Bitcoin is on the threshold of $30000! Over the past 10 years, the value has increased by more than 12.4 million times

“Only Maotai and bitcoin can fight inflation.”. That’s right. What you are familiar with is bitcoin, a virtual digital currency that has no currency attribute in China and cannot be used in the market. On the evening of January 2, Beijing time, data from bitcoin website showed that the price of a bitcoin had exceeded 31000 US dollars, with a total market value of more than 580 billion US dollars, twice the market value of Coca Cola, a century old brand. To talk about bitcoin’s soaring, we have to explain briefly, what is bitcoin? Compared with common legal tender, bitcoin is a kind of virtual digital currency, which is calculated by a large number of computers around the world according to certain rules, and then randomly selected one computer every 10 minutes to generate it. In other words, anyone could be involved in bitcoin. But the rate of bitcoin production was fixed until it reached the 21 million upper limit in 2140. Bitcoin was born on January 3, 2009. At this time, this virtual digital currency is still the “toy” of a few programmers. Until May 21, 2010, a programmer in Florida, USA, bought a $25 pizza coupon with 10000 bitcoins, and set a price for bitcoin for the first time, that is, a bitcoin costs $0.0025. In February 2011, as the price reached $1, bitcoin began to attract people’s attention, and then began to get hot speculation. From 2011 to 2020, bitcoin experienced two rounds of big price fluctuations, but since December 2020, the price of bitcoin ushered in a short “bull market”, breaking through eight integer levels from 21000 to 28000 US dollars in 11 days. At the beginning of 2021, the momentum of this boom has not stopped. As of 10:05 p.m. on January 2, 2021, according to the data from bitcoin website, the price of a bitcoin has exceeded 31000 US dollars, with a total market value of more than 580 billion US dollars. What is the concept? In terms of the price of a single piece, the value of bitcoin has increased by more than 12.4 million times in 10 years. In terms of the total market value, it is 1.2 trillion yuan higher than Maotai, the “king of market value” of a shares, and twice that of Coca Cola, a century old brand. As of December 31, 2020, the total market value of Maotai is RMB 2.51 trillion, and that of Coca Cola is US $235.7 billion. The God of stock, Warren Buffet, once bombarded bitcoin as an illusion, but it did not affect the popularity of bitcoin. For this round of soaring prices, analysts generally believe that in addition to the impact of the epidemic, the main reason is the active admission of large institutional investors. It is understood that fidelity investment, a global head fund company, issued a report in October 2020, suggesting that investors hold 5% of the total amount of their portfolio; PayPal, an online payment giant with more than 300 million users, has bought a large number of bitcoin, and announced in November 2020 that it will provide bitcoin trading services to eligible US customers; DBS of Singapore has launched a ratio of institutional investors Bitcoin and other digital asset trading services; MicroStrategy, a US listed company and business intelligence software provider, officially takes bitcoin investment as one of the company’s businesses, and currently holds more than $1.1 billion of bitcoin; the total scale of digital asset management of gray trust, a well-known digital asset trust, is close to us $20 billion. The decrease of circulation supply in the market has led to the continuous rise of bitcoin price. According to bitcoin’s data, bitcoin’s 24-hour trading volume was close to 23000, with a 24-hour increase of 6.88%. Whenever the price of an asset soars, there will always be people asking whether it is possible to enter and follow suit? In addition to looking at the price, we have to pay attention to one point: regulatory policy. As early as 2013, the people’s Bank of China, the Ministry of industry and information technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission jointly issued a notice on preventing the risk of bitcoin, which clearly pointed out that “bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, can not and should not be used as currency in the market”, “all financial institutions and Payment institutions are not allowed to develop bitcoin Related business “. In the early morning of January 2, it was also reported that “old B network” bittrex would be removed from the shelves of XmR, Zec and dash at 7:00 on January 16, Beijing time, in order to deal with the regulation. At the end of 2020, Meng Xiaoni, CEO of bit deer, said that bitcoin price was volatile, and participants should stay away from leverage and contracts, avoid chasing up and killing down and frequent short-term trading. “After all, it is a small number of people who can really win the market.”. Source: Beijing daily client | reporter Zhao Yingying process editor: u008

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