35 times return on investment, why are there so few users and funds
Editor's Note: This article comes fromRossa Private Thoughts Exchange (ID: rossa_1581), Author: Rossa, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Rossa Private Thoughts Exchange (ID: rossa_1581)
Rossa Private Thoughts Exchange (ID: rossa_1581)
, Author: Rossa, reproduced by Odaily with authorization.
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1. The ROI of Bitcoin is 70 times that of the traditional market
Comparison of the Dow from 2015 to the present: The Dow rose from 17,823 in 2015 to its highest point of 29,568 in February 2020, with a maximum increase of 66%.
Comparison of the S&P 500 Index from 2015 to the present: The Dow rose from 2058 in 2015 to the highest point of 3393 in February 2020, with a maximum increase of 65%, which was comparable to the increase of the Dow.
Comparison of Nasdaq from 2015 to the present: Nasdaq has more than doubled from 4760 in January 2015 to 10221.
Let’s take a look at the comparison of Bitcoin from 2015 to the present: it opened at 321 in January 2015, and the highest rose to 19666 in December 2017, with a maximum increase of 60 times. Even based on the current currency price of around 9000, the increase is close to 30 times.
Judging from the above five-year trend, the performance of Bitcoin is undoubtedly astonishing. Although Bitcoin fluctuates greatly in the short term, in the long run, it is a good growth target, killing all traditional stock markets in seconds.
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Now at least half of Internet users know about cryptocurrencies, but the penetration rate of cryptocurrencies among Internet users is less than 1%. Since Bitcoin is such a good asset, why are there still so few users? What concerns? If I were the person off the field, I might have these concerns.
1. For ordinary people, they don't understand what the blockchain is. Since you don't understand it, it's better to touch it less, which is also the right investment logic. Due to the high technical threshold, a large number of people are kept out of the door. Most people instinctively reject new technologies, especially at the beginning, when a thing that doesn’t know what it is suddenly rises so much illogically, it is a scam. Others who couldn't understand and rushed in to pan for gold, most of them were killed in the end.
2. For Bitcoin, there is a risk of technical failure. Bitcoin was just an attempt at the beginning. Before Satoshi Nakamoto, most of the masters who wanted to do this kind of attempt failed. Until now, God V doesn’t think that Satoshi Nakamoto is a god, but it’s just luck. And Bitcoin has developed to the present, and it cannot be determined that it has a 100% success rate. It can only be said that it is the project with the highest probability of success among cryptocurrencies. Therefore, the predecessors have always warned investors not to stud, even if it is Bitcoin. Although with the development of technology and the strengthening of consensus, the risk is getting smaller and smaller, but the risk of zeroing still has not disappeared. If Bitcoin fails, then other coins will lose their technical foundation. Because other blockchain projects are improved and developed on the basis of Bitcoin technology.
3. On the one hand, the risk of Bitcoin comes from supervision. Although it is a decentralized issuance and decentralized development, if the supervision denies its legitimacy and controls the transaction process, the exchange will be blocked. If the withdrawal channel is blocked, it will be difficult for new funds to come in, because the transaction threshold is too high, and the realization process is risky.
However, although new retail investors have many concerns and old users are trapped on the top of the mountain, there is also good news: the Xetra Exchange, a subsidiary of Deutsche Börse, announced that it will launch Bitcoin ETP in June. The ETP is named BTCE. 100% Bitcoin physical composition. Another good news is that since last year, we have seen more and more institutions entering the market. The number of whale accounts holding at least 1,000 BTC has increased by 8.9% in the past year. Currently, their holdings account for 22% of the total circulation. The giant whales entering the market are using Bitcoin to hedge against global inflation. The next round of big bull market is likely to be brought about by institutions. Of course, it must cooperate with the general environment so that the momentum will resonate. Attracted by the wealth effect brought about by the surge of Bitcoin, retail investors will finally enter the market at its peak after hesitating for a long time. It's almost a cycle.
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3. Observing the market from a macro perspective
