Speculators exit the market, it is time to wake up the dream of getting rich in Bitcoin
In the past week, Bitcoin has challenged investors' psychological defenses one after another.
From December 2017 to the present, Bitcoin has fallen from a high of close to $20,000, and has stabilized in the range of $6,000-7,000 for a while. However, this stability was completely shattered in the past week. Since Bitcoin broke through $6,000, it has continued to drop, and once fell below $4,170, setting a new low since October 2017.
Long-term holders begin to withdraw
In the midst of grief, some people's psychological support has completely collapsed. The founder of cryptocurrency investment advisory firm Onchain Capital said on Twitter:
"Today is the first time since this bear market that I've seen people pull away, disheartened, scoffing at the technology and the craze, vowing never to touch cryptocurrencies again, not even the most daring [investors] Those] stopped talking..."
This is probably not his own awareness. The group of investors who bought Bitcoin in Q1 of 2017 (the price at that time was between 900-1300 US dollars) are now starting to withdraw. Michael Moro, CEO of digital currency exchange Genesis, said recently that "the guys who bought [Bitcoin] in early 2017, this is the first time I have seen them sell" because "the price is now close to their cost price" .
Of course, even now, this group of people still has a profit margin of at least 3,000 US dollars, which is much luckier than those who entered the market later.
Image via Bitcoin.com
(An investor who has held Bitcoin for more than a year has lost confidence in Bitcoin and is about to leave)
2018 - a disaster year for global investors
Since 2018, the assets of the entire currency circle have shrunk sharply, and some people have lost 80% to 90%. Every day brings new fears. The currency circle is not worth it, but no one tells us where to go.
When you look at the global financial market, you will find that 2018 is not a friendly year for people of all asset levels, and digital currency is just "one of the games".
In the past two months, the market value of FAANG (Facebook, Apple, Amazon, Netflix and Google) in the United States has dropped by a total of US$1 trillion, and the Nasdaq index has fallen by 15% since August 30; In the slump, a barrel (equivalent to 119.2 liters) of oil has fallen by $20 since the high in October; on November 20, 11 sectors of the S&P 500 Index fell, with the energy and technology sectors falling by 3.5% and 2.4% respectively .
Some time ago, the public confession video of American futures tycoon James Cordier (who published "The Complete Guide to Option Selling") nearly collapsed went viral on the Internet. OptionSellers.com, an option trading firm run by James Cordier who suffered a liquidation in the recent surge in U.S. natural gas prices, told investors via email that accounts managed by his company had suffered devastating losses.
James Cordier grimaced in video, fell silent several times
This is true for futures bosses, let alone ordinary people. Therefore, whether you invest in cryptocurrencies, stocks, or others, always remember that the amount of investment should not exceed the range that you can afford.
last hope
In the end, there is also another voice that thinks that this round of Bitcoin decline has just squeezed out a group of speculators, which is a good thing for the development of cryptocurrencies.
Since its birth, cryptocurrencies have always been accompanied by hype and bubbles. As early as 2017, some cryptocurrency experts proposed the "Nakamoto cycle". This view believes that when the price of Bitcoin rises, people's interest in cryptocurrency will increase, so more people will invest, which in turn This in turn drives up the price of Bitcoin.
However, in the past year, investors have gone from fanaticism to gradually leaving the market. On the other hand, the development of the blockchain industry has been lacklustre. This contrast gives us the enlightenment that speculators are not real users. They are just people who want to get rich overnight with Bitcoin, not really believe in this decentralized form of asset.
If the cryptocurrency industry regards these people as users and uses their needs as the driving force for product development, it is tantamount to suicidal. For this immature industry, the departure of speculators may mean a change in the industry culture.
