The price of bitcoin hit a new high, which triggered a wide discussion and heated discussion in the market. Recently, the price of Bitcoin once exceeded 17000 USD 1, setting a new record. This news has attracted the attention of global investors, and major media have also reported this important event. The rise of bitcoin price is not only a change in the digital currency market, but also a major change in the global economic structure. This paper will analyze the background, reasons and influence of the price of Bitcoin breaking $65,438+0,700,000 to help readers better understand the investment value and market trend of Bitcoin.

I. Background

Bitcoin is a digital currency based on blockchain technology, which was founded by Satoshi Nakamoto in 2009. Unlike traditional currency, Bitcoin is not issued and regulated by the central bank, but is completely maintained and managed by network users. Because of its dispersion and anonymity, Bitcoin has become the first choice for illegal activities such as black market trading and money laundering. However, with the passage of time, Bitcoin has gradually become legal and widely used around the world.

Second, the reason.

1. Increased market demand: In recent years, due to the turmoil in the global financial market and the threat of inflation, more and more investors began to look for safe-haven assets. As a decentralized digital currency, Bitcoin is not affected by government intervention and inflation, and has become the first choice for investors.

2. Reduced supply: The total amount of Bitcoin is limited, and only 2 1 10,000 can be issued at most. Moreover, the issuing speed of Bitcoin is gradually decreasing, which means that the scarcity of Bitcoin will become higher and higher, thus pushing up the price.

3. Influx of institutional investors: Recently, more and more institutional investors began to set foot in the bitcoin market, which further promoted the rise of bitcoin prices. The participation of institutional investors not only brought more capital inflows to the market, but also increased the recognition and legitimacy of Bitcoin.

Third, the impact

1. Investment value: The rising price of bitcoin means that the holder's wealth increases and attracts more investors to enter the market. However, due to the volatility of bitcoin prices, investors need to have high risk tolerance and investment knowledge to avoid investment losses.

2. Economic change: The rise of Bitcoin will have a significant impact on the traditional financial system. Traditional financial institutions and central banks will face competition and challenges from Bitcoin, which may lead to the reconstruction and reform of the financial system.

3. Promotion of blockchain technology: The success of Bitcoin has also promoted the development and application of blockchain technology. Blockchain technology has the characteristics of decentralization, transparency and security, and can be applied to many fields such as finance, medical care and logistics, which is expected to change the business model and operation mode of traditional industries.