Bitcoin in Chinese was berserk is why?

Bitcoin in Chinese was berserk is why?
?

[Abstract] if there is no national political power and market credit insurance, this digital currency is not only facing the risk of collapse in technology, but also face the risk of bankruptcy in concept.

In China, who can hype things, that may arise at any time last year berserk, grab the stock for half a year, this year many city robbed the house, and then grab the commodity futures, because in Chinese investors, as long as these things is to grab grab money, not so crazy. Not only is the characteristic of Chinese investors berserk, but also because the domestic market is in travel tens of trillions of funds.

These funds in the domestic market in the pursuit of a goal can be berserk. This does not, the domestic commodity futures gamble has not completely ended, bitcoin has become a target of domestic funds berserk.

Recently, with the Fed rate hike is expected to heat up, the strong dollar became the focus of the international market. And the strength of the dollar is the biggest affected Asian currencies, and led to the Asian currency devaluation of the RMB is no exception. Fed chairman Yellen said that if the continued strong economic and employment market, the Fed is suitable in the coming months is likely to raise interest rates.

Although Yellen did not specify a specific meeting in which interest rate hike, but her speech is pushing up the fed in the policy action is expected to close again. Because of Yellen’s speech that the dollar index rose rapidly, which not only let the calm months of RMB devaluation, reached a 5 year low in yesterday, the devaluation of the renminbi, but also stimulate the bitcoin (Bitcoin) immediately soared.

That is to say, as long as bitcoin sideways after 5 months, in recent days rose upward and hit, nearly two-year high.

Reported that the bitcoin crazy rally from last Friday (27 days) started, after 3 consecutive trading days up after last week, the cumulative increase reached 32%, after the November 2013 bitcoin bubble biggest weekly gain. Intraday price is more close to $600, a record high since July 2014.

Bitcoin news website CryptocoinNews in May 27th according to the bitcoin trend of technical analysis, prediction of bitcoin prices will rise to $500. Did not expect that in a few hours later, bitcoin prices will soon break through the $500 mark. But in the evening of May 29th, from a peak of $600 bitcoin fell, fell to near $526.

For the bitcoin suddenly rising, many market participants believe that may be a strong dollar and RMB devaluation, because the devaluation trend, domestic investors to sell Renminbi denominated assets to chase bitcoin.

According to the estimation of the market, the current global market bitcoin market value of about $8 billion. In the view of domestic investors, bitcoin market has such a large capacity, a way of asset selection is also, because of the present situation, hold bitcoin is the most convenient way to the dollar.

From the current trading platform data, on Friday bitcoin prices rose to $530, up to 95% of the transaction amount is denominated in RMB trading. That is to say, in the recent rise in this crazy Bobbi bitcoin, most transactions are people in berserk.

This is also why bitcoin serious push. It can be said that as long as the dollar remains strong, the RMB will decline gradually, domestic capital flight is an inevitable trend. In this regard, the domestic capital flow control may be more severe, in this case, domestic investors may choose to bitcoin as the transfer of assets to overseas, this may also lead to further bitcoin crazy. However, domestic investors must be careful to.

Because, although bitcoin is in the domestic hot, domestic investors started berserk bitcoin, despite the research and development of bitcoin technology “blockchain is global hot, but the relevant professionals in the future of bitcoin basically pessimistic.

According to reports, a few months ago, bitcoin core development team in MikeHearn said boldly in an article, bitcoin has entered a failure. What is worse, the bitcoin community has failed, the whole network technology has come to the brink of collapse.

TransferWise president of TaavetHinrikus international payment more saying “bitcoin is dead”, the real economy is no longer use bitcoin transactions. In fact, in 2013 the Chinese disappeared bitcoin fanatic, bitcoin has retired, especially in 2014, bitcoin exchange Mt.Gox bankruptcy bitcoin were the worst hit.

However, these are only from a technical point of view bitcoin future trend, if from the point of view of the nature of currency bitcoin’s future development, this kind of digital currency to truly become an investment tool possibility is not too large.

Because, if there is no national political power and market credit insurance, this digital currency is not only facing the risk of collapse in technology, but also face the risk of bankruptcy in concept. Therefore, domestic investors in 2013 lessons can no longer bitcoin too crazy.

Transfer: Kim assessment media

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