What are the advantages of Bitcoin transactions (the transaction value of Bitcoin)?

08/17/2023 13:30 • Crypto & Markets • 53 views

What are the advantages of Bitcoin transactions? Bitcoin, as a digital currency, has the characteristic of decentralization and can realize settlement in international trade. It can effectively solve many problems in the world today, such as high remittance costs and opaque capital flows, but Bitcoin has encountered troubles in the process of dealing with these complex issues. Asset management and transactions have become more convenient and secure through this way, and it also helps reduce operational risks for people.

For individual investors, Bitcoin is a choice for investment because its price volatility is very high. By using it as a daily investment tool or for paying goods and services, they can save a lot of money, which will bring them greater returns and greatly reduce their financial burden. In addition, Bitcoin also has a relatively high value, so it can provide more freedom.

Transaction Value of Bitcoin

According to the standard consensus Bitcoin transaction value model, after reaching a historical high in November 2017, Bitcoin began to decline. At present, with the increasing demand for digital currencies and the expectation of rising Bitcoin prices in the market, its transaction value may decrease significantly in the next few cycles.

Essentially, the transaction value of Bitcoin depends mainly on whether it can effectively serve as a store of value, rather than a specific asset that can be widely used for daily consumption or payment, or as a medium for other financial services, investment tools, etc. Therefore, due to the characteristics of interchangeability and scarcity in Bitcoin, its transaction attributes are receiving more and more attention. However, Bitcoin itself is not like this, and its transaction characteristics do not meet this condition. It is a “speculative” type, which means it does not require any fundamental function or use case to be realized; instead, it is obtained in some way and circulated through various intermediaries on the network; and compared with other cryptocurrencies, it does not possess this characteristic, as it cannot be directly converted into fiat currency.

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What are the advantages of Bitcoin transactions (the transaction value of Bitcoin)?

Transaction Value of Bitcoin

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