Bitcoin is a kind of high-risk asset, which does not advocate young people to add leverage to “speculate in currency”

Bitcoin is a kind of high-risk asset. Young people who are not hedge assets speculate in currency with leverage. It is dangerous that bitcoin with 210000 yuan will witness the history On the evening of January 2, Beijing time, after 95, Xu Zhou was “shocked” by the bitcoin market. Before the first working day of 2021, the price of bitcoin once again reached an all-time high of nearly 31000 US dollars. If calculated by the total market value, it is higher than the Berkshire company owned by Warren Buffett and Maotai, the “king of market value” of a shares. Xu Zhou has been paying attention to bitcoin for several years, and has also “speculated” several times. As in previous bull markets, he is eager to know what is driving up the price of bitcoin? Is there a bubble in the price of bitcoin in the new round of skyrocketing? As the global economy slows down and financial institutions increase bitcoin, bitcoin prices have continued the upward trend of bull market since December last year. After standing at $20000 on December 16, it started to soar all the way, from $21000 to $27000 in just 12 days. In the longer term, bitcoin prices have risen more than 10 million times in the past decade. According to a research report recently released by China Thailand securities, the nature of the rise in Maotai, house prices and bitcoin is the same. When money is over issued, buying gold, Maotai, core stocks and core real estate is a process of re searching for scarcity. The scarcity of bitcoin is the main feature different from paper money and tulip. The latter two can be printed and produced infinitely. Since the birth of bitcoin more than ten years ago, the ability of “mining” has gradually stabilized. Due to technical restrictions, the total number of bitcoin is limited to about 21 million. Under the influence of macro-economic environment, many institutional investors enter the stock market and the currency price rises in front of the huge market demand. William William, chief researcher of okex Research Institute, believes that the recent rapid rise of bitcoin does have speculation and speculation, but the direct reason is the admission of high net worth investors and institutional investors. Since the second half of 2020, financial institutions such as Masson life insurance company, an American insurance giant, have bought bitcoin. Online payment giant paypal and Singapore’s largest commercial bank DBS have also announced that they will launch cryptocurrency payment services. According to bitcoin holdings Statistics Platform bitcoin holdings, more than $6.9 billion worth of bitcoin is currently held by listed companies. In fact, in recent years, as a new way of asset allocation, bitcoin has gradually attracted more and more attention on Wall Street. Several financial institutions have submitted bitcoin ETF (an open-end fund listed on the stock exchange and with variable fund shares) to the US Securities and Futures Commission (SEC). However, due to market volatility, industry manipulation, liquidity scarcity and other concerns, the US financial regulators opposed it Issuing bitcoin ETF. Hong shuning, Chief Strategic Officer of Zhejiang Yongqi blockchain Technology Co., Ltd., said that in the second half of 2019, the “gray bitcoin trust fund” has been actively purchasing bitcoin. Investors can use the trust fund to purchase bitcoin with U.S. dollars through the trust fund for trust management, but the fund in this channel will flow one-way to bitcoin. By 2020, due to the impact of the new crown pneumonia epidemic, the Federal Reserve will “release water”. Many investors are worried about inflation and will invest more money in bitcoin through the “gray bitcoin trust fund”. According to William’s analysis, the deep-seated reason behind the massive purchase of bitcoin by financial institutions is the change of global macroeconomic situation this year. On the one hand, affected by the epidemic situation, the global economic recovery will slow down in 2020; on the other hand, on behalf of the US central bank, some central banks have launched extremely loose monetary policies, pushing up inflation expectations in the financial market. In the high inflation and low growth economic environment, in order to avoid the loss of nominal principal and pursue higher returns, investors’ demand for cash has naturally evolved into the demand for gold and bitcoin. The news that bitcoin prices have skyrocketed again is always the first to spread in the currency speculation circle. Recently, many people have come to ask Hu Hao (not his real name), “it is said that bitcoin has risen to more than 100000 yuan a piece. How much did you earn?” On such questions, the young man born in 1992 always laughs: “what does it have to do with us?” Hu Hao has been in contact with virtual currencies such as bitcoin and ether since 2016. At the beginning, he bought mining machines with several students to “mine”. When the market is good, “more than 10000 yuan a mining machine, a month back to the original.”. In that year, many people in the small counties and cities in Northeast China set up electric wires privately and “steal electricity and mine”. Hu Hao noticed that at that time, the main crowd of “money speculation” was the young people in the county. They generally did not have stable jobs, but they learned the myth of bitcoin and other virtual currencies through the Internet. “There are about ten primary school students playing with coins. Most of them have never gone to university or worked in a big city.” By “mining”, Hu Hao made his first money and bought 0.5 bitcoin. At that time, all kinds of “counterfeit coins” came into being, and ICO (the first issue of coins) once again achieved a wave of making rich myths. Hu Hao also joined the ranks of “fried Shanzhai coins”, and changed all the bitcoin on his hand into other small currencies. However, the new deal of ICO in September 2016 made the vast majority of virtual currencies “reveal their true colors”, and the currency value of Hu Hao’s hand has shrunk from more than 100000 yuan to 230000 yuan. Playing virtual currency for nearly five years, Hu Hao lost more than 50000 yuan. Like many young people who “fry money”, he often mocks himself as “leek”. Recently, the price of bitcoin has reached a new high, and some friends come to him to ask him for advice. Hu Hao always tells his own story, and in the near future he will persuade him with good words: it is impossible to make a fortune by relying on bitcoin to make a fortune. But the experience of our predecessors can not block the enthusiasm of later generations. During the outbreak, Xu Zhou bought some bitcoin at a price of nearly $4000, and pulled out when the price doubled. Recently, the price of bitcoin has risen to $23000, and many novices have come to him for advice, hoping to “make another profit” with him. Although “regret to the thigh are patted swollen”, but Xu Zhou still refused the invitation of these novice friends. His reason is: “everyone can only earn money within their own cognition, I can’t understand the current market.” At the core of virtual currency trading, William noticed that the current round of bitcoin bull market was dominated by institutions at the beginning, but now it has a trend of turning to small and medium investors. One of the evidences is that when the bitcoin price broke through the $20000 mark, a large number of investors began to pour into the cryptocurrency market, which once caused some cryptocurrency exchanges to be stuck or down, and even some investors used credit cards or loans to “fry money.”. In market research, they also found that some investors have increased leverage by more than ten times or even dozens of times to “speculate in currency”. “It’s not something to promote.” In fact, the bitcoin market is still known for its volatility. According to the past trend chart of bitcoin prices, there have been 10 times that bitcoin prices have fallen by 20% or more since 2016. There were seven times of 30% decline and four times of more than 48% decline. Hong shuning also reminded that the acceleration of bitcoin price rise will inevitably form a larger bubble, especially the need to pay attention to risks. “Market excitement has been further amplified, driving bitcoin prices to rise rapidly.” William reminded that young ordinary investors need to be rational and correctly realize that bitcoin is a high-risk asset rather than a safe haven asset, and its price fluctuates greatly. Therefore, it is not necessary to increase the leverage easily, otherwise the investment risk will be further enlarged. China Youth Daily ยท China Youth Network reporter Wang Lin source: China Youth Daily source: China Youth Daily

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