Bitcoin hit a record high this time

Why didn't Bitcoin hit a record high this time, but did not explode in volume like the previous one? Investment veteran: because everyone started trading NFT!

We want to let you know: This time Bitcoin hit a new high, unlike the previous scene of a huge decline in transactions, the author believes that this is due to the rise of NFT. However, if you want to invest, the author suggests that priority should be given to the development of more robust cryptocurrencies.

Bitcoin surged 10% this week, reaching its highest point to $67,000, which is also the third cycle in Bitcoin’s history where the highest point exceeded $60,000; the first time it appeared in April this year, and it ushered in 5 consecutive times. The monthly downturn showed that when Bitcoin exceeded US$50,000, big players (giant whales) sold large amounts of Bitcoin; at the end of October, Bitcoin once again exceeded US$60,000, and Binance’s highest point reached US$67,000. As expected, There has been another phenomenon of giant whales selling bitcoins, and the bitcoin stocks of major exchanges have also declined. However, bitcoin did not fall sharply this time. Instead, it remained at around 60,000 US dollars. The 10% rise exceeded 65,000 US dollars, which shows that all the bitcoins sold in this cycle have been picked up.

In addition, the total market value of cryptocurrencies on Monday also broke a new high, reaching $3 trillion; it is worth mentioning that Bitcoin accounted for an average of more than 60% of the total market value supply before the second quarter of this year, and this number gradually dropped to 42 after June. %, which means that more and more people are optimistic about the cryptocurrency market other than Bitcoin. The most significant change can be attributed to the rise of NFT.

Understand that the small number of people should give priority to investing in the development of sound cryptocurrencies

How do you allocate 24 hours a day? 8 hours on the Internet, 8 hours in the real world, 8 hours in sleep? Life on the Internet is ubiquitous. Facebook and many Internet giants are arrogantly deploying the “meta-universe”, and the meta-universe can be called the limit of NFT development. NFT is the abbreviation of Non-Fungible Token; in short, Bitcoin is a homogenized token, because every Bitcoin is of the same value and quality; on the contrary, NFT is every token (Or: smart contracts) are unique, so they are often used in artistic creation.

Personally, I am extremely disgusted with the hype of NFT cryptocurrency. The NFT market is still in its early stages. The market is mainly supported by collection psychology and speculative speculation, of which speculation accounts for the vast majority. However, I never deny the technical value of NFT. If I want to invest in NFT projects, I personally never recommend investing in NFT-derived cryptocurrencies, such as animal currency and meme currency; it is the infrastructure of NFT, such as Binance Smart Chain BNB Binance Coin under BSC, Ether (ETH) under Ethereum, the ancestor of blockchain applications. Regarding the new type of NFT infrastructure, I believe that observation is the best policy. At this moment, the development of NFT is not yet complete, and there is still a lot of room to be challenged; the most large-scale new NFT technology projects include multi-chain network Polkadot (DOT), open-source area Blockchain Solana (SOL).

Combined with the development of the meta-universe, NFT can be divided into three stages. 1. Art platform and game currency; 2. Finance, data, identity authentication; 3. Compilable NFT (meta-universe stage). At present, NFT is still in the first stage. Most of the NFT forms are artworks or game-related add-on products. After all, users who have a deep understanding of digital art or game characters still account for a very small number of users in the market. Most investors hype NFT The purpose is to derive cryptocurrencies. If the purpose of Metaverse is to allow each user to have a unique role in the virtual world, NFT 2.0 is the necessary stage to move towards Metaverse.

Hanging on the NFT coat is mostly a concept and hype

The so-called NFT 2.0 is not like online banking, which simply allows users to open accounts on the Internet, but integrates each user’s unique financial information, life big data, identity authentication, etc., which means that the birth of NFT 2.0 must Led by Internet giants such as Facebook, Google, and Amazon, through the combination of long-term data recorded by users on the Internet and AI calculations, each user can develop a unique role in the virtual world. NFT 3.0 allows users to live in parallel in the meta-universe as the NFT role through the user’s “life footprint” on the Internet. Anything that happens in the meta-universe is automatically compiled and expanded into the NFT role in real-time by AI.

Based on cloud computing power, decentralized storage, and the concept of NFT, it is not yet ready for the metaverse. I think it is too early to talk about the metaverse developed by NFT, but this is the trend of the Internet giants. Investors are advised to invest rationally. Memes, animal coins, game coins, etc., all cryptocurrencies with NFT coats are often hype issues. If you are interested in the cryptocurrency industry, Bitcoin, Ether, and Binance coins are all It is a relatively stable cryptocurrency.

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