1, the new technology must fall, find a practical application, and then slowly increase to a plateau. The development of bitcoin still cannot do without the law.
2, personal judgment, bitcoin is now at the bottom of the valley.
3, the bitcoin crash, there is relationship between war and bifurcation legend online.
4, the bitcoin fell to the mining industry, Chinese huge blow.
5, block chain technology and digital currency market are two concepts, we can not put in bath children pour out.
6, although the digital currency bubble, but the application block chain is an important trend in the next ten years.
7, can be used within one year or within a year and a half block chain could find the actual, and digital currency bitcoin market rally will continue.
Hello, here is the “financial observers”, I am Lv Benfu, from the University’s School of economics and Management Sciences Chinese. Today we discuss the topic: why bitcoin slump?
In November 25th, according to the Bitstamp platform, bitcoin prices fell below $3700, the lowest intraday fell to $3474.70, to close at $3629, refresh the lowest since September 24, 2017. Recently rebounded slightly above $4000. Since 2018, bitcoin prices fell, 11 month 14 day, bitcoin prices from $6300 plunged to $5500, 11 month 20 day, bitcoin staged “diving”, the price fell below $4100, more than 16%, the lowest level since the last 10 months. Bitcoin crash, also led to other encryption currency fell sharply. CoinMarketCap data show that within 10 days of bitcoin market capitalization fell from $1104.94 to $759.19 billion, the evaporation of 345.75 billion dollars, equivalent to approximately RMB 2400 billion yuan. At present, the market value has dropped to a crypto currency of about 1500 million dollars, and the beginning of this year 8500 billion compared to the scale of serious shrink.
This figure is soaring when the rise of bitcoin figure. From 2017 years to 2017 years 1 months 9 months, you see, have been rising, up to now, has risen to 2017 years 9 months 14, to the peak. This year from 2018 years 9 months, has been stable at around 6000 about $. But to 11 months, you see, a big curve decline, fell sharply? The lowest to 3634 dollars, that is almost cut in half.
Cut bitcoin, can be out of the question, why? A lot of people in the past from the money, there are a lot of people is a novice, wanted to make a money, now have encountered problems.
There are some people outside of the circle have expressed their views. It also said: now this block chain bitcoin everyone wants to step on one foot, although I do not understand the past, I now, you are not making money? Now you put, so everyone has this effect? I see other people joke, of course there are some leek did cut too hard, even some that have a heart jumping. The decline in a straight line? And a vertical line down, really fast.
Why is the original so prosperous digital currency market, now how suddenly said not to do so? The reason behind where?
Any application of a new technology, has a life cycle curve. At the beginning the concept of speculation, and do not understand people who have come in, the block chain has a version called all in, all in, I do. On the formation of the so-called air this time curve to the highest point, the highest point of what people have, nishajuxia. This is the so-called bubble. The second half of the year is 2017, bitcoin blockchain period or outlet.
The new technology to the second characteristics, after the bubble too extreme, the air after extreme, not all * are in the air, the wind fell fell down. So now, to this year went to the second stages of the bottom curve.
There are many such phenomenon in the history, such as the Internet, in 2000 there fell. Many of the new concept of technology later, when there is a trough. Then we say why the bottom? New concept, new technology must fall, find a practical application, then slowly return to the three stage, slowly increase to a plateau. So in fact, the development of bitcoin still cannot do without the law.
My personal judgment, it is now at the bottom of the valley.
In two, there is the occasional factors? Also, for example, bitcoin this fall and what? There is relationship between the war and the so-called legend online bifurcation.
At present, bitcoin at around $4000, has fallen below the cost price. Compared to the highest point of 19 thousand and 666 dollars (about 150 thousand yuan) fell more than 76%, has already cut. Some netizens said that 100 thousand yuan investment in their own currency price peak, now only 2000 yuan. From 2011 to 2018, bitcoin from $3 up to December 15, 2017 was the highest intraday $19 thousand and 666, seven years soared 6000 times, become one of the largest in the history of human asset bubble! The brightest in the blockchain liar coat line Gloves White Wolf Ponzi scheme real. In China, virtual currency is the crooks carnival. JP Morgan CEO Jamie Damon said bitcoin is a hoax”. In February 2018, Dr. doom Roubini said bitcoin fundamental value is zero, is the largest Ponzi scheme in history. In April, Buffett said, buy bitcoin rather than investment, rather than gambling. The International Monetary Fund (IMF) leader recently said that the central bank should seriously consider the issue of digital currency, to “fill the gap left by the use of cash down”.
This fall have brought an effect. What is bitcoin? Called mining, dig out, actually not, is actually out of the computer. We put all the computers together, is called mine pool. Since bitcoin fell, joint global mining equipment market also fell. The past mining people are making money, but now the money is only 12.4%. While the new mining into the field, there is 87% of all losses, he said never I didn’t earn money.
In fact, the original, why do we say, because Chinese, is the world’s most important mining base, a lot of people in the past Ordos mining, small hydropower in Sichuan mining. Of course, since then our country bitcoin limit, there are also some mills and moved to Canada, moved to Russia, but China is still the main bitcoin mining. So this bitcoin fell to Chinese mining industry certainly is a huge blow.
Online there is a map, pool the old mill, even now have to sell the pounds of. We know that in the past if bitcoin fire, do you want to order a vehicle, you have to open a mine to dig, but also line up to pay, but also not necessarily get the hand mill. Now is not the same, now the old mill have according to what? The catty to sell. The United States now make a special high up mining equipment company, now its shares also fell sharply 30%. So you will find, as long as after bitcoin fell, it is a leading, related industries all affected.
Bitcoin fell, or rose, what some people do? In the early days, for example in the last year, the mainland market China bitcoin speculation is more powerful. With the central bank ban bitcoin, has banned CIO, so at the end of last year, bitcoin trading force was transferred to Japan and South korea. So it is lucky in a sense, why? The bitcoin crash, a sense Chinese user loss should not too much. Now is the first Japanese users. Of course, South Korea is also a lot of users, and just as we have already said, Chinese miners suffered, this wave of Chinese because many of the miners are bitcoin suppliers, his loss is relatively large, so now many miners have not as scenery.
You dig, fried bitcoin bitcoin, bitcoin’s value in it? It is a string of characters, it is only. This is my character string out later, others can no longer be copied, so bitcoin can not be copied are confidential, so this thing with a ruler to measure value, it is very stable, because the ruler had, means that others could not have this ruler. So, the value of bitcoin is the most important measure of its properties.
We know that when the past world currency exchange, everyone with $$$is not standard, also from time to time the rise, decline, inflation and so on. So in the first few months, for example when inflation in Argentina, many Argentines not for dollars, but for bitcoin. But we didn’t think that bitcoin now has a huge risk, it is also a lot of volatility.
For example, we just said the etheric coins, also known as digital currency 2.0. In the etheric Fang, we can develop a variety of smart contracts. For example, if I borrow your car, promised to night 12 points to you. But if I did not, for example we garage, the car can’t go into the garage, only you can enter, which is called intelligent contract, to a certain time it will automatically trigger the automatic implementation of the contract. I owe you money, agreed to what time, and automatically put this money away. So one of the most important value of the etheric square, can develop a variety of smart contracts on the basis of it.
Digital currency market has so crazy, in fact, we can not say the blockchain is not good. In other words, block chain technology and digital currency market is actually the two concepts, as we said, we cannot put on the bath water, the bathing basin inside children poured off.
Application of block chain technology, it can be divided into several aspects, such as the first course is used for digital currency, the issuance of the various kinds of air coins. Air coins before last year’s central bank supervision, in China is quite crazy, for example, used to do E rent treasure MLM people, are beginning to sell digital currency. So we say that is actually a digital currency currency currency ICO by air, air is pulled through after the listing, so let up, some retail or leek have entered into this market. So in the last year before the central bank intervention, many large coffee will encourage those who enter leek is not, of course to cut chives, do not know. So we say that the digital currency, now this year basically zero. The original price of 1%.
Why block chain value? The application of said digital currency speculation and the blockchain, it too is one thing. For example the blockchain in what? In the middle of the chain it has value. I am a large enterprise, I have a lot of suppliers in the past, I give you a long-term checks, or a long-term commitment on the block chain inside, then its supplier can take this certificate and other transactions. To the end of the year or six months after accounting.
In some circumstances, such as what we do? Do this proof, as everyone has your graduation certificate, your birth certificate, or other proof of what you. If your graduation card I put on the block chain inside, you have three classmates to do endorsements, three students for you in the block chain endorsement, that I and your classmates, so I can see in the recruitment of the time, the value chain block.
So although the digital currency bubble, but the application block chain is an important trend in the next ten years.
Bitcoin is not like the stock immediately soon rebound quickly? My personal judgment is that now the entire digital currency market, the situation is likely to continue for a long time, at least half a meter. What time can be recovered? We recall the Internet at that time. After we burst in 2000 the Nasdaq stock market, the stock market than the Internet as the concept of price down all the bubbles, and even some delisting. At that time in the United States at least a dozen companies delisting. How to restore confidence in it? Because the Chinese was looking for a MMS, and China Mobile Monternet cooperation, these Internet Co have income, what MMS, so a customized ringing tone, small application, next is the network game, the Internet Co really got the money, so the market will quickly regain confidence.
According to the historical experience, now the block chain or now digital currency market, if you want to restore consumer confidence, must find a similar application, there must be such a market, the application block chain of people can earn money, so it will recover the investors or the entire market confidence. Now it seems that confidence, or this application, we find out where? May I believe that within a year or a year and a half, there might be such applications. So bitcoin bitcoin bear market, or the entire digital currency market should bear market is still relatively slow.
Thank you for watching “financial observers”, please pay attention to our program. (to be continued)
(source: spring culture media)