Bitcoin: The game of the smart “sharks”

By breaking the record $ 64,000 recently, Bitcoin has turned many investors into billionaires over the past 12 years. With all levels of emotions, sadness, joy, calm, fear, suspense … and even death, the attractiveness of Bitcoin and its derivatives makes it difficult for many people to give up. play this.

” Bitcoin is a silly thing in the economic sense, it shouldn’t be optimistic about a deflationary financial system, ” said one investor. But he will still choose to invest in Bitcoin, and the reason is simple because it is easy to make money. After all, this is a game of ” beating the drums, spreading flowers “, human weakness is like an inherent perpetual movement machine, no one wants to see the drums and flowers stop in their hands.

Bitcoin was initially a delight for tech enthusiasts and Internet users, but now Wall Street elites can also smell the breath of money.

After the financial crisis of 2008, the new elite generation of Wall Street lived in “catastrophe”. The best brains in the world are revolving around Wall Street and not many people are satisfied with salaries of hundreds of thousands of dollars a year. They don’t want to be small fish.

It is difficult for these smart people to have goodwill, and the digital currency has become a sharp knife in their hands. The elites at the bottom of Wall Street are “escaping”, but the players above have calculated more deeply to create a deep hole that they themselves do not know how many people fell there.

Perhaps this ability to inflate capital has long been etched into the blood of Wall Street, standing on the cusp of wealth, the essence of every financial transaction no different than symbolic exchanges. And every financial game is no different than using a model to bet the market’s ups and downs.

In other words, the “misguided” elites on Wall Street use Bitcoin only as a money-making tool and this model is how they make good money.

From a full cycle perspective, high volatility in currency prices is also normal. Over the past 12 years, Bitcoin’s price has touched the hearts of countless people like a roller coaster. The bubble burst, weakened down, bounced and fluctuated alternately. The sudden increase or decrease is not only a response of market sentiment, but also typical of a macro trend.

In 2013, after most European countries rushed to issue a policy of issuing digital currencies, the price of Bitcoin exceeded $ 1,147 – then dropped to $ 200 in 2015 and back to $ 1,000 in 2016. By 2017 Bitcoin has recorded an annual increase of up to 1,700% only to fall from $ 19,000 to around 3,000 in 2018.

Both the money world and economists have a thorough insight into the regulatory attitudes of the United States and advanced economies towards Bitcoin. There is also an expansion of the Bitcoin asset bubble and other digital currencies.

Even knowing the nature of digital money, understanding the law is not easy. Behind Bitcoin’s dramatic volatility is rife with potentially dangerous pitfalls in the spot and futures markets.

Floating and dangerous currency makes professional investors who see clearly everything also feel “guilty”. But is the crypto craze really over? That’s probably not the focus of smart people, what they notice is how to benefit until the end. At least for the giants, the allocation of assets in relation to cryptocurrencies is nothing to say in the face of their enormous wealth.

Despite repeated warnings from regulators, the lure of money not only excites the smart minds on Wall Street, but also upsets the nerves of some fintech firms. . In fact, institutions are also a member of coercion, and investing in cryptocurrencies has become an inevitable link.

” Organizations have to make outsiders feel that they are at the forefront of this investment and they don’t want to be seen as too conservative or too low, ” said financial researcher Ju Jianhua.

At the same time, as the Covid-19 translation raged, the global economy was compromised and Bitcoin’s hedging character became more and more apparent. The value of the virtual currency increased from a low of $ 3,155 at the end of 2018 to more than $ 60,000 today.

Faced with that situation, Wall Street and Silicon Valley have strongly entered the cryptocurrency market. CoinShares data shows that the size of crypto assets managed by institutions in the first quarter of this year has risen to as high as $ 59 billion, while last year the figure was just 37.6. billion USD.

” The investors or the LP behind the institution allocate some of the Bitcoin assets and their need will drive financial institutions to enter this market, ” one investor emphasized. virtual money sector of financial institutions.

Indeed, compared with the skyrocketing data, the claims of the institutions are clearer. After JP Morgan applied for the launch of ” Bitcoin concept shares ” in March, it was predicted that Bitcoin’s target price would reach $ 130,000. The ARK fund, which opened the door to Bitcoin, believes that the market value of the virtual currency will eventually match or even surpass gold.

In the eyes of the outsiders, the goal was to make Bitcoin the next bond or equity market, and their dreams began to come true. Recently, after Canada approved a Bitcoin ETF, Coinbase – the largest crypto exchange in the US – also successfully IPOed “the first cryptocurrency”.

Naeem Aslam, chief market analyst at AvaTrade, points out that Coinbase’s listing on the market shows very clear signals that regulators won’t take a strong stance on the cryptocurrency.

That certainly increases the liquidity and depth of the digital currency market. Now, after more than 10 years of Bitcoin being put into operation, most of this coin is tightly controlled by the development team and major investors. Meanwhile, for small investors, the fate of their network can easily be changed with just a “finger” by the manipulation of giant sharks …