Deep frying! Bitcoin has just broken through the $30000 mark, and 100 yuan has made 1.2 billion! Netizen: witness history again

The second day of 2021 witnessed history again! Bitstamp platform shows that bitcoin stands at the mark of $30000 for the first time in the history of bitcoin, with a total market value of more than 560 billion US dollars. Since the birth of bitcoin in 2009, its first price is about $0.0025 corresponding to the purchase in 2010. The price increase of bitcoin since its birth has exceeded 12 million times! Bitcoin broke through the $30000 mark and set a new record. On the second day of the new year, bitcoin broke the 10000 dollar mark again. On January 2, 2021, the price of bitcoin stood at $30000. The total market value is more than 550 billion US dollars. Subsequently, bitcoin continued to strengthen, rising 6% in the day, breaking $31000 / piece, continuing to record high. What is the concept of $30000 bitcoin? So, on December 16, after bitcoin stood at $20000 for the first time, if it was bought on the same day, the return would be as high as 50% in only half a month! If you bought it at more than $7000 in early 2020, the revenue is now over 300%! On January 3, 2009, Nakamoto excavated the first batch of bitcoins from a small server in Helsinki, Finland. With the emergence of these 50 bitcoins, bitcoin was officially born. Since its birth in 2009, the price of bitcoin for the first time is about US $0.0025 corresponding to the purchase in 2010. By the end of January 2, 2021, the price of bitcoin has increased by a record 12 million times! In other words, 61.3 bitcoins could be purchased with an investment of 1 yuan. Now the value of the position is about 12 million yuan. If you had invested 100 yuan, you would have made more than 1.2 billion yuan! At present, the total market value of bitcoin is $560 billion, while the latest market value of Berkshire of Warren Buffett is only $543.7 billion. It is equivalent to the market value of 1.5 Maotai liquor. Why is bitcoin soaring? According to the Research Report of CICC, the price of bitcoin has risen from $7200 at the end of 2019 to $27084 (up to 2020 / 12 / 28), up nearly three times. It has become the asset class with the highest increase since the beginning of the year, and even exceeds the faamng technology giant index. In addition to the impact of global liquidity easing, the analysis shows that the financial innovation of financial institutions represented by PayPal, Robin Hood and grayscale in broadening the channels of digital assets in the past year is the structural reason behind the nearly tripled rise of currency price in the past year. The short-term currency price may be driven by liquidity and the inflow and outflow of speculative funds. However, in the long run, the continuous expansion of the traditional investor base is conducive to the stable rise of the price of digital assets such as bitcoin. Chart: performance of major asset classes since the beginning of the year Source: blog, CICC research department note: data as of December 28, 2020 chart: bitcoin price and average daily trading volume since January 2014 In addition, the regulatory policies of digital assets are increasingly clear, and the new regulations of Hong Kong and Singapore are expected to promote the rapid development of compliance exchanges. Over the past year, the group of twenty (G20) has led the development of a regulatory framework for the GSC, represented by Libra, to guard against financial risks. The Hong Kong Securities Regulatory Commission of China formulated the regulatory rules for licensed asset management enterprises investing in virtual assets in 2019, and issued the first encrypted asset exchange license (No.1 (securities trading) and No.7 (providing automated trading services) to OSL in December 2020. Singapore enacted the payment act, which laid the foundation for the development of digital asset related financial services such as exchanges, asset management companies and OTC in Singapore. According to media reports, even the insiders of the currency circle have not denied that the sharp rise of bitcoin has been a big bubble. However, driven by the global liquidity, bitcoin has become a “rigid bubble”. However, compared with three years ago, this time is a little different. During the new crown pneumonia pandemic, as the Federal Reserve cut interest rates to near zero (and is expected to remain at this level for the next few years), investors have invested heavily in bitcoin and other cryptocurrencies in pursuit of higher returns. At the same time, the extremely loose monetary policy introduced by the European and American central banks has pushed up inflation expectations in the financial market, and bitcoin is regarded as one of the best tools to hedge against inflation, which is one of the reasons why investors rush into bitcoin. Goldman Sachs has previously pointed out that bitcoin is a hedge against inflation and can coexist with gold. If the last wave of soaring market is due to a large number of retail investors with a gambling mentality rushed into the market, promoting the currency price, then the market this time largely benefited from the entry of institutions. Generally speaking, when the risk is controllable, the institutions will join, and the participation of institutions provides sufficient funds and improves the future income expectation. First finance and economics once reported that William, chief researcher of okex research, said, “it may be different from the speculation or speculation that you think. Speculation and speculation do exist, but not the main reason. The direct reason is the high net worth and the admission of institutional investors. Since the second half of 2020, institutions such as MassMutual life insurance company and MicroStrategy, a business analysis company, have bought bitcoin; while PayPal, an online payment giant, and DBS Bank, the largest commercial bank in Singapore, have announced that they will launch cryptocurrency payment services. At present, more than $6.9 billion of bitcoin is held by listed companies. ” “The liquidity crisis is coming,” said Denny Scott, chief executive of coin corner, the UK exchange, recently. He pointed out that the grayscale bitcoin trust (GBTC) continued to buy a lot of bitcoin, with GBTC buying more than 115000 bitcoin (about $2.5 billion at current prices) in the fourth quarter of 2020 alone. Coupled with institutional buyers such as hedge funds, mutual funds and now insurance companies, bitcoin is in short supply on the exchange. This can only be solved by raising prices. Scott minerd, chief investment officer of Guggenheim partners, told Bloomberg late last year that bitcoin’s current price is far below fair value and that the digital token should eventually climb to about $400000 a bitcoin, given its scarcity and the Fed’s “frantic printing of money.”. Last November, Guggenheim applied to retain 10 per cent of its $5.3bn macro Opportunities Fund, which invests only in cryptocurrencies. “Our basic research shows that bitcoin should be worth around $400000,” he said. “It’s based on scarcity and relative valuations, such as gold as a percentage of GDP. So you know, bitcoin actually has a lot of the attributes of gold, and it has extraordinary value in terms of trading. ” Netizens were stunned This article is from China Fund News

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