invulnerable to the interference of any government because of the absence of the central controller. For whom distrusting domestic currency, Bitcoin is equal to an omnipotent estate.

However, governments can intervene Bitcoin's value in another way. Some month ago, the Chinese government began to prohibit the way of gathering money using cryptocurrency. The decision smashed the price of Bitcoin immediately. Although Chinese were dominant as Bitcoin dealer until some years ago, it has been shifted to Japnese. It is because the Chinese government restricted the deal of cryptocurrency. Japan has now established relatively tolerant regulation of Bitcoin dealing.

Mentioned above, even if Bitcoin is an uncentralized scheme, its value is influenced by the situations conducted by each nation. It is an issue of the market. We cannot become completely independent of our country because we are human.

I prospect Bitcoin will survive for years. But it will not solve many problems in our society so easily.

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