2021 witnessed history again: bitcoin broke $30000! Surpass Buffett! Is it an opportunity or a pit?

Source: Australian financial information 4339 words estimated reading time 6 minutes reading navigation preface what is bitcoin? Why is bitcoin worth so much? Bitcoin industry chain bitcoin in Australia postscript preface on the evening of January 2, bitcoin price broke through 30000 US dollars (39000 Australian dollars) for the first time, and the market was boiling. In the past period of time, bitcoin has attracted the attention of investors. In recent days, as the price of bitcoin has hit new highs. It also makes bitcoin a popular search term and hot search term on social platforms such as twitter and microblog, which has a great reputation for a time. At a time when the Federal Reserve is printing money desperately, I am afraid that only afterpay and bitcoin can fight inflation:) The picture is from the Internet. According to the global asset market value ranking, bitcoin’s market value has surpassed all Australian enterprises. With a market value of US $570 billion (about a $7409), bitcoin ranks ninth in the world, slightly lower than Alibaba, which ranks eighth. Bitcoin / Australian dollar trend AFN Research Institute, tradingview1 what is bitcoin? Since bitcoin broke through $20000, its price has been hitting new highs. Looking back on the past year (2020), the price of bitcoin has risen by a full three times. In 2021, the price of bitcoin continues to soar in the first two trading days. On the evening of January 2, it exceeded $30000, and the price of each bitcoin reached $31726. On the evening of January 4, it broke through $34355.68. In fact, the concept of bitcoin was originally traced back to a paper entitled “bitcoin: a peer-to-peer electronic cash system” published by Nakamoto in 2008, which described an electronic currency and its algorithm which he called “bitcoin”. In 2009, Nakamoto released the first bitcoin software and officially launched the bitcoin financial system. The identity of Nakamoto has always been a mystery. Satoshi Nakamoto (English: Satoshi Nakamoto), who calls himself a Japanese American, is often translated into the history of Chinese philosophy by Japanese media. He is the creator of bitcoin protocol and its related software bitcoin QT, but his real identity is unknown. The picture is from the Internet. Interestingly, in 2010, Nakamoto gradually faded out and handed over the project to other members of the bitcoin community. He is also believed to hold about a million bitcoins. According to Nakamoto’s idea, the open source software is designed and released and the P2P network on it is constructed. Bitcoin is a kind of P2P virtual cryptocurrency. Point to point transmission means a decentralized payment system. Throughout the whole process of bitcoin since its launch. Based on the price of bitcoin in 2010 for the first time since its birth in 2009, the corresponding price is about $0.0025, up to January 3, 2021. Over the past 10 years, the price of bitcoin has risen more than a record 12 million times. In terms of the total market value, the current circulation market value of bitcoin has reached 590 billion US dollars (about 766.9 billion Australian dollars), which is an amazing number, which means that the market value of bitcoin is enough to stand out in the ASX market. Why is bitcoin worth so much? Some readers will surely ask why bitcoin has such a high value? The first is the scarcity of bitcoin. Bitcoin is the most valuable asset in history. Only 21 million bitcoin will be mined, instead of flooding the world with restrictions like the current government decrees. In 2020, under the impact of the epidemic, governments around the world are carrying out quantitative easing policies, which highlights the scarcity value of bitcoin. The picture from the RBA will have only 21 million virtual “currencies”, which makes bitcoin more like gold or other precious metals than paper money. At the same time, because supply is strictly limited and because of the cost of the huge computing power required to “mine” coins, it has an inherent “value.”. As bitcoin is getting closer to the completion of its “coin mining” stage, the scarcity value of each bitcoin may receive greater attention. The second is the price performance of bitcoin, which fully demonstrates the “core assets” emphasized in value investment. Institutional investors have also transplanted the investment concept of “core assets” to the cryptocurrency market. Just like the fairies in Australia, where bitcoin has been rising, more than 90% of digital currencies in the cryptocurrency market lack funding attention. And bitcoin, the “core asset” with continuous and focused institutional funding, has also led to the market value of bitcoin accounting for 71% of the total market value of cryptocurrency in the world. Review bitcoin’s bull market. The first stage started in February 2019, which was suppressed by the selling of plustoken for a long time, and then rebounded. By the beginning of 2020, it will be impacted again by the epidemic situation, and this round of decline will end with a sharp drop of 3.12. In the second stage, from March 2020, the price limit has been rising all the way. By the end of 2020, it has successfully reached a new high and exceeded 20000 US dollars, confirming the formal arrival of the bull market. The mark of the third phase is to take it to a new level in less than a month – breaking through $30000. This round of rise fully demonstrated the market’s strong confidence, thoroughly pulled the short. Driving this record move is the increasingly popular notion that bitcoin represents a kind of “digital gold” and the influx of institutional investors into the cryptocurrency. Laurent kssis, managing director of 21shares, said, “bitcoin prices are driven by institutional funds, and there is not enough supply.” “The number of family offices asking to invest in our ETPs is staggering. I’ve never seen this before. Only retail investors joined in 2017, and now only institutions are left. ” Earlier on January 2, more than 35000 bitcoins, worth more than $1 billion, flowed out of the institution focused coinbase Pro exchange, according to cryptoquant. At the beginning of 2021, bitcoin is still at an all-time high, said Daisy, a senior analyst at the firecoin Institute. At present, it is still the initial stage of opening the halving market. The supply factor of halving the long-term output is becoming stronger and stronger. From quantitative change to qualitative change, the pace of admission of institutions is orderly. With the outbreak again, the logic of dollar weakness still exists. In addition, recently, the SEC of the United States began to strengthen its supervision and made a strong attack on REBO. Ruibo is facing a large-scale delisting. The investors of Ruibo may transfer the problem assets to the high-quality assets, so bitcoin gets more demand, which is one of the reasons why bitcoin price is still pushed up. The strengthening of supervision this time reflects the significance of decentralization, which has a very positive impact on the special currency. Some Wall Street analysts even believe that bitcoin prices may reach $400000, but the soaring trend may be suspended in early 2021, and the bull market at this stage will end with a rapid inflation bubble. After that, it will wait for the market correction before launching the next round of bull market shock. The picture is from the network 3 bitcoin industry chain. The bull market of bitcoin also led to the strong rise of related industry chain stocks. One of the most interesting is bit digital (NASDAQ: BTBT), a bitcoin mining company. NASDAQ listed bit digital shares have risen 53 times in the past year. Over the same period, the S & P 500 and the NASDAQ rose only 15.5% and 43.4%. Bitdigital stock trend AFN Research Institute and tradingview recently disclosed the financial report of the first three quarters of 2020. The financial report shows that as of September 30, 2020, the company has operated 22869 mining machines, including 16964 new machines in the third quarter and 814.23 bitcoin output, among which 739.51 new mining machines are added in the third quarter. Bitcoin mining pictures come from the Internet. The company generated $8.6 million in revenue in the first three quarters, of which $7.91 million was in the third quarter. At the same time, due to the signing of more mining machine acquisition agreements and the favorable implementation and overall environment of bit digital, the company’s subsequent computing power and profitability will be greatly improved. The stock trend of BTBT: AFN Research Institute, tradingview and NASDAQ listed marathon patent group (NASDAQ: BTBT) have recently been affected by the positive impact of bitcoin, which has made its share price rise 10 times in the whole year. The company announced on December 28, 2020 that it would buy 70000 sets of s-19 ant miner with ASIC chips from bitmain, a Chinese miner, at a sky high price of US $170 million. The order will be delivered by the end of 2021, when the total number of mining machines of Marathon patent group will exceed 100000. Considering the constant characteristics of bitcoin and the total number of 21 million bitcoin, the scarcity of its value has attracted more and more attention of the market. Scott minerd, chief investment officer of Wall Street giant Guggenheim partners, said his company’s fundamental analysis showed that bitcoin should be worth $400000. According to minerd, the price target is based on the scarcity of the asset and its relative value relative to gold. Previously, it was reported that the $5 billion Guggenheim macro Opportunity Fund applied to the US SEC to invest in gray bitcoin trust or allocate $530 million in bitcoin. The Wall Street giants’ long overweight (bitcoin, bitcoin industry chain) will also inject more stimulating factors into the market. 4 bitcoin in Australia compared with the United States and Japan support and embrace the policy, Australia is relatively cautious in the supervision of cryptocurrency. As early as July 1, 2017, Australia announced bitcoin and other cryptocurrencies as legal currencies. Australia may not be the biggest market for bitcoin and other cryptocurrencies, but it is a fast-growing market. However, in early 2018, due to financial supervision and other factors, the four major Australian banks have frozen the account and transfer function of their customers (people who trade cryptocurrency) into the exchange. The targeted exchanges include coinjar, coinspot, coinbase and BTC markets. But bitcoin continues to build momentum as a way of payment. In July 2019, the Australian supermarket network IgA began to accept bitcoin payment. The picture of IgA comes from Caleb Yeoh, co-founder of online travelbybit, cooperates with IgA Australia supermarket to equip each supermarket cash register with travelbybit POS device, which supports payment with BTC, ETH, LTC, etc. In the same month, Curtin University in Western Australia announced the launch of a doctorate in cryptocurrency. Curtin University accepts bitcoin, and the Ethereum cryptocurrency PhD Scholarship Fund will allow companies and individuals to help doctoral students learn blockchain, network security and data analysis through cryptocurrency funding. More notably, in mid-2020, a new state court allowed the use of cryptocurrency exchange accounts as security for legal fees. In a libel case, the new State District Court was asked to force the plaintiff to deposit $20000 into a bank account controlled by the court, 9news reported. Judge Judith Gibson said she was prepared to accept the instability of cryptocurrency: “however, it is a recognized form of investment.” The judge said in a ruling this week. Throughout the development of bitcoin in Australia, the current Australian regulatory authorities’ active planning and rules on cryptocurrency are considered to be conducive to the healthy and long-term development of the cryptocurrency industry in Australia. In the postscript, it has been said that bitcoin’s rise is also hype. In fact, the price of assets is set by the market. It’s worth as much as you think it’s worth. The price of bitcoin is not set by someone, it is determined by the market. At this point, it is an investment. Bitcoin skyrocketed, the market began to stage a sudden wealth of life, investment failure, is not a few. After the dazzling concept was born, after hesitation and confusion, capital and flow began to pursue crazily. Magic reality another year. The pictures of the stills of the Wall Street film are from the network reference source: http://www.theaaustralian.com.au/world/the-times/cryptocurrency-like-like-bitcoin-are-ready-to-go-mainstream / news-story / 1e8c7c18c18a4a24a24c60a13e6e1e1c138d5a8https://www.smh.com.com.au/business/markets/markets/music-talks-talks-and-bitcoin-to-bitcoin-to-dominate-week-to-go-go-mainstream / news-story / 1e8story / 1e8c7c18a4a24a24c60a13e6e1c138d5a58https://www.smh.com.com.au/business/markets/markets/markets/markets-business/markets-businesses/and-talks-talks-and- 20201206-p56l10.html

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