Bitcoin's 12-year development highlights the value of Blockchain currency, with institutional investment becoming a new driving force in the market.

The pioneer of crypto assets, Bitcoin, was born after the financial crisis, with its founder Satoshi Nakamoto aiming to provide a decentralized blockchain currency to address the flaws of the traditional centralized monetary system. After 12 years of development, Bitcoin has become a financial phenomenon that cannot be ignored. As stated by a major financial institution, something that has existed for 12 years is hard to simply define as a bubble.

With the increasing popularity of Bitcoin's value consensus, its recent performance has attracted widespread attention. In early January 2021, the price of Bitcoin broke through the $40,000 barrier, reaching a historic high of $41,940, doubling in value in just over a month. Subsequently, Bitcoin touched the $40,000 mark again, and this trend of repeatedly setting new highs has greatly invigorated the crypto assets market.

According to market data, as of January 20, the price of Bitcoin fluctuates around $35,000. This volatility is expected and aligns with the characteristics of the Bitcoin market. Due to its Decentralization and anonymity, the volatility range of the Bitcoin market is often larger. Data shows that the daily average volatility of Bitcoin is 3.75%, and it experienced an extreme situation on March 12, 2020, with a single-day drop of over 50%.

Compared to the bull market in 2017, which was mainly driven by retail investors, the new round of increases that began at the end of 2020 was more driven by institutional investors. Data shows that in mid-January 2021, there were multiple large Bitcoin transfers, with the largest single transfer reaching 17,283 BTC (approximately $616 million). During the period from January 11 to 15, a total of 65 large transfers were monitored, of which 19 were from anonymous wallet addresses, transferring a total of 92,201 BTC, worth approximately $3.5 billion.

Blockchain data shows that only 0.00695% of Bitcoin addresses control 42.5% of the Bitcoin supply. This change in holding structure indicates that institutional investors are becoming an important force in influencing the Bitcoin market, alongside large holders. The deepening consensus on Bitcoin's value undoubtedly provides strong support for its long-term development.

The core characteristics of Bitcoin determine its enduring vitality. First is security, as its underlying design from transactions to the Blockchain structure is aimed at strengthening the trust mechanism. Theoretically, only those who control 51% of the computing power can crack the system. Despite experiencing multiple attacks, the Bitcoin network itself has always remained secure, with the only vulnerability being users' management of their private keys.

Secondly, there is scarcity and irreproducibility. The total supply of Bitcoin is limited to 21 million, and mining is expected to stop by the year 2140. This artificially designed scarcity makes it a unique digital asset. It is worth noting that due to reasons such as lost private keys, it is estimated that around 3.7 million Bitcoins have permanently disappeared, further increasing its scarcity value.

The high volatility of the Bitcoin market stems from its Decentralization characteristics and free market mechanisms, which are not restricted by the fluctuations or circuit breaker mechanisms of traditional financial markets. Currently, the attitudes of mainstream Financial Institutions towards Bitcoin show a clear divergence, ranging from strong opposition to extreme support.

Whether it's regulatory concerns or competition from other crypto assets, these factors may have a significant impact on Bitcoin. However, these factors more highlight the value of Bitcoin rather than determine its fate. After 12 years of development, Bitcoin has proven its resilience and adaptability, and time will continue to validate its long-term value.