Map / Beijing News Network
Recently, bitcoin dropping to $3500, the global virtual currency market collective reproduction sharp sell market in December compared to last year’s $850 billion vertex has shrunk more than 85%, the evaporation of $about 720000000000. This is not a new token evaporation market this year, if it is included, nearly a year’s time, the virtual currency market capitalisation of trillions of dollars, is equivalent to the global gold market capitalization.
About this time the virtual currency collapse, the most fundamental reason is I have repeatedly emphasized: bitcoin blockchain + +ICO is a gorgeous packaging Ponzi scheme, and will be broken.
It is also a major cause of the “broken”, a “broken”, I think the following points.
The first is bitcoin cash (BCH) hard bifurcation. In early August 1, 2017, due to the bitcoin expansion and anti expansion faction faction can not reach a unified bitcoin on forking out bitcoin cash; just 15 months later, in November 16, 2018, bitcoin cash was hard currency out of the bifurcation bifurcation, called Bitcoin SV. The market confidence hit a lot, which makes many people believe instant collapse of the virtual currency is becoming more and more fragile.
Plus this time bitcoin cash fork, a school with Bitcoin SV Bitcoin ABC (BCH) in order to compete for a bitcoin cash “orthodox” position, launched a “war force”.
This is a day of tens of millions of burn wars, in order to raise money to fight, take the lead in big brother Bitcoin SV sent the Macao the Cong (Australia, the Cong a posing in holding large bitcoin) threatened to hit $1000 bitcoin. The gods fight, kids suffer, even bitcoin $6000, $5000, $4000, was the “virtual currency market”.
The second is the United States government has recently strengthened the regulation of virtual currency, ICO. Because of the existence of false propaganda and fraud, many call a single plate, since the media were Medium and Twitter, the apple store cleaning multiple social platforms, while Facebook and Google earlier this year began on the virtual currency and ICO advertising ban.
It is because of sideways too long. Bitcoin as an example, from August to November this year, has been in the $6500 down sideways for 3 months. The disk will fall, which is a universal law in all financial markets, there is no real value for the support of the virtual currency market is more consistent with this logic.
Because most traders are like gamblers, holding overnight, financial freedom vision rushed in, the results go in after the first encounter is continued to fall in the first half of the second half of the year, and is up to several months sideways, nearly a year of suffering, and finally let the participants lost confidence and patience. This time, coincides with the bitcoin cash bifurcation fuse caused by the market crash, panic spread, so many people will no longer hold.
Finally, because of the depletion of funds inside. The virtual currency market since last December highs fell, lasted nearly a year long bear market, during which there have been new money misappropriating public, the new exchange opened to grab customers, as well as the capital game, emerge in an endless stream of MLM scam money, but the play is the stock of capital, almost no new incremental funding admission. While the old leek once was cut out, capital market is completely exhausted, no one answered the disk when the rebound, panic selling down, such market conditions do not fall to blame.
The above is mainly analyzed from the virtual currency market policy and technological level, the level of funding, from the fundamental point of view, it is more slovenly, as I have repeatedly stressed, bitcoin blockchain + +ICO is a gorgeous packaging Ponzi scheme, only is the matter of the bubble burst.
Chen Sijin (senior financial risk management consultant)
(Editor: Angie Chiu)