Blindly chasing Bitcoin? Don't be stupid!
Tahara
The new crown pneumonia epidemic has severely damaged the foundation of global growth, coupled with the lack of financial supervision and the failure of global governance, Bitcoin, which is volatile, speculative, and risky, has shown a dangerous tendency to deviate from the fundamentals of the global economy.
At the beginning of the New Year of the Ox, the "coin circle" has risen again.
On February 23, Bitcoin failed to sprint to the $60,000 mark, and instead plummeted by more than 20% from its historical high of $58,332.
Bitcoin's "roller coaster" market has caused heavy losses for many investors who "follow the trend".
Against the background of the absence of financial supervision and the failure of global governance, the flash crash of Bitcoin, which is volatile, speculative, and risky, is only a matter of time.
What are the risks of cryptocurrencies represented by Bitcoin?
First, the legitimacy is still in doubt.
Currently, only a few countries allow investment in cryptocurrency, and there are only a handful of countries that regard it as a currency.
The financial regulatory authorities of most countries still have high doubts about the legality of cryptocurrencies, and even ban them from being used for payment and settlement.
Yellen, the new US Treasury Secretary, believes that the important hidden dangers in the legality of cryptocurrencies will cause investors to suffer losses.
Second, high volatility impacts financial market stability.
A survey by the international research organization Gartner shows that more than 95% of corporate executives still refuse to use Bitcoin as a corporate reserve asset this year. The reason is that its roller coaster-like market discourages prudent investors, but gives speculators room to make waves.
Third, the rising tendency of bubbles has pushed up global economic risks.
From a few cents to nearly 60,000 US dollars, Bitcoin only took 11 years.
Today, the total market value of Bitcoin has exceeded the trillion U.S. dollar mark, which is equivalent to the annual GDP of Indonesia, the world's fourth most populous country.
It seems that the investment prospects are great. Once the bubble bursts, the takers, especially small and medium investors, will suffer heavy losses.
What's more worrying is that, driven by the entry of Wall Street institutional investors, Tesla and other entities in the real economy have even experienced the odd thing that the book income of investing in Bitcoin exceeds the profit of its core business of electric car sales.
There is only a thin line between absurdity and seriousness.
The thickness and depth of this “first line” depends on whether investors’ judgments on economic fundamentals are accurate and whether they are effective in discriminating the so-called “collective beliefs”.
Cryptocurrency is a typical emotion-driven asset. Its market value is mostly determined by group emotions rather than based on value. Social media is transforming group emotions about cryptocurrencies into collective actions in the financial market at an unprecedented speed and scale.
In short, the price of Bitcoin really depends on how much people are willing to pay.
However, under the background that the new crown pneumonia epidemic has severely damaged the foundation of global growth, this round of "coin circle" confrontation between empty and long is like duckweed on the lake. It not only lacks a solid foundation and continuous motivation, but also increasingly shows that it is manipulating the market with a changing narrative. , To shape the collective consciousness such as the "financial miracle" and deviate from the dangerous tendency of global economic fundamentals.
Blindly chasing Bitcoin?
Don't be silly!
Even Musk, a loyal Bitcoin fan, has recently called on investors to be cautious.
After all, the old saying goes well, "When the tide goes down, you will know who is swimming naked."