Virtual Currency Is Also Crazy, Bitcoin Rose 62% In Half A Month

Bitcoin (Bitcoin: bit gold) was the first Internet virtual currency, similar to Tencent Inc's QQ, but it could already buy real-life items.

It is characterized by decentralization, anonymity, and can only be used in the digital world. It does not belong to any country or financial institution, and is free from geographical restrictions and can be exchanged anywhere in the world.

Recently, influenced by factors such as exchange rate fluctuation and scarcity, bitcoin has staged another wave of price inflation, and buyers' enthusiasm for virtual currency has been rekindled.

Related trading platform data show that from the end of May to the middle of June, bitcoin prices rose by 62.8%, prices in recent days began to decline significantly, the volume of pactions in June increased by about five times.

The current virtual currency boom driven by bitcoin is closely related to the complex investment ecological chain behind it.

Due to the introduction of leverage mechanism, some virtual currency speculation has been reduced to the implementation of Ponzi scheme in the pseudo Internet financial platform, which has cast a shadow over the development prospects of virtual currency.

However, as a basic technology to support virtual currency, the concept of block chain is increasingly attached importance to by financial institutions.

In the capital market, listed companies have begun to buy heavily block chain technology related projects, and the related concepts of block chain technology have been sought after by capital.

Bitcoin speculation comes back

From 2013 to 2015, a virtual currency hype represented by bitcoin went through the roller coaster market from the crazy to the plunge in the dispute. At that time, the price dropped from 8000 yuan to 90% yuan, and the price evaporated more than $1000.

But just after the bubble burst, the crazy market of virtual currency seems to be coming back again.

Domestic family

The price of trading platform fire currency net shows that the bitcoin market started in May 27th, when the price was near 3000 yuan, and only 22 trading days rose 62.8%.

This year, bitcoin prices have risen 78%, compared to the lowest level of 900 in January last year, up 445.6%.

Another bitcoin trading platform OKCoin data analysis said that in June 20th, bitcoin price intraday high up to 767.08 U.S. dollars, breaking through 5000 yuan, a new high since the beginning of 2014.

But prices fell sharply in the next few days.

Compared with May volume, the overall increase in bitcoin trading volume in June was nearly five times.

With the development of bitcoin market, its derivatives market has begun to develop rapidly, and other alternative virtual currencies of bitcoin form a fierce competition, and hype is also heating up with the heat of the market.

It is understood that at present, Wright coins, Ethernet coins, quark coins, Zeta coins are all popular virtual currencies in the network platform, there are a number of buyers and follow suit crowd, and market fluctuations are also very frequent.

For this round of bitcoin skyrocketing reasons, Xu Mingxing, the head of the trading platform explained that because the pre bitcoin and the underlying block chain technology were widely concerned by the world, financial institutions are exploring the application of block chain technology, making bitcoin more and more attention in the world.

"At present, many players are expecting a strong reduction in the rate of bitcoin, leading to a sharp rise in bitcoin prices.

And the price increase has attracted more buying into the market, further stimulating the market surge.

Market participants believe that, judging from the current situation of financial market, affected by the risk factors such as slow global economic growth and fluctuation of RMB and US dollar exchange rate, most institutions are actively looking for security assets other than traditional investment products such as stocks, bonds, real estate and so forth. The emergence of virtual currency such as bitcoin also provides investment outlet for some high risk preference funds, which makes the speculation of virtual currency Kindle like a spark.

Skyrocketing and plunging risks

Whether in the past or in the present, virtual

Behind the ups and down quotes are inseparable from the speculation of investors.

Compared with the virtual currency market represented by bitcoin in 2013, the investors' ecology behind them is more diverse and complex.

According to the insiders, with the increase of national wealth and the gradual enrichment of asset investment targets, Chinese investors favor the virtual currency market with obvious "creating wealth effect".

The data showed that by the end of 2013, the exchange rate of RMB accounted for more than 67% of the whole bitcoin market, and this round of Renminbi trading volume accounted for a maximum of more than 90%.

The data of the fire net show that as at 18 hours in June 19th, the accumulative volume of the platform has exceeded 1 trillion and 60 billion yuan.

Judging from the market situation, in recent 20 short trading days, it seems that the bitcoin can get more than 60% of the proceeds. For investors, the virtual currency market is more attractive than the real estate market with huge investment and fluctuating stock market.

Familiar with the analysis of virtual money market, the current RMB denominated price of bitcoin has been higher than the overseas market, which means that the demand of Chinese buyers for bitcoin is very strong. China's bitcoin price has at least 10% premium.

From the perspective of investor ecology of virtual currency, there are both programmers who get bitcoins purely through "mining" technology, and also makers of speculation trading, and ordinary investors who invest in a big wave.

An investor who once participated in the virtual currency speculation said frankly that the principles of bitcoin pactions and the technical risks involved were not very familiar with them. The bitcoin pactions he understood were actually investing in stocks, and he saw that profits and soaring prices were buying in the same direction.

In addition to bitcoin, some other categories of virtual currencies have also received wide attention, and all kinds of private platforms are booming.

A third party virtual currency trading platform analysis, due to the bitcoin market, the current number of other currencies virtual currency platform trading volume also rose significantly.

Due to the existence of differentiated competition pattern, when the bitcoin appeared high sideways, the market like virtual currency, Wright currency and other virtual currencies began to become active.

Small virtual currency, the price is higher than the buyer's funds.

However, behind the hot market, the risk of speculation is also worrying.

A senior player of bitcoin revealed that every round of market activity is inseparable from leveraged pactions, and many domestic bitcoin trading platforms will provide leverage for participating investors.

Under the leverage effect, the acceleration of market speculation will also lead to a sharp rise and fall of bitcoin, which is often unacceptable to ordinary investors.

At the same time, due to the lack of supervision and legality, there is a fake trading platform under the guise of "virtual money management" for illegal pyramid selling and illegal fund-raising. Many investors who are lack of judgment have been deceived into the Bureau and personal property has been lost. This also makes the speculation of virtual currency wandering in the gray area of regulation.

In addition, the security of virtual currency trading platform is also subjected to torture. Once the firewall of the platform trading system is hacked by hackers, the large amount of funds left on the platform will be lost, and the price of virtual currency will fluctuate accordingly. The risk factors are worrying.

The concept of block chain is sought after.

As a person in charge of a virtual currency trading platform said, this rising market and the underlying technology supporting the bitcoin, the concept of block chain technology, are directly recognized.

Recently, many commercial banks and financial institutions in the world have begun to study the commercialized application of block chains, which has raised the status of virtual currency.

Some scholars point out that with the help of block chaining technology, many financial businesses will "de centralization" to achieve real-time digital pactions, such as point to point direct pactions in securities trading, cross-border payment and settlement, etc.

According to McKinsey's calculation, the application of block chain technology in global B2B cross-border payment and settlement business will reduce the cost of each paction by about 40%.

In the capital market, it has benefited from the hot concept of block chain. Many venture capital and private equity capital began to focus on the block chain market, thus giving birth to a number of enterprises around the block chain technology application.

In June 22nd, it was reported that Baidu and China Everbright invested $60 million in a US bitcoin start-up company.

It is reported that at present, Hangzhou has already started to focus on R & D bitcoin mining technology and related information data service platform, or the introduction of block chain technology to the Internet financial field to ensure the security and authenticity of platform pactions, and the related projects receive high capital attention.

In the case of many optimistic about the application prospect of block chain technology, listed companies also praise the concept of block chain and virtual currency.

Recently, a listed company in Shandong announced the announcement of the restructuring announcement. It plans to buy a company that made chips for bitcoin "miners" by issuing shares and paying cash together. The price is 3 billion 60 million yuan.

Securities research and development report said that if the merger and reorganization plan passed smoothly, the listed company will become the first unit of A share market "block chain + artificial intelligence" and become the leader of block chain concept stock.

However, there are also some market participants who question that the above takeover plan does not exclude the concept of "bitcoin" that the listed company caters to the market, so as to carry out relevant capital operation.

Due to the warming of virtual currency and the chasing of capital chain chain concept, from the middle of May, the "block chain" concept plate in the two tier market also started immediately, and the concept of block chain gradually entering the draught also attracted a lot of market capital participation.

From the performance of the two tier market, from mid May to now, over the past month or so, the concept of block chain stocks rose dramatically.

Stimulated by the news of the acquisition of bitcoin related items by listed companies, in May 17th, more than one concept stocks went red across the board, and some stocks opened up to a daily limit. The average increase was over 5% on that day.

Although the market index showed a trend of concussion in the same period, these stocks involving the concept of block chain still gained multiple trading boards on different trading days.

Many brokers have increased research in this field, making the concept of block chain heating up obviously.

State Securities (600109, stock bar) said that block chain provides a good direction for the development of value Internet, and provides the underlying block chain security storage system for various applications.

Under the demand of various fields of value Internet, the performance of underlying protocol will be optimized gradually. It is expected that more block chain underlying platforms and applications will emerge in the future, and the development process of the industry will be far ahead of market expectations.

Anxin Securities believes that the block chain is expected to become the infrastructure of the next generation Internet. The financial IT company of A shares will become an important participant in "block chain + finance" with its deep understanding of financial business.

However, some people in the industry have suggested that the development of block chain technology is not up to expectations, or that the application process of block chain is not up to expectations, which will be a matter of close attention to the capital market. It is suggested that investors understand the technology development status of the block chain first and then "enter".

If we do not have a more comprehensive understanding of the digital currency, if we simply follow the expected price rise of the concept stocks, the risk of investment can not be ignored.

Anyone can start a bitcoin trading platform and develop a trading platform, which is no different from developing traditional websites.

Any bitcoin trading platform will become a target for hacker attacks.