Capital flows into bitcoin
Publish: 2021-05-27 23:23:00
1. The cryptocurrency has plummeted as China's central bank hinted at tighter regulation of the bitcoin, according to articles by ou Leying and Justin Jimenez, economists at Bloomberg. The attraction of bitcoin is that it gets rid of China's capital controls. However, the obvious fact is that the market size is so small that it is impractical to use bitcoin as a channel for large-scale capital flight. On the contrary, the surge in bitcoin trading in mainland China reflects China's classic investment bubble.
bitcoin fell to $903 on January 10, down to 17% from the peak of $1091 on January 4. The direct reason is that the people's Bank of China has hinted that they are closely watching the market for irregularities. Given that China's bitcoin trading accounts for about 99% of the total trading volume of global exchanges tracked by bitcoinity, it's not surprising that China's regulatory actions are enough to drive bitcoin prices down
1 China's enthusiasm for this cryptocurrency is misplaced. Last year, China's foreign exchange reserves fell by about $320 billion. Given that capital is still flowing in under trade items, the actual scale of capital outflow may be larger. The current scale of the whole bitcoin market is about 15 billion US dollars, which is too small to allow a very small amount of money to leave China
rather than regard bitcoin as a channel for capital outflow, it is better to regard it as the latest type of investment bubble in China. Just as the stock market bubble in 2015 and the precious metal bubble in early 2016, the rise in prices was initially based on fundamentals. For bitcoin, this is based on the demand of Chinese households for offshore capital. With the influx of speculators holding a lot of money, prices soared. In the end, the regulatory crackdown and the carnival ended - until the next round.
bitcoin fell to $903 on January 10, down to 17% from the peak of $1091 on January 4. The direct reason is that the people's Bank of China has hinted that they are closely watching the market for irregularities. Given that China's bitcoin trading accounts for about 99% of the total trading volume of global exchanges tracked by bitcoinity, it's not surprising that China's regulatory actions are enough to drive bitcoin prices down
1 China's enthusiasm for this cryptocurrency is misplaced. Last year, China's foreign exchange reserves fell by about $320 billion. Given that capital is still flowing in under trade items, the actual scale of capital outflow may be larger. The current scale of the whole bitcoin market is about 15 billion US dollars, which is too small to allow a very small amount of money to leave China
rather than regard bitcoin as a channel for capital outflow, it is better to regard it as the latest type of investment bubble in China. Just as the stock market bubble in 2015 and the precious metal bubble in early 2016, the rise in prices was initially based on fundamentals. For bitcoin, this is based on the demand of Chinese households for offshore capital. With the influx of speculators holding a lot of money, prices soared. In the end, the regulatory crackdown and the carnival ended - until the next round.
2. The dealer chooses your wallet address, transfers it to you, and you pay. This is a complete transaction
3. First of all, you need to have a balance in your account to check. Now you still have bitcoin in your account?
4. People looking for futures companies cannot trade without corresponding qualifications
5.
I think the vast majority of bitcoin's 800 million yuan should have gone into the pockets of some capitalists, and the remaining few went into the hands of those investors who speculated correctly in my opinion, bitcoin is more like a bubble economy. It is a game between capitalists and capitalists. Because even if the bubble breaks, they have plenty of means to come out, but for us, these small shareholders are different. p> Therefore, as users, we still need to be more rational to look at these things. The sky won't drop pie for us to pick up. We still need to focus on the present. We can't always look down on those castles in the air< the most important thing is to do what you do now
6. It's just a rumor. As early as the end of 2013, the central bank has clearly defined bitcoin as a special Internet commodity, denying its monetary attribute. People can buy and sell bitcoin freely at their own risk. Central bank governor Zhou Xiaochuan even compares bitcoin to a tradable asset like a stamp. That is to say, bitcoin is completely legal in China. The outflow of funds has little to do with the legal status of bitcoin, which has much to do with the attitude of the Chinese government and people's expectations of bitcoin.
7. No transfer of funds, right
for example, in bitoffer, you can transfer money from my wallet to my currency account first
for example, in bitoffer, you can transfer money from my wallet to my currency account first
8. 1. The government's regulatory attitude is unclear
it is understood that because bitcoin trading is not under the supervision system of banks, it is easy to be used in illegal activities, such as money laundering and drug purchase
at present, most countries, including China, have no clear attitude towards bitcoin regulation, except that Germany has made it clear that bitcoin is legalized and Canada has created the first bitcoin ATM. At present, there is still a lack of supervision on bitcoin in China, and the existing laws and regulations are not fully applicable to the supervision of bitcoin
e to the uncertainty of policy, some people in the instry are worried that every time the regulatory authorities take action, the price of bitcoin will fluctuate sharply, and there are risks in future hedging
2. The practical value of bitcoin is not high
the future development prospect of bitcoin largely depends on whether its payment function can be well reflected. Zhang Yuewen, a researcher at the Financial Research Institute of the Chinese Academy of Social Sciences, previously said that bitcoin does not play the core function of money payment, but only exists as an investment proct. If one day bitcoin can't be exchanged with the major currencies in circulation in the real world, it's worth less than a piece of waste paper
3, trading platform run away
however, bitcoin trading website is very fragile, the website may be attacked by hackers or shut down by competent authorities, and website operators may also run away with money, which may cause losses to the holders. At the end of October 2013, GBL, a trading website that was once popular in the bitcoin circle, suddenly shut down. Before most users had time to withdraw the funds from their accounts, GBL had already run away. According to incomplete statistics, there are about 500 victims, and the estimated loss may exceed 20 million yuan< 4. Control environmental risk
you also have to consider the environmental factors. mining machinery is not a zero emission equipment, which will create a lot of noise and heat. In this way, you have to consider the physical and mental health of the operation workers, and you also have to consider the relationship between the surrounding residents. If you dare to build a mine of a certain scale in the community, the neighbors will certainly demolish it for you, unless you are a local tyrant< 5. Control technology risk. Bitcoin mining is mainly a technical problem in engineering, but the professional technology of bitcoin itself is not the key. You need project management talents, electricians, construction engineers and computer room construction talents. Although this knowledge is not complicated, experienced people can help you rece costs and control risks
is there any risk in investing in bitcoin? Bitcoin is very close to Ponzi scheme; Bitcoin has no price limit, and its market has always been like a roller coaster. The early recipients of bitcoin have a great advantage. If the follow-up funds stop entering this field, bitcoin cannot continue to appreciate. We should not be blindly confident, let alone gambling.
it is understood that because bitcoin trading is not under the supervision system of banks, it is easy to be used in illegal activities, such as money laundering and drug purchase
at present, most countries, including China, have no clear attitude towards bitcoin regulation, except that Germany has made it clear that bitcoin is legalized and Canada has created the first bitcoin ATM. At present, there is still a lack of supervision on bitcoin in China, and the existing laws and regulations are not fully applicable to the supervision of bitcoin
e to the uncertainty of policy, some people in the instry are worried that every time the regulatory authorities take action, the price of bitcoin will fluctuate sharply, and there are risks in future hedging
2. The practical value of bitcoin is not high
the future development prospect of bitcoin largely depends on whether its payment function can be well reflected. Zhang Yuewen, a researcher at the Financial Research Institute of the Chinese Academy of Social Sciences, previously said that bitcoin does not play the core function of money payment, but only exists as an investment proct. If one day bitcoin can't be exchanged with the major currencies in circulation in the real world, it's worth less than a piece of waste paper
3, trading platform run away
however, bitcoin trading website is very fragile, the website may be attacked by hackers or shut down by competent authorities, and website operators may also run away with money, which may cause losses to the holders. At the end of October 2013, GBL, a trading website that was once popular in the bitcoin circle, suddenly shut down. Before most users had time to withdraw the funds from their accounts, GBL had already run away. According to incomplete statistics, there are about 500 victims, and the estimated loss may exceed 20 million yuan< 4. Control environmental risk
you also have to consider the environmental factors. mining machinery is not a zero emission equipment, which will create a lot of noise and heat. In this way, you have to consider the physical and mental health of the operation workers, and you also have to consider the relationship between the surrounding residents. If you dare to build a mine of a certain scale in the community, the neighbors will certainly demolish it for you, unless you are a local tyrant< 5. Control technology risk. Bitcoin mining is mainly a technical problem in engineering, but the professional technology of bitcoin itself is not the key. You need project management talents, electricians, construction engineers and computer room construction talents. Although this knowledge is not complicated, experienced people can help you rece costs and control risks
is there any risk in investing in bitcoin? Bitcoin is very close to Ponzi scheme; Bitcoin has no price limit, and its market has always been like a roller coaster. The early recipients of bitcoin have a great advantage. If the follow-up funds stop entering this field, bitcoin cannot continue to appreciate. We should not be blindly confident, let alone gambling.
9. I don't think it will rise, unless there are big funds coming in
Hot content