Knife horse Bitcoin has gone crazy again, and the $50000 mark has been washed away. The rise of bitcoin has something to do with the “water” of central banks, as well as with Tesla’s musk. The leader of new energy vehicles, the promotion of bitcoin indirectly helped bitcoin soar. Musk has repeatedly expressed his support for bitcoin on twitter, and every public support will lead to the rise of bitcoin. He took bitcoin to the highest level on his own. 1. There is a reason for musk to constantly promote bitcoin, because Tesla’s investment in bitcoin is not poor. According to the document submitted to the securities and Exchange Commission (SEC) recently, Tesla has invested $1.5 billion in bitcoin. More importantly, Tesla said it might acquire and hold digital assets for a long time and expected to accept bitcoin as a payment method in the near future. That is to say, bitcoin can be used to pay for Tesla’s model series cars in the future. According to the current price of bitcoin, a bitcoin can buy a model 3, and it is rich. After Musk’s frequent support for bitcoin, bitcoin will always come out of a wave of upward market. Of course, it would be a bit too optimistic if only Tesla could boost bitcoin so much. In fact, in addition to Tesla and musk, it is the continued involvement of financial institutions and multinational giants behind the coin that has a boosting effect. It is reported that financial institutions and multinational giants have successively entered the bureau to encrypt digital assets, which is the direct driver of the current round of bitcoin’s rise. It is worth noting that Musk’s frequent voice has also been questioned by the market, which has a great guiding effect on the “bubble” of the special currency. 2. MasterCard and paypal also began to support bitcoin. The popularity of bitcoin also stimulated the banking industry to try to change. It is reported that MasterCard, a global payment company, announced on its official website that it is preparing for cryptocurrency as a payment method, saying that this is to meet the payment needs of customers and businesses, but it does not constitute a proposal for currency use. Moreover, 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. The move means that digital assets are becoming part of the mainstream. Canada has approved the launch of the world’s first bitcoin Exchange Traded Fund (ETF). What’s more, PayPal has also announced that it will allow users to use cryptocurrency to shop with nearly 26 million merchants on its network. The digital cryptocurrencies that initially support online settlement and payment include bitcoin (BTC), Ethereum (ETH), bitcoin cash (BCH) and letcoin (LTC). In addition to PayPal, bitpay, the world’s largest blockchain payment service provider, said on February 12 that Apple pay would support payment in cryptocurrencies such as bitcoin. Meanwhile, bitpay also announced plans to increase support for Google pay and Samsung pay by the end of March. 3. The volatility is increasing, and the number of open positions is also increasing. Although the rise of bitcoin is very hot, the fluctuation is also very big, and the users who use leverage investment are very easy to burst their positions in the huge fluctuations. We are concerned that, on February 15, only one day, more than 250000 people of the bitcoin contract broke out in 24 hours, with a total amount of 1.581 billion US dollars, about 10.122 billion yuan. The sharp rise in the number of people who broke positions in one day is because bitcoin fluctuates violently in a single day, which causes heavy losses to many investors who use leveraged funds to hold currency. Meanwhile, Morgan Stanley’s investment arm is considering adding bitcoin to its list of potential investments. It is reported that counterpoint global, a unit of Morgan Stanley Investment Management, is currently studying whether bitcoin is suitable for its investors. According to the latest data of assetdash, the total market value of bitcoin has surpassed Tesla by more than $890 billion, ranking the seventh in the world. The market value of bitcoin is close to Tencent. It can be seen that bitcoin has a great influence on the market. Interestingly, Mr. Sun also said that bitcoin would replace gold and increase its unit price to $100000 by 2025. Analysts at Citibank believe that the unit price of bitcoin is expected to rise to 318000 US dollars in 2021. However, Bill Gates and Warren Buffet all think bitcoin is worthless. 4. What is the risk of bitcoin? The new US Treasury Secretary, Yellen, has pointed out that bitcoin is a “highly speculative asset”. Analysts also warned 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, which determines that bitcoin price volatility is inevitable. Some people think that bitcoin began to soar in 2020, to a large extent, because of the outbreak of the epidemic, which caused a major impact on the global economy, GDP growth showed the largest decline since the Second World War, international financial risks rose sharply, and investors’ risk aversion spread. In the epidemic situation, many governments have to adopt loose monetary policies, and bitcoin has certain anti inflation ability, which makes it an excellent choice for investors to hedge against the depreciation of the US dollar. In a sense, bitcoin and gold have similarities. Bitcoin is not issued by any country, but a virtual currency determined by a set of algorithms. Its quantity is absolutely limited. Especially after two times of halving, the current mining efficiency is very poor. Under such circumstances, the demand is clear and the supply is limited, which will naturally drive bitcoin into a kind of safe haven asset. In the current economic situation, bitcoin can provide the value guarantee required by safe assets, which is the important source of its current price surge. However, with the intervention of large institutions, the market is full of too much predictability. “Bosha” has reached an extremely irrational stage. Moreover, the market concentration level of bitcoin itself is relatively high, and most bitcoin are controlled by a few accounts. In a sense, bitcoin has a very clear property of being in a business. Therefore, naturally, the market price volatility of bitcoin itself will be very large, and the risk is also increasing.