Bitcoin’s U.S. $50000 failed to turn around to warn more about the risk of illegal activities of virtual currency

Source: bitcoin prices turned downward after Shanghai Securities Daily failed to hit the $50000 mark for the first time yesterday. During the Spring Festival, bitcoin gained a boom and then fell again. It rose more than 10% from about $44165 on February 10 to around $49000, with the highest intraday hit of $49593. On February 15, bitcoin prices fell to around $46900. Despite the volatility, bitcoin has led the global market since September 2020, with an increase of nearly 300%, far better than other similar assets. For months in a row, the price fluctuation in the future will increase or increase. During the Spring Festival, the global encrypted digital assets have experienced a correction after a surge. As of 12:00 Beijing time on February 15, bitcoin prices fell by more than 3% from above $49000 to around $46900, according to coindesk. Other encrypted digital assets also fell to varying degrees. Ethereum fell by more than 6%, letcoin by more than 10% and Rippon by nearly 13%. Since September last year, bitcoin prices have continued to rise, breaking through US $10000 and US $20000 successively, and even more than US $49000 during the Spring Festival in 2021, which is far better than the global risk market and other major assets. “Bitcoin’s surge in the past few months is closely related to the” big water “of mainstream central banks. But looking forward to the future, the large-scale promotion of vaccines, inventory replenishment and fiscal stimulus will accelerate the economic recovery in the United States and Europe. In the process of economic recovery, the rise of oil price and other factors may make inflation expectations rise sharply around the second quarter, raising the exit expectation of mainstream central bank policies. ” Zhao Wei, an analyst with open source securities, said that bitcoin price fluctuations may increase in the future. Winning more giant’s attention has contributed to the bitcoin market. Financial institutions and multinational giants have successively entered the crypto digital assets market, which is the direct driving force of this round of bitcoin’s rise. According to a recent report released by Tesla in the US Securities and Exchange Commission (SEC), the company launched a more flexible investment strategy in January 2021, aiming to enrich asset allocation and maximize idle cash yield. It is an important part of this strategy to invest some idle funds in specific reserve assets such as digital currency, gold bars and tradable gold funds. Within the framework of this strategy, Tesla has invested $1.5 billion in bitcoin, and it is expected to invest and hold digital currency assets in the long term. Tesla also said it plans to accept customers using bitcoin to buy related products in the near future, making Tesla the first large car manufacturer to accept bitcoin payments. Tesla and Musk’s admiration for digital currency directly ignited the carnival of bitcoin price, but doubts soon came: whether the bitcoin investment is in compliance with the regulations; whether this investment is just a “shocking bet” “Unless the company’s business model is a hedge fund that invests in digital currencies, it shouldn’t be so speculative in bitcoin.” Some observers pointed out. In addition, encrypted digital assets such as bitcoin continue to “invade” the traditional financial industry. Last week, MasterCard, a global payment company, announced on its official website that it was preparing for cryptocurrency as a payment method, saying it was to meet the payment needs of customers and businesses, but it did not constitute a proposal for currency use. According to a recent news release by the news agency, counter point global of Morgan Stanley is studying whether bitcoin is suitable for its investors. Bank of New York Mellon also announced recently that it will act as an agent for clients in custody and transfer of bitcoin and other cryptocurrencies. The bank has discussed with customers the way of “recording” digital currency. Bank of New York Mellon said that the same mechanism could be used to manage digital assets and other traditional assets, and the platform for this purpose has already taken shape. “Digital assets are becoming part of the mainstream,” Canada has approved the launch of the world’s first bitcoin Exchange Traded Fund (ETF). PayPal, the global digital payment platform, announced last year that it will allow users to use cryptocurrency to shop in nearly 26 million merchants on its network from this year. The digital cryptocurrencies that initially supported online settlement and payment included bitcoin (BTC), Ethereum (ETH), bitcoin cash (BCH) and letcoin (LTC). The hot bitcoin market is giving birth to all kinds of speculation, and China’s regulatory authorities are releasing relevant risk tips. Shenzhen local financial supervision and Administration Bureau issued a risk warning on further preventing illegal activities of “virtual currency” at the end of January. Recently, with the rising prices of virtual currency such as bitcoin and Ethereum, the speculation of virtual currency has increased. Some illegal elements carry out illegal activities of virtual currency under the banner of “virtual currency” and “digital currency”. For example, it provides publicity and drainage for the virtual currency projects registered abroad, and lures investors to participate. The leading group office of Shenzhen Internet financial risk special rectification work continued to clean up and rectify the above-mentioned illegal activities, and dealt with them seriously by means of on-site interview, administrative investigation and criminal crackdown. It is hoped that the majority of investors will strengthen the prevention of the above-mentioned illegal activities, report relevant illegal clues in time, and be cautious of being deceived. The local financial supervision and Administration Bureau of Henan Province issued a similar notice on February 5, saying that no organization or individual may illegally engage in token issuance financing activities; any so-called token financing trading platform shall not engage in the exchange business between legal tender and token, “virtual currency”, and shall not buy or sell tokens or “virtual currency” as central counterparties “Virtual currency” provides pricing, information intermediary and other services; financial institutions and non bank payment institutions are not allowed to carry out business related to token issuance financing transactions. At the same time, the debate about bitcoin itself continues. Nassim Nicholas Taleb, author of black swan, said on his personal twitter that the volatility of a currency should never exceed what you buy and sell with it. People can’t price goods in cryptocurrency. Sun Yan, an investment strategist at Standard Chartered Bank, believes that bitcoin’s current technology core can not be used as a digital currency to support the rapidly changing global trade demand. On the contrary, due to the decentralized characteristics of bitcoin network, bitcoin cross-border transactions lack of unified and effective supervision, and are easy to become tools of money laundering, terrorist financing, network blackmail and other crimes. Editor: Yan Jian

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