Pan Helin: bitcoin carnage near high risk gambling game over wealth?

Source: financial website

CoinDesk data show that on Sunday bitcoin prices fell 10%, a record low of $3447.58, which is the lowest level since September 2017. Bitcoin investors, this is really a very difficult year, when 1 months, bitcoin prices as high as $16879, then all the way down to $3447.58 now, the decline has reached 80%.

A lot of bitcoin investors finally could not carry out. Micro-blog, WeChat circle of friends, bitcoin forum platform, speculators is Starving people fill the land. Some senior game player coin circle says that their assets have been a loss of more than 85%, can only be declared bankrupt”. Data show that the bitcoin market capitalization from 2017 highs to now, has lost 1 trillion and 600 billion yuan, bitcoin investors suffered heavy losses.

At the same time, and the way to spend the groundless talk bitcoin bitcoin mining machine, this is doomed. The industry recognized the most cost-effective models, S9 – bit, has fallen below the shutdown price the day before, to see today’s bitcoin price, the electricity accounted for 102%, which means that by digging a bitcoin electricity is more than the market price of bitcoin, which is not hosting fee and labor fee.

In fact, significant fluctuations in the price of bitcoin, and not what. Early in June 2011 when it had appeared 94% decline in 2013 also has two spike, respectively 75% and 87% decline. It can be seen that the price volatility is one of the basic characteristics of bitcoin. The fundamental reason is that the value of bitcoin has great uncertainty, and speculative property is too strong, the high risk almost in gambling is not too much.

Bitcoin is full of controversy since its inception, its value is difficult to measure accurately, an important reason is that the underlying technology support such a virtual currency, namely block chain technology, for most people is still quite strange. Block chain technology itself is undoubtedly of great significance, it can be used as a reliable database to record information is stored, a permanent record of the ideal solution, but also solve the problem of trust in the process of multi point information interaction. That is to say, the block chain technology once mature and put into application, the value outlook is very considerable, it is worth looking forward to.

However, the ideal is full, the road is tortuous, at least so far, the research for large-scale application of block chain technology, has not made breakthrough progress. However, with this concept derived from the virtual currency, but such as have appeared like bamboo shoots after a spring rain. This is doomed, these virtual currency value is built on a shaky basis. Many investors invest in virtual currency, is actually a kind of speculation, said a serious point, is gambling. Moreover, the money does not block chain was used in the development of technology, that is to say, the popular virtual currency is a speculative bubble in some degree.

As an investment object, bitcoin virtual currency and stock is not the same. Shares represent ownership of a company’s assets, assets can return to investors, as long as the growth performance of the company, then the value of the stock investors actually increased, even if the stock price fell to market value evaporated, corresponding to the physical assets are in, while bitcoin itself does not create wealth. Nor should any physical assets, once prices fall, then it really is just wealth evaporate. Similarly, bitcoin monetary function is virtual, different from the precious metals such as gold and silver, is different from the government credit currency.

Financial speculation is an important driving factor of virtual currency price fluctuations. Over the past few years, the domestic various “money” to play too much, basically will likewise involve “virtual currency” concept as long as the. Sharp rise in the price of bitcoin international, also cannot do without the hype fueled domestic funds. Similarly, bitcoin vulnerable to international speculators operation. That is to say, the price of bitcoin highly uncertain, largely due to speculation, so bitcoin investment, for small and medium-sized ordinary investors, the risk is great, if you can not afford, it is best not to participate in.

Nevertheless, as a form of wealth allocation, bitcoin still has its value of existence. After all, as a kind of currency, as long as there are enough people believe that it can play the function of money, to some extent, it has a circulation of credit. Also, store of gold and other tangible wealth relative, bitcoin is more convenient to carry.

Bitcoin is the currency circle of investors widely criticized and security issues, such as hackers stealing coins. Under the current technical conditions, it is difficult to ensure bitcoin holders own bitcoin is being stolen by hackers, and stolen after very difficult to track. But after all, this is a technical issue in time, and other related technical progress, I believe that these problems can be solved properly.

From the point of view of the current market conditions, it is difficult to return to the peak of $20000 in the price of bitcoin, after all the sharp fluctuations in prices have a lot of confidence of investors caused a serious blow. But as I mentioned above, the price volatility is a basic feature of bitcoin, perhaps in the speculators participation, its price will usher in a wave rally. But anyway, still does not change the characteristics of high risk game, which is akin to gambling.

In short, if the bitcoin speculation as the subject matter, then speculators to make full preparations for significant fluctuations in the price of bitcoin, small speculators that do not have the ability to bear this risk is still the best of departure. And in the long run, as long as the development of technology can solve the safety problem of bitcoin, then from the point of view of wealth allocation, bitcoin is quite significant, do not have yigunzidasi, whether is the biggest Ponzi scheme, also let the time to answer.

Leave a Reply

Your email address will not be published. Required fields are marked *