However, some people think that bitcoin trading can be said to be an art, but at the same time it can make people feel nervous and addicted. Among the above Tony, the man who calls himself "the oldest man" has gained careful research and patience because of his success. He firmly believes that this is the secret to avoid using daily trading traps.
But not everyone believes this old saying. They think that these bitcoin billionaires have not shown any investment mind at all, and making money is like gambling on wealth insurance.
Recently, Vitalik Butrin (V God), who invented the intelligent contract blockchain Ethereum, said in an interview: "The winner is of course lucky, but it seems that everyone thinks that this kind of luck comes from their smart minds."
What did the whale do?
The analysis data also shows that the wealth distribution in the bitcoin market is extremely unbalanced. A few investment giants (commonly known as "whales") occupy a large part of the bitcoin market, which is incompatible with Bitcoin's initial task of promoting financial democratization and brings risks.
According to Chainalysis's analysis, as of April this year, there are about 1 6,000 bitcoin wallets (managed by speculators and investors), and each wallet contains at least 1 6,000 bitcoins, totaling nearly 5 million bitcoins. This is close to one-third of the total available bitcoins.
Among them, less than 65,438+000 wallets are held by long-term investors, including 65,438+00,000 to 65,438+000,000 bitcoins. According to today's bitcoin prices, the value of these bitcoins is between 75 million dollars and 750 million dollars.
"This concentrated wealth means that Bitcoin is at risk of fluctuation, because a few people can have a great influence on their behavior." Gladwell is not worried about this.
However, he added that this fluctuation of Bitcoin "is low-risk for the wider financial system" because "only a few people will face great changes in their wealth in this fluctuation."
Nevertheless, due to the lack of supervision and the existence of informal OTC market, large participants still have the opportunity to participate in market manipulation, which puts small participants at an obvious disadvantage.
Garrick Hileman, co-founder of Mosaic and director of blockchain research, said: "When you build a big enough position in any asset, you can change the price. Most of them are communicating with each other. They not only know each other, but also know a lot about market activities. "
Morgan Stanley analysts also responded to this concern in a report this month. They said that there is a phenomenon worthy of attention. More mature investors "are willing to give up traditional investor rights in exchange for faster liquidity."
Nevertheless, it has also been pointed out that the high investment enthusiasm and capital influx of emerging markets can help them further improve their infrastructure. Although this process is gradually advancing, I hope that Bitcoin can be traded more safely in the future. For people, this is also the gospel.
Where do you trade cryptocurrencies?
Buying and selling bitcoin is a challenge for everyone except the most technologically savvy people. As the cryptocurrency boom continued to heat up last year, some consumer finance companies are following the fashion trend, using their familiar applications to provide customers with digital currency.
In response to customers' concerns, many exchanges have also strengthened due diligence procedures and invested in a larger customer service team. With the development of technology, transaction costs have also decreased, but hacker attacks are still very common.
Institutional participants are unwilling to follow suit, including famous American futures exchanges, such as Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CGM), which have started to offer bitcoin futures. At the same time, Nasdaq CEO Adena Friedman said this year that Nasdaq will consider providing cryptocurrency trading services in the future.
Alternative funds are also in hand, eager to try. According to Morgan Stanley, there are currently more than 250 cryptocurrency funds, and their assets under management are expected to exceed $3.5 billion. However, the pace of creating new cryptofunds has slowed down recently.
A more formal OTC market has gradually formed, including DRW invested by Cumberland Group and Circle supported by Goldman Sachs.
Experts said that the future of bitcoin transactions will largely depend on how regulators will adopt various forms of supervision. The regulatory tools all over the world are changing, so far there is no consistency. Asian financial centers like Tokyo are now monitoring cryptocurrency exchanges, while China completely bans trading. At the same time, the US Securities and Exchange Commission announced last month that it would conduct a criminal investigation into potential bitcoin price manipulation.
Banks are particularly reluctant to deal with cryptocurrencies and related companies, in part because it is difficult to conduct anti-money laundering investigations on these transactions.
"The bank compliance department really hates cryptocurrencies, and they have to do a lot of preparation to track every source of cryptocurrencies."
Hillel Mann predicts that Bitcoin will one day appear to have a "legally managed retail investment market", although this will not happen soon, and it may take several years.
Gavin Brown, a senior lecturer in financial economics at Manchester City University, said that the spread of Bitcoin requires regulators, central banks and tax authorities to allow wealth to be transferred from the current financial system to the new financial system.
Having said that, there are still some people who have a firm belief in Bitcoin. Sunnie started to work as a cryptocurrency exchange on 20 14. After that, she invested in Bitcoin and didn't show up at the peak of May 438+February last year, because she had a similar tragic experience on 20 16. -think the price is too high and sell it as soon as possible.
At present, 10 bitcoin accounts for 50% of Sonny's assets, while Sonny's purchase price is only $3,000. She believes in the potential of Bitcoin. After all, this is the first project that uses blockchain as a new technology.
"If Bitcoin still exists in today's price roller coaster stage, I will always believe it. When Bitcoin reaches six figures, I may convert all of it into cash and quit Bitcoin directly. The price may be higher than I thought. "