Bitcoin falling crypto currency “bubble” bottomed out?

Xinhua news agency, Beijing, June 11 26 as the world’s most famous and the most controversial encryption currency, bitcoin market this year after the worst week crash, 26 finally climb on the $4000 breath, but with the end of last year compared to 2 million high approximation, can be described as “hot and heavy day”.

Since mid November, bitcoin repeatedly refresh the lowest level since September 2017, driven by the crypto currency fell collective.

Analysts believe that bitcoin market slump could hit speculative individuals, but has little effect on the financial market, with serious bubble clearing, as well as supporting technology mature and the laws and regulations, but is conducive to block chain technology speculation from the “kidnapping”, really good development.

News facts

As of 11 26 April afternoon 3, bitcoin slightly recover the decline, back above $4000, $4150.

Since the end of last year to the first half of this year started skyrocketing prices, bitcoin prices this year has been for several months in the stable $6500 stalls.

But since November, bitcoin market can be used “fall” to describe, especially since the middle of more than ten consecutive trading day down. A number of digital currency exchange data show that bitcoin prices last week fell more than 25% this year to become the bitcoin market the worst performance in a week. 25, bitcoin intraday trading below $3500, its lowest level since August 2017.

In bitcoin decline driven by currency fell collective encryption, reboxetine currency (XRP), Ethernet (ETH) encryption currency currency last week fell more than 25%. According to statistics, the global crypto currency overall market capitalization of about $154 billion at present, has more than 1 months of this year more than 8000 dollars has shrunk by about 80%.

As the world’s very few allow bitcoin transactions for some goods and services in the country, the United States recently consecutive moves to strengthen encryption currency trading supervision. According to U.S. media reports, the U.S. Securities and Exchange Commission on November 16th the two companies cryptocurrencies punishment. The Justice Department is also on bitcoin soared last year are investigating price fixing behavior in the process of.

Depth analysis

The market rose “summer” like a thousand li a day seems to be yesterday, bitcoin why so soon suffered a “winter”?

Analysts pointed out that the current round of bitcoin market slump caused by multiple factors. First of all, bitcoin market there is a serious bubble has been the consensus of all walks of life, the market behavior of bitcoin itself is speculation, rather than investment, speculators buy up sell, especially large holders zapan behavior more easy to panic, causing the market turmoil. Second, when the global risk assets are “low tide” trend, stocks and other investment assets prices are significantly callback, not to mention the encrypted currency speculation assets.

Analysts also said, for fear of mainstream investors bitcoin market supervision and lack of market infrastructure is weak and seldom involved in this market, and this year bitcoin as payment currency but also the role of further declines in the global scope, so bitcoin plummeted may hit the individual investment, but has little effect on the global financial market.

Immediate comment

2008 years after the international financial crisis, bitcoin is emerged, wearing a glossy coat to the center etc.. Block chain technology is the underlying technology, technology to support bitcoin dependent, was given outside the highly anticipated.

However, the two cannot be confused. The soaring prices of bitcoin, can not turn a blind eye, let things drift; the huge potential of application of “blockchain” technology, can not beat him to death.

All speculators should understand: when there is bubble earning large quantities of gold each day, clearing day. The development of science and technology is to promote human progress, should not be “speculation” of kidnapping. With the mature technology and perfect supporting laws and regulations, to speculation and manipulation of scour off mighty wave crashing on a sandy shore, leaving the real benefit of the ideas and technologies of the future.

Background links

Bitcoin is the data encryption technology based on block chain. In 2008, someone to Nakamoto bitcoin net, put forward ideas on the internet. In 2009 the first batch of bitcoin appeared, and gradually sought after by the market. In May 22, 2010, someone with 10 thousand bitcoin successfully for the first time to buy two piece of pizza, then the price is equivalent to $41.

2017 is “bitcoin year, bitcoin prices from less than $1000 at the end of the year soared to a peak of nearly $20 thousand.

From a global perspective, only the market in the United States, Japan, bitcoin is allowed to trade goods and services, but also by the risk warning and supervision.

According to the relevant provisions of the central bank China, bitcoin is not issued by the monetary authorities do not have the law, such as monetary compensation of the mandatory attribute is a specific virtual goods, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market.

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Source: Maoming Evening News

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