Over time, Bitcoin is likely to gain more investor recognition for other reasons. For example, because the total supply of Bitcoin is constant (21 million), it has a good anti-inflation ability compared with a country's French currency. In the long run, the purchasing power of such encrypted currency will be higher and higher. In addition, the supply of Bitcoin is not regulated, but also has many advantages that the French currency does not have. For example, Bitcoin is a global encrypted currency, currency issuance is not controlled by a centralized central bank, cross-border transfers are very convenient and do not generate a lot of transaction and administrative costs. Banks, money markets and financial traders can not make use of their own in the traditional financial field. Centralization and profit extraction. All of this makes Bitcoin an encrypted currency suitable for long-term investment and holding.
Although we can deduce that media propaganda, political risks and uncertainty, regulatory actions and community autonomy are the main factors affecting the short-term price changes of Bitcoin, the technology itself is still full of variables, and is still in the experimental and development stage. So far, there is no effective mathematical mechanism to predict the future trend of the encrypted currency. Investors have to be vigilant and bear their own profits and losses.
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