Bitcoin presents a crazy scene, experts remind: be careful of risks

At 13:30 on December 28, bitcoin’s real-time price picture was captured from bitfan’s market. At the end of 2020, bitcoin staged a crazy scene. On December 27, the price of bitcoin broke through 28000 U.S. dollars, the highest market value in more than ten years. At noon on the 28th, as of the time of press release, the price of bitcoin was also above 27000 US dollars. In the context of global economic downturn caused by the global epidemic, why is bitcoin so soaring? Bitcoin was born in 2008. Initially, Nakamoto published a paper describing what he called “bitcoin” and its algorithm. In 2009, he released the first bitcoin software and officially launched the bitcoin financial system. In short, bitcoin is a kind of network virtual digital currency, which is generated by a large number of calculations according to specific algorithms. Bitcoin is based on blockchain technology, and the network system is composed of multiple distributed databases. Each database can confirm and record all transactions at the same time, and transaction changes can be “bookkept” by all users to ensure security. At the same time, due to the limited number of bitcoin generated by specific algorithm, there will be no problem of excessive issuance leading to inflation. Recently, bitcoin prices have continuously broken through the key integer level, showing a rapid upward trend, focusing on the blockchain industry research organization okex In an interview with Tianmu news reporter, William, the chief researcher of research, believed that the direct cause of this situation was the high net worth and the admission of institutional investors. “Since the second half of this year, institutions such as American insurance giant MassMutual life insurance company and business analysis company MicroStrategy have bought in succession, bringing prosperity to the bitcoin market.” Traditional institutions have bought bitcoin in large quantities. The underlying reason for this is the changes in the global macroeconomic situation this year. On the one hand, affected by the epidemic, the global economic recovery will slow down in the coming year; on the other hand, the European and American central banks have launched extremely loose monetary policies to push up inflation expectations in financial markets. “In a high inflation, low growth economy, in order to avoid economic damage and pursue higher returns, the need for investors to hoard cash has naturally evolved into the demand for gold and bitcoin,” William said Is this a good time for investors to enter? In the market, many views believe that there are more and more bulls in the bitcoin market, and the market continues to go up or even accelerate, which aggravates the risk. William also said that recently, a large number of investors have begun to pour into the cryptocurrency market, and the main investment force may undergo structural changes, which may shift from institutional investors to small and medium-sized investors. “The excitement and fanaticism of the market is further amplified, which may lead to big fluctuations in bitcoin prices. I hope that market investors remain rational and do not arbitrarily increase leverage.” “Do not reprint without permission”

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