2008, bitcoin is the mysterious people Nakamoto mentioned, then bitcoin turned out to break into people’s vision.
With bitcoin led many followers stride forward singing militant songs, incoming.
Bitcoin crazy speculation caused the attention of financial institutions, in looking at the end of last year in year, Goldman has warned: skyrocketing prices, will have to bitcoin bubble phase. At the same time, from the financial market perspective, digital currency also entered the bubble stage, which has exceeded the history of the famous Holland tulip bubble and the British South Sea bubble.
1689 to 1714, the British government because it owed 10 million pounds of debt, unable to bear the huge interest, the South Sea Co reached an agreement with the government, they have to get to South America and Pacific islands of the slave trade and fishing business. In exchange, willing to take 1000 million pounds of debt.
At the time of the South Sea Co trading business in 1718 years of British war with Spain cut off trade channel has been unprofitable because very difficult. They are exaggerating the fraud in the case and business prospects are optimistic about the outside world, to 1720, South Sea Co through bribery of government, launched in the South China Sea stock exchange Treasury plan to Congress, prompting the South Sea Co stock price greatly sought after, from the original early 1720 about 120 pounds more than the same year in July soared to 1000 pounds, the madness stock. However, many Bubbles Company appears on the market to fish in troubled waters, while at the same time, the South China Sea has risen a share. For the regulation of these fraudulent companies, Congress passed the “bubble bill” in 6 months, stocks boom waned, and the joint South Sea Co to trigger the price plunge, 9 month plunged back to 190 pounds below the level, many people lose everything, even the famous physicist Sir Newton lost money to leave.
The investment people finally found this to be an elaborate hoax, foreign investors sold shares of domestic investors have to follow up the South China Sea, South China Sea, the stock quickly plummeted, 9 month straight fell to 175 per share, 12 month fell to $124, 6 month decline of nearly 90%, the South China Sea stocks this bubble burst.
The South China Sea stock bubble burst the blow, let Britain in the next 100 years have been issued a shares.
The world financial center and economic center of Holland is the 17 century, wealth Everfount into Holland, let the rich batch of birth. The rich nobles began to pursue the enjoyment of life, ornamental and wear tulip society became the fashion trend.
As long as the speculators find opportunities to buy today, you can earn a lot of money tomorrow, began to take the opportunity to hype, high profits attracted from all sides by speculators with more and more people join the speculation, the price of tulips in just more than a month has risen several times, all the people were involved in speculation big money. Maybe someone would have realized that the price of tulips has completely deviated from the conventional value as a flower, but obtain the profits made many speculators lose control.
In the face of frenzied speculation, the Holland government had to take emergency measures at the same time, Turkey shipped by Tulip also arrived, tulip is no longer so rare, so the price collapse, tens of thousands of people who crash in the doomed eternally.
Holland tulip incident led indirectly as the financial center of Europe — the fall of Holland, this is the first time in the history of recorded financial bubble. This Holland economic trauma over ten years to recover.
In human history, the two famous financial bubble eventually to price collapse as a result, when most of the people to participate in speculation capital, also brought huge economic trauma.
Now the bitcoin is?
The collapse in the end bitcoin this year, according to the 25 number of exchange data show that the price of bitcoin in 25, has fallen below $4000, the current price of around $3700, equivalent to about 25 thousand yuan, has hit a historical record for the lowest since last year.
And one of the main reasons leading to the collapse of bitcoin is a digital currency hard bifurcation means bitcoin can be unlimited expansion, no longer scarce. Digital currency legal is supported by the government, which makes bitcoin how to compete? Once governments began to study the issue of digital currency legal, will cause sharp decline in the price of bitcoin, which seriously impact the fundamental bitcoin. From historical experience, the supply increase infinitely often become the bubble burst last needle. Bitcoin is a digital currency value of the largest and most famous, bitcoin in the peak when the price of $20 thousand, but I believe that many people don’t know much about bitcoin, you want to know, you can see “decrypt bitcoin”.
Bitcoin will eventually be eliminated obviously, such an outcome, but in the short term, it will still have the market risk and opportunity, money is always everywhere, you must remember that the investment risks, the market need to be cautious.