Bitcoin fell behind, hidden what important information?

Bitcoin after the crash, there are a lot of people in it in the next as cheerful as a lark, to celebrate the upcoming round of bull market.

However, in the bear market has been difficult to walk the leek, can really come to counter attack, then embarked on The Freedom Trail wealth opportunities?

The market turmoil, after a crash

We from the market information, its already began to become scrap metal, hot search frequent “bitcoin crash”, this is more like a bubble burst danger signal at any time.

The fear index soared, and people are still hesitant, like hunters, or stud.

From 2011 to 2018, bitcoin is not the first time plummeted, said early into the Bureau, has been a dream come true, to achieve wealth free. This leads to late to join the brothers, always waiting for the opportunity.

Therefore, every fall, in the eyes of many investors, has formed a kind of ingrained impression. Whether small retail investors, or investment bigwigs have predicted: “the bull market is coming”!

We can’t deny that the bitcoin price really great fluctuation.

At the end of 2013, the central bank and other five ministries jointly issued the “notice” on guard against the risk of bitcoin, bitcoin fell 35%, to 2015, bitcoin is dropped to $200. Only a year and a half, fell more than 80%.

From the beginning of the second half of 2015, to 2016, once the annual increase of more than 260%, by 2017, it is a record of more than $20 thousand highs. This year, there has always been a bear market status. However, with the recent BCH bifurcation, the market there is no small wave of unrest. Especially since November, not too optimistic.

According to reports, around 5 am on November 25th, bitcoin began a frenzied dive. One day time successive broken 4200 and 4100, 4000, 3900, 3800, 3700, 3600, 3500 mark.

As of 25 PM Beijing time 18:24, bitcoin fell below $3500 mark, 24 hours or 18.65%, is a new low since August 2017.

Bitcoin high distance ten days ago has dropped by about 50%, from the highest point of bitcoin at the end of last year fell more than 80%.

This circle is so, some people are happy people worry, there are people calm hoarding bitcoins, walk away, waiting for the return. This roller coaster market, old drivers, you sit?

Two, how to look at the big bear market?

However, the most exciting coins or circle those bosses talk, this seems to be the most valuable investment advice.

For example, Dfund founder Zhao Dong micro-blog said: “I expected before the price range to the bottom, where? I remember in 2013, bitcoin rose to 8000 yuan, many people said that if fell to 2000 to sell hunters bitcoin, finally I just saw someone selling 2000 bitcoin to buy a house.”

Li Xiaolai in November 25th two bursts of micro-blog, one of micro-blog “, he said: 2019-2020 the most meaningful thing may be a child, born out of the bull market is born out of bear children; bear are expert.

Even the Xinhua news agency also published a paper entitled “bitcoin fell sharply” blockchain bubble? “The special. And summarize the bitcoin crash is the result of joint efforts of various factors.

First of all, the large block chain project there is a serious bubble, in block chain infrastructure are not perfect, the market is expected to continue to push practitioners highly unrealistic, eventually encounter real combat, resulting in the continual loss of market confidence;

Secondly, the bitcoin market is due to the capital market, and the volume is relatively small, the global digital currency market but also a listed Internet giant volume, with large cash users zapan, also easy to cause sharp fluctuations in currency price;

Third, is the recent war industry, also shaken the confidence of the people in the objective, makes some people panic and vote with their feet, due to market volatility.

Some people think that there is going to be cool?

It seems that this time bitcoin plummeted, but is a discussion of some public opinion, and profound consideration on the market. What bitcoin plummeted exposed to what information?

Three, the secret behind

For the majority of fans bitcoin investment is concerned, they are more like a living in the real world, waiting for the fairy tale of the person. What bitcoin in the future will not have value, this is an unknown, in recent years, prices plummeted in the market, its price depends largely on the policy and regulation.

1. we do not really need bitcoin?

We first discuss a problem in our life, do not really need bitcoin? From the beginning of its birth, it is mainly used in the financial system, which is used for payment and cross-border transfers.

It was a renowned economist Robert Mondale, he once said: if a number of regional economies in different ways to cope with external shocks, then they should have their own currency, and adopt the floating exchange rate. These measures can act as a buffer, contribute to the different parts of the economy remain stable.

The theory of how to understand it? We give a simple example, if now the world are beginning to use bitcoin, then you A in the country with 10 bitcoin to buy a hamburger in country B is the same price to buy a hamburger. This means that a global monetary liquidity, only have a common currency.

When it comes to economic turmoil, the whole structure of the financial system will be destroyed.

On the contrary, we now live in, you can get 10 yuan price to buy a hamburger, to other areas, will use the local currency to exchange, it is no longer 10 dollars. Under this economic framework helps to maintain economic stability in different regions.

Therefore, with the perspective of economics, bitcoin does not necessarily become a necessity of life. As the development of the market now, it is used for speculative investment, more than.

People more often, through it to create a bubble economy, a wealth of opportunities. The real estate bubble and to some extent, there is a difference between different approaches but equally satisfactory results, is the inherent assets, one is virtual assets.

This caused time in virtual digital assets under the supervision, there will be significant fluctuations. Some people expect it prices, some people in the bubble crisis control it.

2. a speculative bubble, what would be the value of the product? This morning, the securities times front page commentary: bitcoin virtual currency speculation plunge exposed Ponzi nature, and that all the virtual currency will return to its essence: zero.

Is it really in such a speculative bubble, the product does not have any value? Yes, it is closely associated with bitcoin blockchain.

Why is the product of value chain that block? This technically speaking, is to upgrade the conversion to the value of the Internet Internet information technology, from the technical advantages of speaking, can be widely applied to our life, to solve practical problems and improve the quality of life.

Many people questioned the blockchain technology at the same time, there are a lot of projects run away muddied the market. However, the speculative bubble with bitcoin, for those who really develop technology people, experienced a period of development, there must be a result of.

So, bitcoin and block chain although they are closely related, but in the future development, they still can not be confused.

In this era of technological innovation, we should not believe that anything is possible. Not willing to wait for too long.

(author: block chain chain content from the blue ocean, have an open platform content “popular”; this paper represents the views of the authors and do not represent the official position of the chain too)

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