The end of 2017, bitcoin virtual currency led a real fire, 10 million times in 8 years, this is a crazy rate of return. This means that as long as you spend a dollar early to buy N bitcoin, which brings 8 years of revenue, let you become a multi-millionaire.
In my opinion, there are two key points in the bitcoin fire: ecology and high yield
Ecology: The virtual currency market led by bitcoin has formed a complete industrial chain, including mining, trading, trading, exchange and payment. It is the complete chain of these bitcoin markets that make bitcoin the channel and value to use. Bitcoins without a complete industry chain do not have the value of trading because of the lack of liquidity and channels. The closed loop of the industry that is now formed, making bitcoin a tradable currency, makes it a key element of speculation.
High Yield: Ecology is the basis for the development of bitcoin, and the key to the rise of bitcoin prices is the high yield and the insane news report, the return on investment from the lowest point of Bitcoin to the present, and the foothold is low High yield between. In fact, Truth has always been very few people holding bitcoin, half-way to join the more investment institutions, agencies will also have the sale, sell high sell low and so on. However, based on the publicity and profitability seen, speculators and bandit traders frantically poured in. As prices soared and attracted a wave of speculators, they seemed to have risen as fast as the last madness of the bull market until sometime they exploded.
Now that bitcoin has gone through a crazy period of time, it is very difficult to have such a crazy grand occasion in the future unless there is a major technological breakthrough or a significant market gain (national policy, etc.). Does Bitcoin have bubbles? huge!
Buffett, Charlie Munger and others have emphasized that there is a huge bubble in Bitcoin, that is, financial derivatives. However, there are also some people who are steadfast in their optimism: Jiang Manzi, Xu Xiaoping and Cai Wensheng. Viewpoint founder Cai Wensheng point of view: bitcoin bubble, but do not participate in is the greatest risk (probably content). Mr Tsai's view seems to be the biggest speculator, affirming the bubble's risk, but also encouraging participation and participation in bubbles of investment.
The future development of bitcoin can not jump to conclusions, then also want to understand the idea of big brother, chiefs bullish always there is truth. No investor is stupid.
But for now, there are several major drawbacks of virtual currency.
- Bitcoin's short-term value is boosted by the market. From an economic point of view, the price of 1 bitcoin = 1 bitcoin mining cost, but due to the concept and the limited issuance, bitcoin is precious. In some people The value is rising, so the price goes up. But essentially the value of bitcoin is still virtual. The biggest feature is to go to the center, such as transparent transactions.
- The currency is issued by the state, endorsed by the state, so the value of the legal tender has a strong backing. A country's currency has an important economic role in the global market. Virtual currency by institutions, investors endorsement, its effectiveness can be basically said 0. Now the big feature of the blockchain currency is decentralization. However, from a national point of view, decentralization instead eliminates the national interest. This is the biggest drawback I see.
- The virtual currency headed by bitcoin is issued by an organization, an individual and an enterprise. The entire organizational structure is more like a stock of a listed company. The circulating virtual currency is a negotiable stock, and investors and owners are corporate shareholders. What people see is their future company value. The final popularity of the currency issued by the business means that the ultimate beneficiaries will be concentrated in the hands of the issuers, leaving some to take most of the interest, which amounts to a monetary decision by the business and looks a bit tugged.
There are more and more participants in the blockchain event, but the final determination of this value is still in the hands of the government. In fact, the fairness brought by decentralization needs to be controlled by the authorities.
