Why is the premium so high
The reasons for the sharp rise of bitcoin are very complex, mainly e to the continuous admission of institutional users through the compliance channel. In short, many bitcoin holders do not really understand bitcoin itself, but just regard it as an investment proct with huge profits, but ignore its risks
the concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system
unlike all currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation
e to the decentralized programming of the bitcoin system, only 25 bitcoins can be obtained every 10 minutes, and by 2140, the maximum number of bitcoins in circulation will reach 21 million. In other words, bitcoin system is able to achieve self-sufficiency, resist inflation through coding, and prevent others from destroying these codes
Speaking of many investments nowadays, maybe many people are more and more inclined to stock funds, and will hold some gold bitcoin and so on. In fact, in many cases, this type of investment also has risks, so we need to have a good investment habit no matter what. Recently, in the bitcoin transaction, It can also be seen that many people began to buy, and he made history and was the highest. What happened
at the same time, in grayscale, in addition to GBTC, there are some other procts that can be traded. The price of these cryptocurrencies, such as Ethereum, lightcoin, bitcoin cash and so on, has become a large scale
what is the value of GBTC? How to interpret its meaning
stock market and currency market are two different markets. Although they are related before, they are not exactly the same. In the past, it was not feasible to invest in the digital currency of blockchain in the traditional stock market. But now there is a new way, the gray bitcoin trust (GBTC), which enables us to participate in the trading of bitcoin in the stock market. The principle is that the gray bitcoin trust (GBTC) holds a large amount of bitcoin. The value of GBTC is close to the value of bitcoin and will change with the price of bitcoin
at present, gray bitcoin trust has 6.5 billion US dollars of bitcoin, and it is a private investment. Gray bitcoin trust is a company in the United States. At present, it is the largest buyer in the world. It was launched in 2013, and it has been seven years since, The development speed is very fast.
detailed explanation of the operation mode of gray bitcoin trust (GBTC):
when an investor values GBTC and wants to buy a large amount of it, he can grab the investment fund of the foundation. The fund of the foundation can be used by investors to buy a large amount of bitcoin. After the gray bitcoin trust (GBTC) is listed on the stock exchange, Any investor who opens an account in the stock market can trade GBTC on the stock exchange. It should be noted that the price of GBTC fluctuates with BTC. The price of GBTC is close to BTC, but it is not entirely BTC. The subtle influence between the two systems determines this characteristic. At present, the price of GBTC is higher than that of BTC, and there is a certain premium. For early investors, the premium means profit, but for current investors, the premium increases the risk of current investment
why don't we buy bitcoin directly, but buy gray bitcoin trust (GBTC)
1, do not consider the security issues such as bitcoin storage
2, do not consider the legitimacy of large-scale holding, have tax incentives
3, bitcoin can not directly trade with traditional stocks, but GBTC can
Since 2020, bitcoin has changed its previous stability and its value has soared. Although there has been a slump ring this period, it has not prevented bitcoin from reaching a new peak
the more investors, the larger the scale of purchasing bitcoin. Data show that in 2020, a total of 347000 bitcoins will be bought in addition to emerging investment institutions such as gray scale, Wantong mutual, an old American insurance company, and PayPal, a financial technology giant, are also powerful giants in the bitcoin market therefore, today's bitcoin market is a "game" platform for financial giants, and ordinary retail investors should be cautious in their investment
Since the birth of bitcoin, its price has risen from a few cents to a maximum of $20000. Although it has dropped a little, it has soared to $18000. This price surprised many people. Why is bitcoin such a virtual digital currency so valuable< the quantity of bitcoin is limited, so the price is relatively expensive. Because bitcoin can be anonymous, many people use bitcoin to hide property or trade. The speculation of bitcoin players leads to the high price of bitcoin Bitcoin is a decentralized virtual digital currency, and bitcoin is generated based on algorithm, so the total amount of bitcoin will not exceed 21 million, and with the increase of mining population, bitcoin will be less and less, so the price of bitcoin is more expensive than other virtual currencies{ RRRRR}
the reason why bitcoin is valuable is that it has replaced part of the currency function and some people have speculated. If you have any other opinions, please leave a message to discuss
first, many institutions are buying bitcoin recently, and their actions undoubtedly give most retail investors the confidence to buy. After all, since the epidemic, everyone has been pursuing a safe haven asset, and the relevant properties of bitcoin are more in line with this condition, In addition, bitcoin's ability to cope with inflation is obvious to all
secondly, bitcoin has just experienced a halving in May this year. Generally, the rise and fall of the halving effect graally appeared in the following months, but now it is just a little obvious
thirdly, the promotion of digital RMB helps the society to enter the era of digital currency more quickly, and it is expected that bitcoin, as a leader, will improve its value
fourthly, more young people are in favor of bitcoin, and the recognition of the masses is the power of value promotion.
The rapid rise of bitcoin's price comes from the fact that its use value is graally recognized by popular business services such as green ecology. For example, Jack Dorsey, the founder of Twitter and square, made a high-profile promotion and planning of BTC in Silicon Valley in the United States, which is also called the original ecological currency of the next generation Internet technology, and announced the purchase of $50 million BTC< naturally, apart from the Internet technology circle, it is also like the BTC Private Fund released by grayscale, a financial enterprise, which helps traditional financial enterprises get BTC financial planning
at present, the total position cost of BTC commodity futures is about 6.3 billion, which has increased 133% since the beginning of this year and constantly updated new historical records. Unlike the spot trading market, the increase of non compulsory position closing trading position of derivative procts in zero sum game indicates the contradiction level between buyers and sellers on spot trading base price
1: value is the so-called currency born from the early decentralized blockchain Technology (in fact, the capital owns the centralized computing power, and the capital owns the centralized currency quantity, which may not be ideal here). At that time, people had certain expectations and beliefs. The decentralized low trust cost world chase was a good future imagination, which made most people recognize its value (of course, it also caused negative use value, which could not be controlled and regulated by the government, and provided a lot of extra convenience)
of course, some attributes of digital currency can be used for reference, Now countries are also in the trend of legal digital currency. Due to certain technical reasons, BTC may eventually disappear, or it is difficult to achieve the vision of believers. If there is no better change of technology, the limitation of technology will be phased out with the current development of science and technology
2: of course, the price is basically determined by market transactions. BTC is used by a lot of capital, and more value may be used as financial value Another common perception of price is that the quantity is limited and the output is getting slower and slower. With the increase of the use area, the scarcity increases the price, and the story of halving the price is also a good help for capitalists)
because it is a minority, there is no regulation, so the power of capital has a great impact on the price. The good effect of getting rich can attract more and more people to come into the market. The exchanges of various capital institutions have solved the problems of business instry, gained some additional operating income, and created instries (such as basic financial derivatives and more)
including this year's events, with the epidemic situation and the situation in the United States, new financial derivatives are manufactured by joint institutions. In the secondary market, a new circular wealth story is born. This mode is still relatively solid, with stable prices and rising prices. Of course, the final digester is the ordinary people
at the same time, the characteristics of BTC also lead to a part of human allocation of hedging assets
and so on, the price of BTC is proced under the game
personal final conclusion (for reference only): bitcoin is more of a kind of financial value, its use value is still limited at present, and it is also very difficult to promote in the future. If the technology does not evolve, it will still be small. Of course, the game of the world government is also a certain resistance
the current price is based on the financial game of institutions, and it is stable to a certain extent. The premise is that if there is no new large number of people participating in the game, the current rising trend will slow down, and the gray scale and institutions are also expanding the playing methods of other digital currencies (after all, the number of BTCs targeted by GBTC has accounted for more of the total BTCs - physical contribution plus less cash contribution), But there may still be a rise, but when it will be the top depends on the results of various games (I think there are several points: 1. How long can the game between the trading frequency and holding amount of BTC or other currencies in the primary market last, and when people's purchase and consumption will reach a limit. It can't be bought and sold all the time, there is a limit when what the 2. gradation and what the BTC of the GBTC corresponds to is the two level market digestion of the market, when it will be indigestion is also a game... Etc.)
BTC has bubble, and the financial game of capital is full of bubbles. Of course, this is the opportunity to get rich easily.
but the risk is very high, which is not suitable for the public. It can only be said that it depends on fortune and opportunity
BTC has big moves with every financial trend game
investment should be cautious.