Author Tao Jun Levin.
The source, Levin road block chain (laidaoblockchain)
Since December 20th, the Fed announced interest rate hike of 25 basis points to 2.25% to 2.5% level, this is the fourth time since 2018 the Fed rate hike, plus the United States ZF closed expectations, technology stocks fell, stocks pressure fell down, the three major indexes are record lows for the year. The NASDAQ fell 8, the highest since 2017 early October closing low; the Dow fell 5, the highest since 2017 October closing low; the S & P 500 index fell 8, the highest since early September 2017 closing low.
The Fed announced interest rate hike, more than half of the national and global economies of central bank monetary policy update. Although the domestic central bank announced a few hours before the rate hike in the United States, announced the launch of TMLF, and the good news of the release of 100 billion yuan of funds, but did not interfere with the Shanghai and Shenzhen two, as of December 21st closing down, the Shanghai index has fallen 4, the stock index hit a 2500 points, is expected to hit a new low since 2015.
The global stock market slump, unexpectedly, bitcoin ushered in the 6 rose from $3200 in December 15th rose to near 20 days near $4200, or over 30%, other mainstream currency rose over 100%, in the global financial market unusually brisk.
Why in the global stock market downturn, and other digital currency bitcoin can be spared, and do contrarian rise?
The global stock market down, from the surface of the overall market slowdown or downward pressure. During the year the Federal Reserve to raise interest rates four times, the cumulative increase in interest rates will continue to increase the enterprise’s debt burden, this will lead to rising financing costs, will inevitably have a negative impact on corporate performance, and then affect the company’s share price; influence of trade war of the tariff increase, profits of listed companies earnings less than expected, leading to price decline……
From the nature of the market investors of enterprises and ZF trust and not expected, holds a pessimistic view of the future of listed companies. The lack of credit in the business environment, risk capital market fell to the ground, there will be insufficient investment enthusiasm, but also hindered the exchange value of due to the lack of trust. In the financial crisis budding circumstances, in accordance with past practice, when there is a crisis of confidence in the business environment, market funds will choose gold and silver and other precious metals for hedging, therefore, the recent gold and silver market performance is strong, but can not be ignored is the gold circulation is not so easy.
In addition to the safe haven of gold and silver, and one is from outside of the commercial trust assets, that is the other digital currency bitcoin which not only has the value of gold and silver deflation, even more than gold and silver trust, and is also convenient to transfer. The birth of bitcoin is set in 2008, the Fed launched quantitative easing policy to stimulate the economy is essentially printing money, people on the ability of ZF and Bank of economic management and the money supply that trust is at the lowest level, leading to the outbreak of the financial crisis.
The money can be sent from A to B and the need to go through the “third party” trust bank, this trust is based on the ZF’s credit endorsement, but bitcoin does not need any politician or organization to the center of the endorsement, the distributed peer-to-peer bitcoin means to achieve the network trusted. In a nutshell, is that everyone can download a bitcoin client transactions through the client, the transaction data distributed storage to each person’s computer or hard disk, this is to the center.
To solve the problem of distributed exchange of value free, this is the precondition of transaction, the most basic is to consider the transaction security problem, also is the trusted system. Which is a distributed system of destruction against external network. Related to the trading process safety should be taken into account to send, transmit, confirm the safety of transaction, the sender of their own, the encryption technology, only with the private key you can dominate the account balance, this is very simple; the transmission side, is now bitcoin mining, mining transaction data package for verification and confirmation of node to confirm the distribution and synchronization of transaction data, such transfers each other can receive bitcoins. It is worth noting that, at present, only the mining market has reached hundreds of billions of market distribution, verification node synchronization data over nine thousand.
At the same time, bitcoin transaction is distributed storage, not only can prevent fraud and fraud, is scheduled to be released this digital currency bitcoin also let the money supply growth rate can be predicted to reach 21 million, it is no longer growing, ensure the characteristics of the hedge against deflation, the central bank officials who love money to influence hyperinflation.
So, bitcoin has the property of deflation hedge, bitcoin network to solve the problem of trust, and Internet technology with convenient value transfer, but the current value of the circulation is basically based on the bitcoin itself, and rarely associated exchange of real assets, once the exchange can occur in large range and real assets. Bitcoin can serve as the world currency.
The reason, the independent market in the global stock market downturn, because the traditional centralized organization appeared trust issues, and other digital currency bitcoin is non trust. The long run, this kind of assets and practical center of the endorsement of the assets appreciation and depreciation is negatively correlated, now is not obvious mainly because other digital currency bitcoin trading volume is not big enough, this is the relative world, only for a country that is great, you know by the end of December 21st, the Shanghai stock market the trading volume of 104 billion 100 million RMB, and 24 hours of bitcoin trading volume of more than 150 billion RMB.
Since then the market hedge funds to seek the subject, and other digital currency bitcoin will not be taken into account and become the preferred?
If at the end of 2017, and other digital currency bitcoin bubble is too big, risky, traditional funds impossible into the market at that time. Now, after a year of bitcoin blockchain rose, the spring breeze blowing in the whole world, technology continue to explore many people found or trial and error, bitcoin is the greatest application block chain technology.
And in 2018 a year in the dissipation stage bubble, bitcoin is the highest point since the end of last year fell to $20 thousand now near $4000, down 80%. The bubble gradually dissipated, bitcoin acceptance with the spread of popularity has gradually been recognized by more and more people, this is the traditional capital allocation and other digital currency bitcoin opportunity. The bear market, bitcoin continued brisk performance, it will usher in the pursuit of capital, whether digital currency investment or digital currency investment on Application of landing scene.
At present, the Chicago stock exchange has been on-line bitcoin futures investment for investors, on the line after the fire bitcoin up to $20 thousand, the NASDAQ and the NYSE expected in the first quarter of 2019 on the line bitcoin futures, it is worth looking forward to. 2018 other digital currency bitcoin bubble away for a year, to coincide with the 2020 bitcoin production by half, to reduce the supply, it may indicate that other digital currency bitcoin 2019 will make a beautiful report.