Bitcoin is going crazy. Are you rich?

When someone asks you whether you have made a fortune by frying money at home during the Spring Festival, how should you go back to him? “Bitcoin has gone up a lot recently. Are you rich?” Now that bitcoin stands at $30000 and Ethereum breaks through $1000, I believe many cryptocurrency investors have received “care” and “greetings” from friends who have not been contacted for a long time. As a friend, if you look at the news and reply, “where and where, net loss of money”, they will think you are not honest enough: harm! If you make money, you can make money. There is no need to hide and tuck in between friends. “Bitcoin skyrocketed, and those who speculated in it became rich.” this is the wishful thinking and self righteous misunderstanding of bystanders outside the circle. No one doesn’t like to talk about wealth stories, and bitcoin happens to be the best conversation right now. If the bystander has one or two friends who are engaged in the cryptocurrency industry, it will become a “fact” that the “speculators get rich”. “Bitcoin has gone up, but I’m not as rich as others think.” this is an embarrassing situation for 80% of investors in cryptocurrency. So there is such a paragraph: when someone asks you whether you have become rich by frying coins at home during the Spring Festival, you can reply to him like this: bitcoin is a pyramid selling game of beating drums and flowers, which has been banned by the state for a long time. It has neither credit endorsement nor legal tender, and the central bank strictly forbids financial institutions to participate. Although I have bought some before, fortunately, I realized that they were sold. Not only did I not make money, but also I lost a little. You said that I was angry 1. Bitcoin goes crazy. Yes, bitcoin goes crazy. Although the word “Crazy” is often abused, it’s no exaggeration to use it in bitcoin for the past two months. The most intuitive is the currency price: on December 16, bitcoin broke through $20000, and yesterday it broke through $30000, reaching a peak of $34762.8. In more than half a month, it has increased by $10000, which is a huge impact on both the practitioners of the cryptocurrency industry and the bystanders outside the circle. However, if you know that bitcoin’s lowest price in March 2020 is more than $3800, the impact of this sky to earth comparison may be even more shocking. With the rising price of bitcoin, its market value is also rising, surpassing Wal Mart, TSMC and Alibaba successively. As the “king of coins” in the field of cryptocurrency, the rapid rise of bitcoin also led to the rise of Ethereum and other currencies. Just today (January 4), Ethereum broke through $1000, reaching a maximum of $1160, a one-day increase of more than 45%, creating a new high in the past two years. Arbitrarily open the market list of an exchange, the top currencies almost all float green, and the increase rate is more than 10%. This is a situation that cryptocurrency practitioners have never seen before. For outsiders, not everyone will pay attention to bitcoin market data, and even some people don’t know much about bitcoin. However, the attention of the mass media and social media caused by the soaring currency price has really brought many people into the public opinion field labeled with “Crazy” and “wealth”. Just yesterday, when bitcoin started its history, “bitcoin broke through the $30000 barrier” was on the hot spot list of microblogs in real time, ranking No.19 on the hot search list with the popularity of 234423. Today, the Beijing business daily and the financial times have published reports on bitcoin. In the face of bitcoin’s breakthrough of $30000, the media have followed suit. However, when bitcoin soars, will speculators become rich? 2. It’s not retail investors who make money. It’s hard not to recall the big market at the end of 2017 in this bull market. Although they all break through the rise and create history, the motivation behind them is quite different, which also determines to some extent who is the biggest gainer of this wave of rise. The bull market at the end of 2017 is generally recognized to be caused by ICO. The issue of coins and fund-raising led to the rise of currency prices. Retail investors fomo, bitcoin, Ethereum and other cryptocurrencies have reached a new high, and a group of people are free of wealth. This time is different. There are various signs that the rise of bitcoin is driven by institutions, which is known as “institutional bull”. Of course, the most famous bitcoin “Mingzhuang” is the gray fund, which keeps increasing its holdings of bitcoin and other cryptocurrencies. At present, the number of bitcoin holdings reaches 607108. In addition, MicroStrategy purchased about 29646 bitcoins with $650 million in cash on December 21, following a $425 million purchase in August and September last year. On January 1, Michael Saylor, founder of MicroStrategy, publicly announced that he had purchased 88000 bitcoins through MicroStrategy or entities he controlled. At current prices of about $30000, Michael Saylor’s bitcoin holdings are worth more than $2.6 billion. In addition, on December 12 last year, MassMutual, an American insurance company, was also exposed to have purchased 5470 bitcoins, totaling $100 million. So far, 28 companies around the world have publicly held a total of 1.15 million bitcoins, accounting for about 5.48% of the total bitcoins, according to With the rise of bitcoin, the book profit of institutions entering the market this year has been very considerable, almost killing the profits of its main business or in the traditional financial market. MicroStrategy, for example, has made a net profit of only $271 million from its main business in the past five years, but has made more than $300 million from its investment in bitcoin in just five months. It can be said that five months made the money of the past five years. In addition, because of bitcoin’s entry, the company’s share price has nearly doubled since August last year. Do retail investors still have bitcoin? In fact, after the 312 bitcoin crash, many large and retail investors have either burst their positions or left the market with meat. This shadow has been shrouded in many people’s hearts. Another interesting evidence is this: in November last year, okex, one of the three major exchanges, announced the suspension of currency withdrawal. However, this negative effect did not cause significant fluctuations in the price of bitcoin. At that time, Wan Hui, the founding partner of primitives ventures, said, “this incident further illustrates that there is no bitcoin in the hands of Chinese retail investors.” In addition, in November, when bitcoin broke through $14000, but there was little discussion in the circle of friends, Xu yingkai, founder of blockvc, also asked: has bitcoin gone to China, has it been decentralized? It is not easy to judge whether bitcoin has been “dechinized”, but it may be a fact that bitcoin has been “decentralized”. 3. Bitcoin is fast money? “28 law” tells us that 20% of the people in the society occupy 80% of the social wealth, and most of the wealth goes to the hands of a few people. The same is true in the cryptocurrency market represented by bitcoin. No matter whether institutions enter the market or not, those 20% of the people who really make money are always those who make money. However, outsiders may not think so much about it. What they see is the rise of bitcoin and the irrational imagination of “sudden wealth”. In fact, after the bitcoin boom, in addition to the fact reports in the media, there are also a lot of comments with bias or sigh. For example, as far away as Sanya, Lu Kewen, an Internet celebrity writer lying on a beach bench with sea breeze, wrote an article “how to see the rise of bitcoin” on his mobile phone. Leaving aside the prejudice of Versailles and ignorance in the article, Luke’s starting point is good, breaking some people’s unrealistic fantasy of bitcoin and calming some people’s anxiety of missing bitcoin. However, lukewarm’s logic of appeasement or persuasion is not as brilliant as Versailles. He defined bitcoin as “fast money” and explained the exclamation of retail investors as “gambler mentality”. Then he told us that we should not make fast money or gamble. We should make a stable career of our own. We should become the real master of life. We should grow up from struggle, not become crazy gamblers and sink in stimulation Is bitcoin a gamble? Is bitcoin easy to get? I believe that the vast majority of cryptocurrency practitioners, even speculative retail investors will not think so. Every industry will have a bonus period, and each dividend period will make a group of people rich. For example, those who went into the sea in the early days of reform and opening up, the trendsetters under the tide of the Internet, and the early investors of bitcoin. It is true that some people get huge returns easily through bitcoin by mistake, but most of the people who can obtain lasting benefits in bitcoin or cryptocurrency market have paid considerable cost and effort. Mr. lukewarm believes that he did not get his fortune from bitcoin, but most of the people who get it are working hard. In addition, the cryptocurrency industry represented by bitcoin has long been transformed from a small number of currency experiments into a financial technology industry with five internal organs. Although weak, it is full of vitality and potential. From bitcoin to Ethereum, from mining to trading, what you think is worthless air has long been the investment target of listed companies and wall street. No one can make money beyond their knowledge, and no one can easily make money. “Bitcoin is soaring, are you rich?” “I’m sorry, no, my cognition, learning ability and action ability need to be improved.”

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