What is the nature of Bitcoin's value?

When the price of Bitcoin was the highest, it reached 140,000 RMB. Even now, the distance from the highest point has fallen by about 76%, and it is still worth 53,000. Therefore, many people have never understood why Bitcoin is so valuable, let alone why people in the circle often say "one currency, one villa". How can one bitcoin buy a villa?

If you don’t understand the “value backing” of Bitcoin, then you will never be able to hold Bitcoin for a long time. Even if you buy some Bitcoin, it’s just a speculative passer-by, getting in and out of the car, every day with fear. I heard about Bitcoin in 2012, held Bitcoin in 2014, and then used Bitcoin to participate in ICO in 2017 in exchange for various digital currencies. I cannot understand the value of Bitcoin!

I am a slow-hot investor, and relatively sane. It wasn't until Bitcoin rose to 30,000 yuan to see the essence of Bitcoin's value. But since then, I have become a firm digital currency "value" investor, creator and guardian of "digital wealth", and I have never been so confident on the road again, leading to the future era of digital wealth.

P.S. This is a secret that the big figures in the currency circle will never share with you. If you understand and act, your value can be increased by 10 times.

Before we try to understand the value backing of Bitcoin, please think about a question:

What is the nature of value?

Take diamonds as an example, the one we hear most often is: diamonds are forever, and a diamond is always passed on.

So what is the essence of the value of a diamond?

We only know that it is the hardest substance in the world. But besides making drills, what practical uses are there?

The wise Jew told a story that convinced most women in the world. From then on, the young boys had to devote all they had to buying a hard stone that represented the longevity for the beloved woman, and put it on the woman's ring finger at a moment witnessed by relatives and friends.

So be sure to ask what is the value of diamonds? That might be just a widely accepted scam.

But we all believed it.

Similarly, what is the nature of the value of art?

It's just a painting, ordinary paper, ordinary ink, ordinary people use ordinary painting methods. Why can it be sold for millions of dollars?

Just because it has a high appreciation value and scarcity. Therefore, after the artist's death, there is more room for appreciation of his works.

But is the appreciation value really worth tens of millions or even hundreds of millions of dollars?

Isn't it the same to appreciate the reproduction on the wall?

The art of high imitation is not much worse than the original painting in terms of appreciation.

So, if it wasn't for a huge art collection group, if it wasn't for the belief that someone would be willing to collect it at a higher price in the future, guess, would there be so many buyers willing to pay such a high price?

If you live in a working-class social environment, then you do not have to consume high-premium luxury goods. A canvas bag of 10 yuan is enough to meet your needs;

If you don’t play games, you won’t understand the logic of spending money on virtual items and equipment, and you can’t even imagine someone specializing in this profession, selling the equipment and items you spend time playing to other players to make profits;

We also chased stars when we were children, but we just bought a poster to post on the wall beside the bed, and today’s post-90s’ way of chasing stars seems to surprise the uncles born in the 1980s, not to mention the grandfathers born in the 70s and 60s. ；

Live rewards, this is already a logic that the older generation can’t understand anyway. Even some male anchors can earn 300,000 a month by talking to the mobile phone camera and chatting. I really don’t know the little girls who reward him. What “value” did they get when they paid for it?

All IP images such as Mickey Mouse Donald Duck, Hello Kitty, Rogue Rabbit, etc., printed on a T-shirt can increase the value of a T-shirt by ten or even a hundred times. It is not because the T-shirt printed with Mickey Mouse is more comfortable and warmer. , Just because everyone knows this mouse, everyone likes this mouse, and we need everyone to like us wearing Mickey Mouse, just like they like Mickey Mouse;

After answering all the questions, we should be able to realize that if we don't assign value to a thing, nothing has an inherent "value". The most important air and water for our lives are free, and the food that fills us is also extremely cheap. Strictly speaking, most of the amount we consume on our monthly bills is not necessary for survival. But it is necessary for life. The "premiums" attached to all kinds of goods and services are "unreal", just "group consensus" that exists in our imagination.

This is my conclusion:

The essence of value is consensus!

Although there are only eight characters, I have spent nearly forty years looking for it. I am still very fortunate to be able to understand the essence of value before the age of forty. On the basis of this consensus, participating in the creation of digital wealth in the digital currency era will not be so tangled and hesitant. The market value of the digital currency represented by Bitcoin will eventually surpass that of gold, because this consensus group is growing, and the wealth of this group is also growing. Within 10 years, you will definitely see Bitcoin or a certain digital currency The market value surpassed gold, that is, on the day when 1Coin=500,000 U.S. dollars; at that time, one Bitcoin or XX Coin was enough to buy a beautiful villa in a beautiful suburb in a developed country.

Many readers may think that the essence of currency is not consensus, but the coercive force of the government and guns. In fact, this knowledge is incomplete. There are many methods and reasons for the generation of consensus, and government coercion is just one way to generate consensus. In our society, there are many other ways to generate consensus:

Authoritative endorsements, corporate credit, historical heritage, science, religious beliefs... all these can generate consensus. Just like the "indulgences" sold by the Catholic Church, if you do not belong to that sect (consensus group), you will definitely not spend money to buy indulgences. The reason why gold is still valuable is not because of the government-mandated gold standard system, but the historical and cultural traditions left in our minds. When we get married, we still like to wear gold and silver. When our children are full moon, relatives and friends Friends will still send gold jewelry to represent good wishes. Policies can be changed overnight, but historical and cultural traditions cannot be changed overnight. Therefore, the value of gold and the value of Bitcoin are essentially consensus; one consensus is historical inheritance, and perhaps the consensus group is getting smaller and smaller; the other consensus is digital belief, and it seems that this group is getting more and more Big.

We cannot understand the value of something,

Just because we do not belong to the consensus group of that thing!

Brand is consensus, culture is consensus, trend is consensus, diamond is consensus, currency is consensus, politics is consensus, religion is consensus, law is consensus, folklore is consensus, credit is consensus... Broadly speaking, the operation of human economy and society It is based on various consensuses. The vision put forward by the company is essentially that the founder, employees, shareholders and users reach a broad consensus. So I am willing to call the so-called "cryptoeconomics" in Silicon Valley "consensus economics" in English: Consensus.

Consensus is valuable, and creating value is to create consensus! The main significance of the government's bailout is to activate the confidence of private capital. Confidence is a bullish consensus. When the bullish capital exceeds the bearish capital, the market index will rise. The core of government regulation is consensus guidance.

So, back to the question itself, where is the value of Bitcoin?

Although Bitcoin only simulates a gold-standard virtual world in the form of algorithms, it has revealed various ugliness under the credit currency system. Let ordinary people on the edge of the ridge also see the financial world behind the magic stage. It is like looking at a monster mirror. What monsters you see depends on how many monsters there are in the world, not the mirror itself.

Bitcoin will gradually educate every ordinary person from the most basic theory in the next ten years, how do the current paper money come from, how money laundering is done, how the power becomes an antique of calligraphy and painting, the sky-high price and high housing price of calligraphy and painting antiques are how did it get here?

Why is the gap between the rich and the poor widening? Why do you work so hard every day and the money you save turns into waste paper and never keeps up with the rise in housing prices?

And those who run slower work 12 hours a day, and in the end there is no place to stand in the villages in the outer suburbs of the city?

Why do more and more business models in this world use money instead of making money, and where does the burned money come from? Why do some people prefer to run away and cheat banks for loans, and why are banks the most profitable institution in China, no matter how bad they are?

Why can the printing of banknotes be unscrupulous, and how do people in the center of power put money from their left pocket to their right pocket, and then go to the central bank to cry for poverty?

Why do corrupt officials prefer to keep the money for the entire vehicle in the villa rather than in the bank? Why do all financial innovation routines end up hoarding land?

As long as you want to understand this, you can understand why Bitcoin has risen all the way and will rise again with a high probability in the foreseeable future and make most people doubt life again.