When I first heard about Bitcoin, I felt very far away from us.
From being able to trade bitcoin in China to stopping trading bitcoin.
I have never known what platform Bitcoin can be traded on. For Bitcoin, it can be said that I am ignorant.
Bitcoin has always been a hot spot of hype in the financial market.
This year, Bitcoin went from more than 3,000 U.S. dollars to the highest of more than 34,000 U.S. dollars, an increase of 11 times;
Ethereum rose from US$81 at the beginning of the year to the highest of US$1170, an increase of 15 times.
No matter what the reason is, it is impossible for any item to rise without limit. At a certain time, it will definitely be adjusted. The greater the increase, the greater the adjustment.
The general trend should be that non-statutory digital currencies are going downhill! Money play money crit suppressed! Attract capital to flow to emerging industries, emerging high-tech companies, and drive tangible things to move forward healthily! The future trend of the world, the whole mankind enters the earth science and technology, the galaxy highlight project! From now on, we will fight for technology, education and talents! New era of talent first!
Bitcoin is the biggest bubble in recent years. The decline shows that the bubble has burst. As a virtual thing with no value, it can hype up to this price, which has aroused the vigilance of many countries. Now many countries have issued warnings and prompted virtual things. Regarding currency risks, my country has recently issued relevant regulations prohibiting domestic illegal transactions of Bitcoin. In the past few days, the central bank has also stated that strict financial institutions provide settlement services for virtual currencies.
What is ridiculous is that there are still many fools who are still looking forward to the price increase of virtual currency, stretching their necks and waiting for the dealer to cut the leeks, and they have gone straight into the trap.
Virtual currencies such as Bitcoin and Ethereum plummeted. I think it was caused by these reasons:
First: lack of new funds to enter the market, not enough to support the ever-increasing virtual currency market value;
Second: Since mainstream currencies now have contract trading markets (futures), market makers can also make money from falling prices, so they take advantage of the trend to suppress prices and cooperate with short contracts to make money;
Third: The international community is still suppressing Bitcoin and other virtual currencies, causing certain negative policy effects;
Fourth: Bitcoin will usher in a reduction in production, but a new generation of mining machines have not been developed, so many absenteeism are difficult to predict the price trend after production reduction, and some people tend to sell Bitcoin first.
All exchanges that look like domestic users are firewalled. Yes, normal domestic logins can no longer be logged in. Foreign countries can, science can be, but it adds a very high threshold.
In addition, Binance was hacked, high-frequency trading, and a large number of users questioned the safety of investment funds.
The successive events are superimposed, and I feel that it is mainly affected by the firewall. After all, countless novice investors have been isolated, and domestic follow-up funds rarely enter the market for a long time.
Unlike most international currencies, Bitcoin does not rely on specific currency institutions to issue, but is calculated based on specific algorithms. With the support of such extremely unstable fundamentals, Bitcoin is at risk of collapse at any time.
A recent report by the investment bank UBS found that “Bitcoin is neither a currency nor a viable asset class, at least not yet.”
Without physical support, relying only on fragile fundamentals, and for the general public, Bitcoin and other mainstream currencies may eventually be just a bubble that bursts at the touch of a touch.