Recently US up-roaring Election Event, which has cause catalytic effect in increasing Bitcoin Market price. Current Bitcoin market price has exceeded over 15000USD. Regardless of the great debate between two president candidates, from the flow direction of market capital, current period is the nearest moment to Global Reserve Currency in Bitcoin development history.
On July 2019, sitting president Donald Trump questioned whether digital currencies such as Bitcoin have the real effect as real currency or not. He used to say that USD is the only real currencies, which is not only reliable but also trustworthy. “The most dominated currency in the world and it will keep this status forever.” However, the situation is going down the heel this year, incidents are continuously happening during the US Election this year, but Bitcoin’s price has been raised up to the highest in the history.
As a matter of fact, Bitcoin’s value has been coordinated to whole crypted currency market for a long period of time since the beginning development period of Digital Currency. Bitcoin’s price has increased dramatically in this round, it is not only having close connection with global financial situation, but also due to uprising Blockchain industries, bringing digital currencies such as Bitcoin market to prosperity.
Until now, there have been around 23 companies which hold 10.5 billion USD worth Bitcoins, it is about 3.74% of the total Bitcoin distribution amount, which include 15 public offering companies, 3 private companies and 5 ETF based companies. Many people think that Companies held great number of Bitcoins which was turning Bitcoin from no one cares situation to wide range adaption. It is a big step for digital currency turning into Global reserve currency.
From present situation, it is possible for digital currency to become Global Reserve Currency. As a medium of exchange, Bitcoin is the most valuable digital currency. Although it has not reached the value of USD, more and more companies such as Microsoft, Expedia and AT&T etc. These global corporations have accepted Bitcoin as an effect payment method. Besides, in order to fight for inflation or avoid capital control, Bitcoin has become the prior chosen community currency in Venezuela, Cuba, or even Greece, which is not only becoming daily exchange medium, but also becoming a method to store value.
However, the current Bitcoin standard deviation is 10 times higher than all G7 currencies. Current Bitcoin value fluctuation is unstable, therefore we cannot consider it as payment method or actual account unit. At the same time, Bitcoin network system M-vironments is not broad enough, which is causing its internet ecosystem unable to interact, therefore Bitcoin network system do not possess high value keeping trait. If we have to consider Bitcoin as Global reserve currencies, actual financial risk is really high.
This shows that if digital currency really wants to become global reserve currency, the real difficulty is to achieve higher fluctuation level and stabilized value keeping trait, it will require strong ecological application and rich interactive scenarios. In the current Blockchain industries, this kind of projects are rare, to achieve real free flow for digital currency, high value keeping trait global reserve currency, then we need to continuously increase digital currency’s offline flowing scenarios, extending broad financial character simultaneously.
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