Bitcoin, a digital currency that has been dormant for a long time, has recently been like a "wild horse running off", and its price has soared. According to data from the industry information platform CoinMarketCap, although the historically highest price of Bitcoin is still recorded as $20,809 on December 17, 2017, as of December 2, the prices of multiple trading platforms have reached a record high.
What is it that injects a "booster" into Bitcoin, is there a risk brewing in the market outlook , and will this risk be transmitted to the country?
Rising "crazy mode" reopened
In the past two years, Bitcoin once fell to about $3,100 per coin, but it began to stir again more than two months ago. Taking Huobi platform data as an example , the price of Bitcoin hit a new high of US$19,988 on December 1, surpassing the US$19,875.85 set on December 17, 2017. On July 19, more than 4 months ago, its unit price was approximately US$9,100. The highest point during the year increased by more than 420% from the lowest point during the year.
Today's crazy trend has evoked the memories of Liu Peng, who had participated in bitcoin trading. Starting in November 2017, the price of Bitcoin has been rising all the way, and finally reached its highest point on December 17 . The astonishing increase has made countless people crazy and accumulated huge risks. After that, various countries' supervision and management took a timely action to prevent the spread of risks . Profits cashed out and the "buildings" collapsed and fell by 70% in just two months.
"Bitcoin's price is very volatile, so it has not been an effective payment tool." An industry insider said. Bitcoin rose in November 24 up to about $ 19400 , just two days later fell to $ 16,300 from top to bottom, in one day up more than 11% decline. After the introduction of contract trading with leverage to amplify funds, this kind of ups and downs is even more crazy.
In fact, the controversy surrounding Bitcoin has never stopped . Some people believe that the blockchain technology and decentralized ideas behind Bitcoin are disruptive. There are also views that Bitcoin is "air" and has no value at all. Ye Jian, director of the Blockchain Committee of the All-Union Mergers and Acquisitions Association, said that the volatility of prices and the characteristics of technical design determine that Bitcoin is not suitable for global circulation as a currency. But as a "digital gold" storage , it has begun to be recognized by some institutions and individuals.
Participation of overseas institutions becomes an important promoter
Why did Bitcoin, which have been silent for a long time, suddenly explode recently? In the eyes of analysts , there is already a clue.
In May of this year, the total amount of bitcoins limited to 21 million ushered in a halving of output . Wu Hongliang, the editorial board member of the Central Party School Press Blockchain Series, pointed out that this rule setting determines the "scarcity" of Bitcoin . Generally speaking, after the halving, prices will usually rise sharply.
In addition to the direct factor of the halving, compared with the past, this surge has a direct driving force , and that is the entry of overseas institutions.
According to industry sources, overseas compliance trusts continue to increase their holdings of Bitcoin, and some large institutions have begun to support Bitcoin transactions . This has brought considerable traffic to the Bitcoin trading market.
According to foreign media reports, Grayscale Investment, a Wall Street digital asset management company, had more than 10 billion US dollars in assets in the third quarter. Grayscale Investment provides publicly traded funds linked to digital currencies such as Bitcoin . On October 21 this year, the American payment giant PayPal announced that it would allow users to buy and sell digital currencies with cash. Due to the huge number of PayPal customers worldwide, this move undoubtedly provides imagination for overseas digital currency investors.
The global spread of the epidemic has increased risk aversion, and Bitcoin is used as one of the investment directions . "The emergence of the epidemic has caused many technological assets to skyrocket, and Bitcoin has also been favored and deployed by some people." Ye Jian analyzed that there is another important indicator, the key to the purchase of digital currencies such as Bitcoin-TEDA. The market value has soared from about 4 billion US dollars at the beginning of the year to 17 billion US dollars, which shows the strong market demand.
After the price surge, the market showed signs of change. According to the new regulations of the United States , a large international trading platform has suspended new margin trading and will completely terminate the margin trading function , causing a certain panic in the market. With multiple factors superimposed, Bitcoin entered a shock range at a high level.
There are signs of rising domestically
As the price of Bitcoin rises, risks continue to accumulate. At present , the country is relatively calm.
Wu Hongliang said that the central bank and other departments issued an announcement on September 4, 2017, clarifying that token issuance financing is essentially an unauthorized and illegal public financing behavior and cannot be used as currency in the market. Therefore, although the current market is somewhat similar to that at the end of 2017, thanks to the country's continuous and strong regulatory measures, the chaos of issuing tokens is rare in China.
However, there are also some funds that cannot be held back. Stop market analysis public number recovery day when more and more relevant "Community" very active recently , within the group of three or four hundred people to discuss the most is how much Bitcoin rose to the highest energy. According to industry insiders, the price of Bitcoin mining machines used for "mining" has also risen. Not only is there a shortage of second-hand mining machines, the sales of new mining machines of a certain domestic brand have been scheduled to the second quarter of next year. At the same time, pyramid schemes, fraud under the banner of the name of digital currency , more signs of resurgence.
Industry insiders pointed out that the hype of digital currency is like "hype" , and a steady return to blockchain technology is the right way.
Ye Jian said frankly that blockchain technology is used to solve the more specialized "Byzantine Generals Problem"-the trust problem in information transmission, so unlike Internet technology , large-scale application scenarios may not be as many as imagined. However, with the development of related industries, the broad application of blockchain technology to finance and social services has a promising future.