Why virtual currency suddenly plummeted

1. The value of virtual currency is reflected in "more people recognize it". At the beginning of any instry, there will be savage growth. Take bitcoin as an example, the peak price of bitcoin is close to $2W, and the current price is only about $6500
in the current situation, blockchain is not a mature technology. What the market values is the so-called prospect, and it will take time to improve and excavate it slowly. However, the collapse of virtual currency is just a return to its own value
in short, I think bitcoin will continue to grow slowly after falling below a certain price. The current slump is just that the funds attracted by the previous heat have discovered the characteristics of virtual currency (hacker attack, dealer trading, these two situations will probably only appear in the newly issued currency, which is determined by the characteristics of blockchain, in other words, Hackers may also attack bitcoin in the early stage, but the more people and nodes bitcoin enters, the lower the probability of this situation, and the more difficult it is to generate)
in addition, I think that a large number of people in China even don't know what bitcoin is, so they are ready to make a fortune with money.

2.

Stupid tax

reason 1: the volatility of virtual currency is too large to become a trading means. The huge volatility problem is structural e to its fixed supply and unstable demand. The flaws in this design mean that it will not be a winner in the cryptocurrency war

reason 2: the energy consumption of virtual currency mining is a waste

reason 3: the security of virtual currency is weak, and quantum computing may make it worse

reason 4: the rise of virtual currency promotes illegal activities and redistributes wealth from the formal economy to the shadow economy. It's only a matter of time before the government gets involved

partial topic

My IQ ensures the safety of my basic property; My appearance further ensures the safety of my trip

3. To be honest, I may come into contact with bitcoin later than many of my peers, but I'm one of the quickest people to make a decision to join the instry. I learned from the news that Jet Li's one foundation was grateful to the enthusiasts who donated bitcoin. After less than ten minutes of thinking, I immediately decided to put down 90% of the projects I had completed and devote myself to this instry with incomparable prospects. I am a technology controller. Although I am not well-known in the Internet instry, I have operated no less than 10 it projects, and have cooperated with or established 7 companies. Among them, there are also successes and failures. The only instry that has not been involved is group buying, because I thought from the beginning that group buying deviated from its original appearance and would not be a very promising instry. But after learning about bitcoin, I feel that I have found a window, a window to the palace of ideals, a way to change the world. Today, I still insist on my choice, but the real use value of bitcoin in China is rarely reflected except for its speculative property. After multi-party analysis, I think the short-term downward trend is irreversible. Let's list the following factors that cause the price of bitcoin to fall:
first, the excessively free market - the copper price killer
bitcoin is born for freedom and lives for freedom, which has created a group of bitcoin fans who are crazy about pursuing freedom. The decentralization of the bitcoin exchange has been rampant for a time. The current situation of no supervision of the bitcoin exchange is obvious to all, and it can not be solved by itself, such as the forever anonymous dark village, the disorderly competition of mining machinery, etc. these important factors that are often ignored by people are also important drivers of the price drop
just think of the capitalist social system in the early days. People had great expectations and perseverance. They could sacrifice their lives for freedom and cut the rope on puppets at all costs. During the transition from feudal socialism to capitalism, people were like holding on to the water for several generations, suddenly came out to breathe fresh air, and no one was allowed to press themselves into the water again, The result is a social system of excessive freedom. The result of excessive freedom is that once someone obtains certain resources and social advantages, he can quickly devour everything around him like a black hole, forming a monopoly and giving birth to an oligarchy. They don't care about other people's lives, just like gladiators. If you lose, you have to bear all the consequences; If I win, I can enjoy some honor. But after all, oligarchs are a minority. Society is made up of thousands of ordinary people, so the system made up of people must be unstable and unreasonable. Therefore, modern capitalist society has learned to compromise. After learning from many advantages of capitalist society at that time, it is found that there are anti-monopoly laws, various anti-commercial bribery and other daily laws for proper supervision, In order to effectively delay the outbreak cycle of the financial crisis
the reason why so many words are used to describe capitalist society is that bitcoin has too many similarities with it. A brand new financial system does not depend on specific institutions or indivials, but also depends on all participants. With it, we can eliminate all external influences and keep our wallets. It's a great idea, but what about the reality? Holding a large amount of bitcoin, amzhuang can control the price of bitcoin. In the capital market, 1 billion yuan is only a very small amount. For the bitcoin market, it is enough to control the price rise and fall of any exchange, back and forth volatility, commonly known as "fleece". Easier said than done, as like as two peas in the market, you will be able to control the bitcoin in your hands. But you have to be in the market. For these makers, they can benefit from the ups and downs, because in the trend of the rising market, they will increase ring each shock period, and fall more every time the market falls. At the top of the pyramid, there are always only a few people
after more than a year of communication with players in the instry, we found that those who are still left behind are either deeply covered or persistent believers. Even if they are covered, only a few of them are entities. Most of the left behind are pure it houses, and they blush when they meet. Most of them have no financial experience, even few of them have speculated in stocks, so they are in shock, It's certain that Xiaosan will be injured< Another important factor is that, like stocks, the amount of cash in circulation is far less than the total value. Although several exchanges have not announced the amount of bitcoin and the total amount of RMB assets, it can be concluded from the data of mtgox's bankruptcy that the amount of cash announced by mtgox is US $40 million, Bitcoin is worth US $450 million, reaching a staggering 1:11. According to my preliminary understanding, the general comparison of domestic trading platforms is between 1:3 and 1:6, which is slightly better than mtfox, but it is also enough to illustrate the problem. Once the bear market comes, the power of shorting is far greater than that of long
although the stock market did not rise sharply last year, many people did profit from the stock market and attracted many of the few users who swayed between the stock market and bitcoin. Many of the professional investment users and deep-seated users who benefited from bitcoin also left the bitcoin instry for various reasons. The big reason is that for bitcoin, They think that in addition to speculation, it is a game played by technical talents. Although this is a misunderstanding, let's think about it from another perspective. If you are an investor outside the IT instry and face the world's largest trading platform, you will go bankrupt if it goes bankrupt. If bitcoin is stolen, it will be stolen without supervision and responsibility. What would you think? Therefore, the reason for today's situation is that the number of bitcoin has not decreased, but the capital is decreasing. Although there are many foreign advantages ring this period, the domestic situation has been declining. This is an indisputable fact
with the decrease of funds, long has lost enough momentum. The reason why there is no sharp decline is that there are still a number of bitcoin loyalists. Some of them have been engaged in bitcoin for several consecutive years, and almost every year they have to experience a similar slump. Therefore, they still firmly believe that this year is just a repetition of the market rules of previous years, and the final price will rise; Of course, I personally believe that in the long run, the trend of bitcoin will go up, but is it half a year or three to five years? I'm really not sure, because the biggest constant in the world is change. As the saying goes, the flowers are similar year by year, but the people are different year by year. The past experience may not be applicable to the present< Third, domestic policy - gold price killer
I don't know if the Americans have understood that it was not Japan, the United States, Europe, but China that decided the price of bitcoin in 2013. Made in China used to be a headache for foreigners. Now, they also realize the power of China's speculation. China's real estate speculators are like locusts everywhere they go. At present, China's speculators are also rapidly overdrawn the growth value of bitcoin. China, which has 80% of the world's trading volume, explicitly forbids the value of bitcoin as a medium of exchange, so it has no real value in China except for speculation
I believe that the world's understanding of the power of Chinese speculators in bitcoin began with the documents of five ministries and commissions, because before that, almost no organization participated in the international bitcoin conference. After that, many foreign media swarmed in, professional and unprofessional media came. This time, although the documents on April 15 have not been confirmed, the financial times interviewed bitcoin in advance, which shows that they recognize the power of Chinese speculators
why is an Internet proct that started in foreign countries so influenced by China's policies? This is not its main application place, which just reflects that the price of bitcoin is seriously out of its actual value line, artificially pushed up and overdrawn its value. In my opinion, without CCTV's report and China's participation, it would have been good for bitcoin to have a price of more than 1000 last year. It was also e to excessive attention, which created the fastest five ministerial documents in history< 4. Crazy miner - the ultimate price killer
the computing power of bitcoin miner has increased from 1p at the end of last year to more than 30p now. In less than five months, the price of bitcoin miner has dropped from 6000 to 2700 today. In other words, the number of miner has increased dozens of times, from CPU to motherboard, power supply, power supply, etc The chassis and processing costs are all paid in RMB. Just imagine how much cash flow the mining machine has taken from the whole bitcoin ecological chain. Once the cash flows into the hands of TSMC, motherboard factory and others, it will never be kept back. This is also the result of disorderly competition, once profitable, the number will never end! It is said that Shenzhen proces 90% of the world's computing power of mining machines, and each time the chips are streamed, the chips are less than 3.5 million, more than 20.3 million, not to mention the whole machine. A mining machine manufacturer I know in Shenzhen club said that he sold 1000 USB mining machines a minute, which shows the madness
to sum up, all aspects have exerted pressure on cash flow, so the continuous decline of bitcoin in the short term is caused by many reasons. Even without the 4.15 document, I believe a continuous decline process will be formed. As for the bottom, it depends on the belief of those who still hold fast to it and when the crazy mining machine will not continue, And the actual application of bitcoin in foreign countries
those who played with stocks in 2008 may find that bitcoin shares a striking resemblance to the price trend of stocks. If bitcoin goes up from 2000 to 5300, any good news, even an additional issue, will make stocks soar all the time. After that, although the stock surged to the highest point, the downward trend was like "defeat like a mountain". Any bad news would cause a decline. Coupled with the excessive issuance of new shares and serious overdraft of market cash, the a share once fell back to about 1600 points. Although it rebounded to more than 3000 points, it would still jump to about 2000 points. After several years of shock, it did not improve
bitcoin plate is small and easy to rise and fall. However, if the retail investors are excessively injured, bitcoin's loyalty can only be powerless to let bitcoin rise. The false rise of the makers will face a lot of market capital pressure and can only follow the trend
at present, there are several companies in the whole instry that can support short selling, such as fire coin, China bitcoin and okcoin, which also aggravates the dection process
of course, I am still very optimistic about the long-term development of bitcoin, but I really can't see how to break the current deadlock. The purpose of this article is to provide some personal opinions for the majority of small businesses. Maybe you are more in-depth and complete than I think, but finance is nothing more than that

4. The most direct cause of the crash: the bitcoin exchange MT GOx was attacked by hackers, causing a lot of panic selling of bitcoin by investors
in addition, the underlying reason is that the world does not recognize the monetary payment property of bitcoin, but regards it as an investment commodity similar to gold, and even has large-scale capital participation in speculation.

5. The reason why the price was raised in the early stage was to cheat the people into buying. The reason why the price fell needed a reason, so it fell sharply. The people who bought in the early stage paid for it, which was expected.

6. Well, I have the full version. Click on my avatar~~

7. Yes, it can always be invested.

8.

The qualification license of game text includes the issuance of virtual currency. The issuance of virtual currency is within the business scope of the text. At present, the approval of game text has been suspended. If enterprises want to use this certificate to operate, they need to buy shell companies

certificate case

9.

The sudden drop is e to various reasons. The first is the policy supervision problem

According to Yingwei financial news, several online reports attributed the decline to market speculation that the US Treasury Department may crack down on money laundering through digital assets. It is understood that US Federal Reserve Chairman Powell recently publicly said that he does not support virtual currencies, and he believes that they are not really actively used for payment

in addition, European Central Bank President Lagarde in January this year aimed at the role of bitcoin in promoting criminal activities, saying that the cryptocurrency has been promoting "interesting business"; The Central Bank of Turkey has issued "Regulations on the prohibition of encrypted assets in payment", announcing that payment with cryptocurrency will be prohibited from April 30. The government also pointed out that cryptocurrency wallets are easy to be stolen, and irreversible transactions are also worrying

in March 2020, the Supreme Court of India rejected the Central Bank of India's 2018 policy of prohibiting banks from participating in cryptocurrency related transactions. This news led to the influx of Indian investors into the cryptocurrency market, but then, the Central Bank of India once again expressed concern about cryptocurrency, and some officials disclosed that India will propose a new bill to ban all cryptocurrencies...

policy regulation has always been the most serious problem facing cryptocurrency, and in addition to that, The CEO of coinbase just mentioned above cashed out 290 million US dollars by selling the company's shares, and the accumulated internal cash out exceeded 4.6 billion US dollars; Alexia Haas, chief financial officer of coinbase, cashed out about $99.32 million at $388.73. All of these actions have caused instry panic

extended information:

there are many advantages. Cryptocurrency is in a bull market recently

in the last two months, cryptocurrency Market has seen a collective rise and prosperity. Take bitcoin as an example. Since it broke through the $50000 mark again in early March, the price of bitcoin has been steadily higher than that level. Bulls even pushed the price up to an all-time high of nearly $65000. Behind this, it is the news that PayPal has entered the field of cryptocurrency, and more importantly, it is the attention of traditional capital

In February this year, JPMorgan Chase, the largest financial services institution in the United States, will launch JPM coin, an encrypted digital currency, to settle payment transactions between customers in real time; Big banks, including Goldman Sachs and Citigroup, are also expanding their services to cryptocurrency

10.

the fire of virtual currency, many people join in the hype of virtual currency, but virtual currency is unreliable, mainly because:

1. many virtual currencies are air currency

2

3. Exchanges are all indivial enterprises, which have the risk of running away

since the advent of virtual currency, it has been favored by many investors, which has led to the price rise of many virtual currencies. Among them, the price of bitcoin has risen to tens of thousands of dollars. Under the hype, the price of other virtual currencies is also rising. From the beginning of virtual currency trading, it has soared hundreds or even thousands of times, But it just shows that virtual currency is worthless and unreliable{ RRRRR}

3. Virtual currency exchanges are all personal enterprises, with the risk of running away< p> If virtual currency wants to be traded, it needs to be traded through virtual currency exchanges. These exchanges are all founded by indivials or enterprises, and they have no ability to bear risks. Some exchanges even want to cheat people. After users recharge, they try to pit customers

from internal value to external use, virtual currency will not create any value and has no security. If you have any other opinions, please leave a message to discuss