Crazy! Bitcoin is close to 30000 US dollars, 11 million times in 10 years, how can tens of thousands of people burst into big losses

Source: China Fortune Group Author: Tian Xinxin compared with special currency, 2020 can be described as a “feast of capital”, which is still going on. Bitcoin prices continue to rise on January 1, 2021, after bitcoin hit a record high of $29000 on December 31. The total market value of bitcoin is more than 540 billion US dollars, equivalent to more than 3.5 trillion yuan of RMB, which is 1 trillion yuan higher than the total market value of Maotai in Guizhou Province, and also exceeds the “God of stocks” of Berkshire Hathaway. More than 11 million yuan of investment has been made. Half a year ago, bitcoin was still $10000, and now it has exceeded $29000, making the coin circle revel. China Fortune has noticed that the price of bitcoin has risen by 300% in 2020. If we lengthen the time line, the price increase of bitcoin has exceeded a record 11 million times in 10 years as of January 1, 2021, based on the US $0.0025 corresponding to the first price of bitcoin in 2010 after its birth in 2009. In other words, the original investment of 1 yuan has made more than 11 million yuan. David grider, chief digital strategist at fundstrat, a New York based investment firm, said the recent surge was mainly due to institutions and companies buying more bitcoin as assets and the latest round of US stimulus plan boosted retail demand. William Wilhelm, chief researcher of okex research, a veteran research institution in the industry, also said that the direct reason for the rise in bitcoin was the high net worth and the admission of institutional investors. From the current market situation, bitcoin is gradually changing from “alternative investment” to “digital gold”. It can be said that this round of bitcoin bull market is the product of high inflation expectations. Daisy, a senior analyst at fire currency Research Institute, said that the worsening of the epidemic situation has intensified the expectation of global economic recession, and global inflation has become an irresistible trend. The demand for bitcoin has thus increased further. However, William also pointed out that with the gradual recovery of the economy, monetary policy will gradually change from loose to moderate tightening after the vaccine is launched and the epidemic situation is gradually alleviated. At that time, institutional investors are likely to sell bitcoin. The “red line” of regulation can’t be touched. Interestingly, the topic of “bitcoin buying a car” accidentally swipes the screen at the same time that the price of bitcoin attracts attention. On the morning of December 31, 2020, @ GAC Weilai announced on its official microblog that it would become the first auto enterprise in China to accept bitcoin payment for car purchase. This operation immediately triggered a heated discussion among netizens. Many netizens directly commented that “this involves illegal activities” and questioned whether the company wanted to “launder money”. Finally, GAC Weilai deleted the microblog and issued an apology statement. Although there have been some cases of digital currency payment abroad, the notice on prevention of bitcoin risk issued by the people’s Bank of China and other five ministries and commissions as early as 2013 clearly pointed out that: in nature, bitcoin is a specific virtual commodity, does not have the same legal status as currency, and cannot and should not be used as currency in the market. In addition to the red line of supervision, the amount of money and the number of people who suffer from the explosion of bitcoin are also shocking. According to the real-time statistics of bitcoin, in the last 24 hours, a total of 21804 people have burst their positions, and the amount of money in various currencies of the whole network has reached 186 million US dollars (about 1.209 billion yuan), of which, the amount of bitcoin contract positions is 144 million US dollars (about 936 million yuan). On December 29, 2020, the number of people who broke positions was as high as 60994, with the amount of 704 million US dollars (about RMB 4.582 billion yuan) in all currencies of the network, and the amount of RMB 585 million yuan (about RMB 3.814 billion yuan) in bitcoin contracts. In addition, there is a sharp rise in the price, there is a sharp fall. Looking back at the latest sharp fall in bitcoin, investors are thrilled. On November 26, 2020, bitcoin suffered a flash crash, once falling nearly $3000, or more than 14%, the largest drop since August last year. According to statistics, bitcoin has experienced 11 sharp falls since 2010. As for the stock explosion, an industry insider pointed out that virtual currency such as bitcoin itself belongs to speculative products with high risk attributes. Recently, bitcoin has gone to a high price and the market has attracted a number of irrational investors, which has led to this phenomenon. What is the future trend of bitcoin? As for the future trend of bitcoin, there is a big divergence of views in the market. There is no doubt that the vision of the holders of this cryptocurrency is $30000. Antoni trenchev, co-founder and managing partner of NEXO, a cryptocurrency financial institution, said, “we have a new watershed, and the next target integer level is $30000, which is the beginning of a new chapter in bitcoin.” Tim Draper, a venture capitalist and founder of Dfj, said bitcoin would reach 10 times its current price by the end of 2022 or early 2023. Under the big rise, there are also analysts suggesting risks, investors should be more cautious about investment. “First of all, bitcoin is not a currency, it is not a unit of account, it is not a means of payment, it is not a stable store of value. Bitcoin is not even an asset. ” He stressed that the growth of bitcoin is speculative and self fulfilling, and this growth is completely driven by the manipulation of market tycoons. Bitcoin is close to the bursting of the giant bubble. (risk tips: the above information is for reference only and does not constitute specific investment suggestions. There are risks in the currency circle, so investment should be cautious.)

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