Hong Zhen: Bitcoin ' s long-term value stems from scarcity and decentrization of credit systems, and the cyclical window was opened in the third and fourth quarters of this year

On 31 July, a prominent economist, Hong Zhu, shared the latest views on the long-term value of the coin and the market cycle at a private meeting under the currency line. According to Hung, the long-term logic of Bitcoin is clear, with its 21 million fixed supply ceilings determining its scarcity and building a value base different from traditional French currency systems. Turning to the relationship between bitcoin and gold, Hong Zheng indicated that both had a scarcity and long-term value storage properties, but different sources of credit. Gold, which has accumulated human credit for thousands of years, and bitcoin, which depends on decentrized networks and fixed supply mechanisms, is creating a completely new credit system. In the long term, the gold target is $10,000 and the bitcoin target is $1 million. With regard to the bitcoin cycle of market concern, Hong Zheng noted that limited supply determines the natural cyclical nature of such assets. According to his team ' s periodic model, he believed that there would be an important window of time for a new cycle during the three- or four-quarter turn-over period of the current year. However, he also reminded investors that despite the proximity of the window, they could remain patient and wait for further market uncertainty to emerge。