Breaking News

Bitcoin is more expensive, holding money has become a status symbol?

Bitcoin, a very popular cryptocurrency, is also considered to be digital gold. Its performance was good last year. It has also become one of the best investment options in the past year when bitcoin rose more than 1,500%. The rising price of digital assets has led to the holding of a symbol of social status.
Bernstein Research compared white wine with the bitcoin economy, which represents China's social status. In order to further explain the driving factors of rising demand, researchers also use traditional Chinese medicine donkey-hide gem and virtual currency to make contrast.

Analysts mentioned:

Bitcoin does not provide investor cash flow or other advantages, but its total amount is fixed and therefore its price is driven by underlying demand speculation.

The total amount is the key

Bitcoin cap is 21 million, reaching this ceiling, bitcoin can only be used as a transaction, mining will stop there. As more bits of bitcoin are dug up, the difficulty of mining increases. Therefore, the miners must pay more resources, but not proportional to the reward received. In addition, cryptocurrency demand for Bitcoin is not real? Many experts say about 1,000 cryptocurrencies dominate 40% of the market. In addition, the future of the cryptocurrency market is also full of uncertainty.

The uncertainty of bitcoin itself caused its price to fluctuate. In addition, bitcoin exchanges around the world are given different prices, which can result in large spreads.

Analysts pointed out:

In such a world, investors will be wavering - whether the widespread adoption of bitcoin pricing, or the soaring currency price, or the risk of bitcoin zero real value?

Bitcoin and gelatin

Ejiao is a traditional Chinese medicine, extracted from the donkey skin, the main effect is anti-aging and blood. Analysts compared bitcoin demand with Ejiao.

Researchers pointed out that in 2016, China took 5,000 tons of donkey-hide gelatin from 2.5 million donkeys. As a result, the number of donkeys dropped drastically, leading many to choose cowhide and horse hide for fraud. The rise in demand has led to a 18-fold increase in the price of gelatin compared to the past decade.

Limited amount = scarcity

Bernstein calls the cap on the amount of "credible scarcity" similar to Bitcoin. Ejiao's only strength is its demand is predictable.

Fetien card (Xiao Bian best, really can not guess what brand) is very popular white wine, this high-end demand for Chinese wine came in the bitcoin and gelatin between. To drink on this wine represents a very high social status, with Weber's goods [1] is a reason.

This Weberian demand was one of the factors driving Fetien's 400% price increase between 2007 and 2012, and as a result, its price has risen 64% in the past year.

Weberian needs

The law of supply and demand shows that once the price of a commodity falls, the number of consumers buying increases. However, for Weber's merchandise, the higher the price, the more attractive it is. Therefore, we will see that people are willing to pay a very high price to buy luxury goods. Bernstein calls the value of such products " 虚荣价值".

Analysts said bitcoin shows similar characteristics to Webster's product. As the price of the currency rises, people who hold bitcoin think highly of themselves, feel cool and even think they are unique. Holding digital gold such as digital gold represents a person's social status.

In mid-2017, we conducted a consumer survey and interviewed 1,070 high-value-priced Chinese consumers. The survey results show that Weberron demand is one of the important factors driving people to choose the high premium brand Fetien (emmm ... Maotai?) And its competitors Wuliangye. Thirty-two percent of respondents pointed out that 'providing such products is a respect for guests' and is a key factor they consider when choosing a brand. 'People like me should drink this brand of wine' - 23% of respondents chose this reason.
Finally, whether Bitcoin, Fetien or gelatin, their sources of value are limited supplies. The first half of 2018 will be a very important and interesting time. What role can crypto-lovers play in the bitcoin market?

Although Bitcoin is gaining popularity around the world, many governments and regulators are beginning to pay close attention to it. Recently, both South Korea and Australia have stepped up their regulation of cryptocurrency traders. However, the impact of government regulation on speculative demand for Bitcoin is still unknown.

Veblen Good, also known as show off, is economically used to describe a commodity characterized by a positive relationship between the demand for commodities and the price of the commodity, rather than the reverse of the normal demand law. This kind of product can satisfy the vanity of mankind and show off wealth and status.