No one can understand bitcoin

Yi Qijun has a friend. About six or seven years ago, he gave up his building materials business, which he had been doing for many years, but it was not hot. He was brought into the bitcoin circle. At that time, he had to explain to everyone what bitcoin was and the principle of mining. When I met him at a party three years ago, he said he had saved more than 500 bitcoins. Today, his family immigrated to Canada, and from time to time he meets his circle of friends who issue bitcoin. According to bitinfocharts, in December 2020, more than 67000 people held bitcoin with a market value of more than $1 million. It took only 10 years from $0.0041 to $52224.95, and bitcoin was born in early 2009. On May 22, 2010, a programmer named Laszlo hanyecz bought two pizzas for 10000 bitcoins. At that time, the value of 10000 bitcoins was about $41, each worth about $0.0041. Who would have thought that bitcoin would move like a roller coaster in the next decade. From the original 0.0041 cents, up and down, today (February 18, 2021), it has soared to 52224.95 US dollars / piece. This can not help but make Yi Qijun think of a friend’s microblog ten years ago. At that time, a friend posted a micro blog and lamented that “the price of BTC is 9.9 yuan, and it has broken through the 10 yuan mark immediately.”. Now ten years later, today’s bitcoin is 320000 yuan. Who knows, what is he doing? It’s more than a little magical. Judging from the market situation of this year’s investment market, bitcoin will increase by more than 300% in 2020, rebound by more than 600% from the low in March, and the rate of return on investment is far higher than that of major asset classes in the world. By comparison, spot gold will rise by more than 20% in 2020 and Nasdaq index will rise by more than 40%. If hanyecz had known ten years ago that the two pizzas he had bought for 10000 bitcoin were worth 400 million dollars, God knows how much he would have collapsed? The future of bitcoin: there are different opinions, and no one can understand it. The crazy run of bitcoin in 2020 is jaw dropping and has attracted the attention of global capital markets. So what is driving bitcoin’s boom? First of all, the demand for risk aversion will rise under the image of the new epidemic situation in 2020. The second is the admission of high net worth and institutional investors. In addition to the past family financial institutions and wealthy investors, mainstream institutional players, such as insurance companies and pension funds, are also running in. The day before yesterday, Wang Xing, CEO of meituan, said that in theory Nakamoto is already the richest man in the world. Nakamoto is widely regarded as “the father of bitcoin”. It is understood that Wang bought bitcoin as early as 2013, when he said that “we must pay homage to this extraordinary imaginative creation with practical actions.” Over the next few years, he published several thoughts on bitcoin. There are plenty of people who like Wang Xing are optimistic about the continued rise of bitcoin. According to Morgan Creek digital assets, the price of bitcoin could reach $500000 by the end of 2030 and eventually reach $1m. Anthony pompliano, co-founder and partner of Morgan Creek digital assets, a cryptocurrency hedge fund, said bitcoin prices could reach $500000 by 2030 and could eventually reach $1m, but did not give a timetable. Although many institutions continue to be bullish after the bitcoin boom, others warn of the risks behind it, believing that its rise is unsustainable, and JP Morgan is one of them. JP Morgan believes that bitcoin’s current rally is still risky, although it is driven by institutional investors, but the participation of retail investors is also very high, and believes that there is not enough buying to maintain a high level of bitcoin. The biggest risk is that the liquidity impulse seen in the past few months has slowed down significantly from now on, according to panigirtzoglou. J.P. Morgan said the momentum to push bitcoin to a record high above $50000 was unsustainable unless bitcoin price volatility eased quickly. E-business observation believes that bitcoin’s market size is still too small to be manipulated; at the same time, countries around the world are likely to strengthen the supervision of cryptocurrency, and even declare bitcoin illegal. All these factors determine that bitcoin’s price fluctuation is inevitable. Although the rate of return on investment in the currency circle envies others, the opposite of “getting rich overnight” is the “evaporation” of assets overnight. –END–

Leave a Reply

Your email address will not be published. Required fields are marked *