Securities Times reporter Roman
Brutal growth of the land, free wilderness, not crazy, it becomes a magic.
Bitcoin website shows Bitcoin on February 6 fell below 6,000 US dollars, 24-hour decline of more than 25%, the current total market capitalization of only 102.77 billion bitcoins, since December 17, 2017, bitcoin prices fall from historic highs More than 70% of the so-called 'currency ring day, human year', the currency of the virtual currency volatility, any financial product ever unmatched.
If you use two words to sum up bitcoin in 2017, it is undoubtedly 'crazy.' This digital currency frenzy has created a huge human stage: greed, fear, anxiety, faith collapse moments staged for any bitcoin Critics are seen as motivated by bitcoin loyal followers, but in fact, just as the author has mentioned on many occasions before, most of Bitcoin's carnival feast was left out but they are still waiting Looking for a breakthrough into the currency circle, they think this is a belief, in fact, is just a rediscovery of the obsession with the redistribution of wealth.
Bitcoin, on the other hand, is favored as a commodity. First, it has basic values. It requires tremendous power in the process of mining. The tremendous amount of computation is a huge amount of 'mining machines' (computer computing devices) Consume a lot of electricity to form each bitcoin production is costly; Second, as the largest application of blockchain on the basis of blockchain, it has a payment function, with the use value, according to Bloomberg data shows that the current The latest transaction rate of bitcoin is 2.95 pips per second and the transaction fee is $ 34 per transaction. However, the payment function of bitcoin is slower and more expensive than traditional payment methods such as VISA, and Bitcoin is only Accepted by the small range.So from the value of its own, the value of bitcoin is not enough to support the current high outrageous prices.
Paradoxically, decentralized bitcoin itself is becoming 'focused'. According to Credit Suisse's transaction address analysis, 97% of the world's bitcoin is in the hands of 4% of participants, and a small percentage of participants have Control a lot of computing power and share of bitcoin.In addition, South Korea's recent policy requires a full real-name system for digital currency transactions, so bitcoin anonymity became vulnerable.
As the danger goes up, bitcoin's crazy speculation moves it further away from the fundamentals of value, as with all financial bubbles, once a commodity, asset has good fundamentals and an appreciation of the imagination, leverage and speculation Will follow, the participants will lose their rational in the drum pass game, the price will soar, until several times, or even a hundred times out of its fundamentals .17 century Dutch tulip bubble, 18th century British South China Sea bubble, 1929 US stock market disaster ... ... each process is basically similar, its huge destruction so that people remember.
In the face of the bubble, all markets are the same. Do not fancy coin speculation, you do not see the world's largest exchange Bitfinex 120 million bitcoin was stolen in 2016, how many people were forced by the lever. 'If you do not know, it's best to stay away from it.'