What is speculation bitcoin plummeted skyrocketing
This Thursday, crazy month bitcoin staged cliff type market decline.
Since September rose doubled in bitcoin, November 4th hit $500, the price is the last bitcoin appeared in August last year. But bitcoin market speculation, it is doomed to a high market volatility, Thursday morning Beijing time, bitcoin prices fell cliff style, a large number of selling pressure prices fell 26% to $368.
Bitcoin was born in 2008 after the financial crisis, suffering from the super currency led to the global financial crisis, investors including civilian scientists on the current monetary system doubts more and more strong, so in 2009, a man named Nakamoto So put forward the concept of bitcoin (BitCoin). According to the published design Nakamoto open source software and P2P network on the construction of digital currency bitcoin is a form of P2P, point-to-point transmission means a decentralized payment system.
Two characteristics of bitcoin hit the current monetary system weakness: one is to the center, no issue mechanism, it is impossible to control the number of issued. The issuance and circulation, is realized by P2P algorithm of open source, can ensure not by making bitcoin to a large number of manipulated currency; two is scarce, the total number is very limited, with strong scarcity. The monetary system has been used in 4 years only no more than 10 million 500 thousand, the total number of after will be permanently limited to 21 million.
There are two characteristics comparing with the current currency, the complete eradication of the central bank or by the government to create unlimited money, power requirements create unlimited money, resulting in invisible inflation, basis of predatory and phagocytic people in the intangible wealth. Therefore, the birth of a popular bitcoin, and soon there will be a vast market.
Bitcoin can be popular is the great irony of the current system of international monetary system, the central bank to rethink current monetary system. In 2013, bitcoin is developing very fast, once the central bank guard, and even began to impact the current currency system, instead of the current global monetary system calls four. In addition, some countries began to allow the real currency bitcoin, and some influential financial heavyweights such as Li Jiacheng and a number of bitcoin investment, making some countries fear. For example: Democratic Senator Jo Manchin of the state of West Virginia (JoeManchin) on the 26 February 2014 a number of federal government regulators issued an open letter, I hope the relevant authorities can present bitcoin encourage illegal activities and disrupt the financial order seriously, and asked to take action as soon as possible, to cripple the electronic currency.
It is undeniable that the bitcoin currency weakness has been hit by some speculators hype, over exaggerated, aimed at bitcoin wantonly speculation, making bitcoin speculation once untouchable. After the central banks have blocked, bitcoin prices fell dramatically, in January of this year fell below $200 after the bitcoin market was in silence. But since September, bitcoin market suddenly started a month rose up to 100%.
Bitcoin prices are mainly driven by the block chain technology, and bitcoin as derivatives of block chain technology, real transparency of it by many investment banks and financial institutions concerned. The recent global investment banks and many financial institutions are concerned about the block chain technology, the technology itself is from the bitcoin market develops, the expected bitcoin demand is expected to have some support. In addition, the EU approved currency, bitcoin is exempt from VAT this positive good news may also cause. There is, strengthen bitcoin may stimulate the rise in value Chinese government capital controls, because some rich people want to borrow bitcoin RMB transfer China.
But for whatever reason, the bitcoin rose still could not escape the speculation. For these reasons only to continue to seek excuses for speculation. As long as it is behind the speculation bubble risk is certainly something, the bubble to burst, always risk exposure. Investors must pay attention to clear bitcoin investment risk, try not to meddle in the investment goods.
From: Beijing Youth Daily