To blame only Musk yells bitcoin too hard, now bitcoin and Musk has formed a deep binding, in Musk such a flow of big brother yells, nowadays bitcoin has long been not a small circle of the game. More and more retail investors enter, bitcoin broke the circle.
Recently, the news of domestic entrepreneurs investing in bitcoin has gradually become more intensive. on the evening of March 7, Meitu announced that it had purchased about 260 million yuan of bitcoin and ethereum (a cryptocurrency with a market value second only to bitcoin). Prior to this, on the evening of February 19th, Dan Bin, a major domestic private equity player and chairman of Oriental Harbor Bay, publicly stated that he bought a bitcoin ETF fund.
There are also voices pointing out that some domestic and foreign bigwigs with traffic because they have invested in Bitcoin down the field to yell, will let ordinary people follow suit, and the up and down nature of this type of asset fluctuations will make many ordinary people end up losing money and getting hurt.
Who is speculating on bitcoin? Is the rise and fall of Bitcoin related to the statements of these traffic gurus? What is the risk of bitcoin breaking the circle? Deep Burn takes you on a journey to find out.
Since the second half of 2020, the price of bitcoin has continued to rise, and the surge has brought bitcoin out of the loop, and more and more ordinary people are trying to use bitcoin as a means of investment.
According to information released by bitcoin brokerage Coin, the company saw a 46 percent jump in the number of institutional accounts opened in 2020. Benefiting from Bitcoin's bull market, the cryptocurrency market is attracting a large number of retail and institutional funds to open accounts.
Head cryptocurrency exchange Coinbase's recent IPO filing with the SEC said that certified individual users on the platform have shown quarterly growth from 2018 to 2020, which is further evident as we move into 2020, and is closely tied to the rising price of bitcoin and increased interest in bitcoin investing from more and more people.
In 2017, law student Guiyou took a course on Technology and the Law, which covered legal precedents involving bitcoin. He later learned that bitcoin was not an officially recognized currency in the country at the time, but the courts still recognized its value. "There was a debtor who only had bitcoins and no other assets, and after he owed a debt, the court executed to give his bitcoins to his creditors".
Your friend told Deep Burn that even the legal industry needs to face the changes brought by Bitcoin, and perhaps there will be a lot of value space for Bitcoin in the future, so he bought $6,000 worth of Bitcoin, when the price of 1 Bitcoin was less than $10,000, and he hadn't invested in stocks or funds before that. "I bought it in the summer, and then that winter bitcoin plummeted, I was in a very bad state of mind, a moment to feel that I can not hold, want to sell, a moment to comfort themselves, they read so much law, technology, philosophy books, the value of bitcoin to recognize very thorough, should believe their own judgment.
At that time, many people would take the matter of Bitcoin to ridicule him, "See, I told you that it is a fraud, cut your leeks". The first thing I'd like to say is that I'm not sure if I'm going to be able to do this, but I'm sure I'm going to be able to do it. Until now, the value of bitcoin in his hands is about 30,000 yuan.
Mantis, who works for an internet company, received the share of money when he got married in 2018 was bitcoin. On the day of the wedding, a friend who works at the exchange passed by the bookkeeping desk and reported - "1.1314 bitcoins". After that, the friend asked him to register a digital wallet on his own, and after successful registration told him the address to receive the money, and put 1.1314 bitcoins into his account.
At the time, air coins were prevalent (coins that were issued for the purpose of generating money), and Mantis' perception of these virtual currencies was neutral and negative. He just took the bitcoin as a wedding gift collection, and did not want to go deeper, "February when the fund soared also thought about whether to sell the bitcoin to buy the fund, but thought that this is, after all, a gift, more meaningful, but also did not sell."
However, Mantis told Deep Burn that he did not intend to invest in Bitcoin for the reason that he "doesn't make money outside of his own perception".
And the above from the purchase and sale of people to contact the bitcoin is different, the family engaged in the power industry Xiong Baiqiang more than other people smell the "business opportunity" - mining, that is, according to a specific algorithm program, computing to obtain a certain amount of virtual currency. The most important cost of virtual currency mining is electricity. So he hit the idea of power plants without Internet access, mainly using hydropower and wind power in Inner Mongolia. But because this action is in the gray area of the law, in the family's discouragement did not continue.
Recently, the word mining has also appeared frequently in people's eyes. 25 February, Inner Mongolia Development and Reform Commission issued a document saying that it intends to comprehensively clean up and shut down the virtual currency mining project. Because of the need to run the machine 24 hours a day, many "mining" companies will operate in the place of cheap coal-fired power, Inner Mongolia because of the rich power resources, sparsely populated, can support large-scale mining, become a popular choice for bitcoin mining.
According to the Bitcoin Power Consumption Index compiled by the University of Cambridge, China currently accounts for about 65 percent of all bitcoin mining computing power in the world, with Inner Mongolia alone accounting for 8 percent, compared to 7.2 percent in the United States.
Meanwhile #SouthKoreaNearly20%ofInternetCafesShutDownToMine hit the hot seat. With a 200-computer South Korean Internet cafe, for example, the daily "mining" 15 hours can profit at least RMB 5,800 yuan, much higher than the usual business income of many Internet cafes.
Source / microblog screenshot
In the investment of Bitcoin V, Musk is undoubtedly the most cheerful one. Search for bitcoin and Musk on Baidu, and the first question that pops up is even: was bitcoin invented by Musk?
Source / Baidu screenshot
From the end of January, Bitcoin and Musk have formed an unbreakable bond, and even let people have a kind of illusion: Musk's mouth can affect the rise and fall of Bitcoin.
On January 29th, Musk changed the profile of his Twitter account to "bitcoin", and the price of bitcoin rose by more than 18% to $32,758 per coin. Musk also said in Clubhouse, "I'm a bitcoin supporter. I should have bought it 8 years ago, I'm late to this feast."
On February 8, Musk announced that Tesla had bought $1.5 billion worth of bitcoin and would be accepting bitcoin as a form of payment in the future, drawing a wild rise to $47,000 in bitcoin.
Daniel Ives, an analyst at US investment bank Wedbush, argued that Musk stepped in to influence Bitcoin, to the point that after Tesla funded the investment in Bitcoin, the two sides had clearly formed a binding relationship. Data from Forbes Magazine also shows that there is a strong correlation of 0.615 between Bitcoin and Tesla. Tesla's stock price also rises and falls with the rise and fall of bitcoin.
It's true that bigwigs don't practice what they preach. For example, JPMorgan Chase CEO Jamie. Dimon has written that bitcoin is a fraud. Shortly after posting the criticism, in September 2017, JPMorgan bought a large chunk of Bitcoin at a price low of $3,000.
Domestically, in September 2017, Chinese regulators asked domestic bitcoin exchanges to develop a risk-free clearance program and shut down by the end of September. The official attitude determines the delicate position of bitcoin in the country, and public figures are cautious about what they say about bitcoin, and rarely reveal anything about their bitcoin holdings.
The first internet bigwig to express his appreciation for bitcoin on a small scale was probably Wang Xing, founder of Meituan. "I'm one of those people who have Bitcoin now, and must honor this creation of extraordinary imagination with practical action." On December 22, 2013, Wang Xing expressed his recognition of Bitcoin by documenting his feelings about buying Bitcoin on Diners.
Recently, news of domestic entrepreneurs investing in Bitcoin has gradually intensified.
On the evening of February 19th, Dan Bin, a major domestic private equity investor and chairman of Oriental Harbor Bay, publicly stated that he had bought into a bitcoin ETF fund, accompanied by comments such as "Although it's a bit late, I'm going to practice when I figure it out," "With Tesla allowing bitcoin to be used as a payment currency, it's value will probably be raised. "
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On the evening of March 7, Meitu announced that the company purchased 15,000 units of Ether and 379.1214267 units of Bitcoin in open-market transactions on March 5, 2021, and that the total consideration for the two cryptocurrencies was approximately $22.1 million and $17.9 million, respectively, or a combined **** involving $40 million (approximately 260 million RMB).
After the news was announced, Cai Wensheng, chairman of Meitu, said in his WeChat circle of friends, "Someone has to be the first to eat crabs, this should be counted as the first Hong Kong-listed company to buy bitcoin, and is also considered to be the world's first listed company to use ethereum as a currency value reserve."
Source / screenshot of Tsai's circle of friends
In fact, since 2020, U.S. financial institutions have begun to enter the digital currency market in a big way, and it's the entry of institutions that is an important reason to promote the surge of bitcoin.
Cheng Zhipeng said that the rise of bitcoin is mainly due to the large-scale entry of institutional funds. Since the outbreak of the new crown epidemic in 2020, the global central bank water, but the environment is limited by the epidemic, resulting in funds objectively difficult to stimulate the economic cycle, and then flow into the capital market to push up the price of stocks, commodities and other assets, the rise of bitcoin also benefited from this. Many retail investors were reluctant to enter the market because they saw the high price of bitcoin, and it was mainly institutional funds that pushed the price up, with most retail investors just watching the action in the process. As bitcoin has now begun to show the trend of mainstream finance, and even international geopolitical between the game new tools, retail investors in the bitcoin market will gradually become less influential with the bitcoin **** knowledge to expand and expand the size of the market.
During August and September 2020, Nasdaq-listed MicroStrategy*** invested $425 million in Bitcoin.In late October, U.S.-based payment platform PayPal announced that it would allow its users to buy, sell, and hold digital currencies such as Bitcoin through its online wallet, and that starting in early 2021, its users would also be able to use digital cryptocurrencies to make purchases.
Cheng Zhipeng believes that traditional financial institutions have entered the bitcoin market in a big way, which will change the structure of the bitcoin market, and the subsequent cyclical changes may show a new pattern.
"I have extreme contempt for the behavior of some bigwigs at home and abroad who have the flow to start yelling and inciting because they have invested in bitcoin or other digital coins, and this behavior is very irresponsible. Because of their every move, their investment behavior will make many ordinary people follow suit, and the up-and-down nature of such assets will make many ordinary people end up losing money and getting hurt, and for them, the price is very intuitive and tragic." February 23, Matrix Partners China founding managing partner Zhang Ying on Weibo expressed concern about some big brother down stand bitcoin.
Some people compare Bitcoin to a 24-hour casino, an unregulated financial trading market, where people can magnify their leverage at will, and human greed is infinitely amplified.
On December 16, 2020, the "Xinghai Bay Bridge Jumping Case" was a sensation, and the cause of this tragedy is investing in Bitcoin, or the greed of Bitcoin investors. Because of the early entry, Zheng graduated from college by investing in bitcoin to get nearly ten million assets, and then due to the huge fluctuations in the price of bitcoin, coupled with Zheng's leveraged operation, a **** loss of more than 20 million. Due to the inability to bear the huge losses, Zheng Mou killed his daughter, and with his wife jumped into the sea to commit suicide, and eventually Zheng Mou was rescued, was prosecuted by the Dalian City Prosecutor to "unlawfully deprive others of their lives, causing the death of a person, suspected of intentional homicide".
"The average person investing in Bitcoin, like all investments, needs to know enough about the object of the transaction. Bitcoin is a risky asset with high volatility, so if the risk appetite is relatively low and can not withstand huge fluctuations, it is prudent to participate in such a subject." Cheng Zhipeng said.
Source / Unsplash
In addition, Bitcoin itself can be utilized by unscrupulous individuals as a tool for money laundering.
One day in 2015, Xiaoli opened the office computer and found that all the files on the desktop can not be opened normally, click on a form-like icon, is an English mail, showing "your computer is locked, all the files can not open, but not damaged, still want, pay 3 bitcoins", and in the The email also states how to buy Bitcoin.
Xiaoli recalled to the deep burning, he did not know what is Bitcoin, asked a study of computer security classmates to know, this is a computer virus. The first time I saw this was when I was a student at the University of California, Berkeley, and I was a student at the University of California, Berkeley. It was then that he first learned that Bitcoin is a favorite payment method of criminals.
Bitcoin's anonymity, borderlessness, and peer-to-peer payment features objectively shorten the links between the transactions of criminals and increase the difficulty of detecting cases.2020 In October 2020, police in Wenzhou, Zhejiang Province, detected a case of drug trafficking using Bitcoin. The police said that the criminals in order to avoid detection, through the virtual coin transfer way to carry out transactions.
Another potential risk factor for bitcoin is its creator, Satoshi Nakamoto. Satoshi Nakamoto mined 1 million coins in his early days, and at the current price of $54,000 per coin for Bitcoin, Nakamoto is worth around $54 billion. Wang Xing has claimed on Dining Out that in theory Satoshi Nakamoto is already the richest man in the world. "A friend who is firmly bullish on Bitcoin sees only one risk, if Satoshi Nakamoto is still alive and does jump out someday (by moving that big pile of Bitcoins that have been dormant for a decade) to check his credentials, then Bitcoin could be destroyed."
Interestingly, "the true identity behind Satoshi Nakamoto, the anonymous creator of Bitcoin, and Satoshi Nakamoto's transfer of Bitcoin" is also listed as a risk factor in Coinbase's prospectus.
The implication is that one of the key features of Bitcoin is decentralization, and that the silent Satoshi Nakamoto has become its biggest center and source of turbulence.