Because it is not a rational market in any sense, the real transaction volume is negligible, and the transaction structure is very bad. Anyone who doesn't understand how the cryptocurrency market is manipulated will be paralyzed after entering the market.
However, others 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-mentioned Tony, those who call themselves "the oldest people" have gained careful research and patience because of their success. He firmly believes that this is the secret of avoiding the trap of using daily trading traps.
But not everyone believes the old saying. They think that these bitcoin billionaires have not shown any investment mind at all, and making money is like gambling in wealth insurance.
Recently, Vitalik Buterin(V God), who invented the intelligent contract blockchain Ethereum, said in an interview: "Of course, the winners are lucky, but it seems that everyone thinks that this luck comes from their own clever minds."
what did the whales 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 it also brings risks.
According to Chainalysis's analysis, as of April this year, there are about 1,6 bitcoin wallets (managed by speculators and investors), each containing at least 1, bitcoins, totaling nearly 5 million bitcoins. This is close to one-third of the total available bitcoins.
Among them, less than 1 wallets are held by long-term investors, including 1, to 1, bitcoins, which are worth between $75 million and $75 million at today's bitcoin prices.
"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 volatility of Bitcoin is "low risk for the wider financial system" because "only a few people will face great changes in their wealth in this volatility."
nevertheless, due to the lack of supervision and the existence of informal over-the-counter market, large participants still have the opportunity to participate in market manipulation, which puts small participants at a significant disadvantage.
Garrick Hileman, co-founder and blockchain research director of Mosaic, said: "When you create a large enough position on any asset, you can change the price. Most of them are communicating with each other. They not only know each other, but also have a good understanding of market activities. "
Morgan Stanley analysts also responded to this concern in a report this month. They say there is a phenomenon that deserves 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 the influx of funds in 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 a gospel.
where do you trade cryptocurrencies?
buying and selling bitcoin is a challenge for everyone except the most technologically savvy people. As the cryptocurrency craze continued to heat up last year, some consumer finance companies are following the fashion trend and using their familiar applications to provide customers with digital currency.
in response to customers' concerns, many exchanges have also strengthened their due diligence procedures and invested in a larger customer service team. With the development of technology, transaction costs have also decreased, but hacking is still very common.
institutional participants are reluctant to follow suit, including well-known American futures exchanges, such as Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CGM), which all 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's data, there are currently more than 25 cryptocurrency funds, and their assets under management are expected to exceed $3.5 billion. However, the speed of creating new encrypted funds has slowed down recently.
A more formal OTC market has gradually taken shape, including DRW invested by Cumberland Group and Circle supported by Goldman Sachs.
Experts say that the future of bitcoin transactions will largely depend on how regulators will adopt various forms of supervision. Regulatory tools around the world are changing, and so far there is no consistency. Asian financial centers like Tokyo are now monitoring cryptocurrency exchanges, while China completely bans trading. Meanwhile, 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, partly because it is difficult to conduct anti-money laundering investigations on these transactions.
"Banking compliance departments really hate cryptocurrencies, and they have to do a lot of preparation to track down every source of cryptocurrencies."
Hillelman predicts that Bitcoin will one day seem 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 shift from the current financial system to the new one.
Having said that, there are still some people who have a firm belief in Bitcoin. Sunnie has been working in the cryptocurrency exchange since 214. Since then, she has invested in Bitcoin, and she didn't show up at the peak in December last year because she had a similar tragic experience in 216. -think the price is too high and sell it as soon as possible.
at present, 1 bitcoins account for 5% of sunni's assets, while sunni's purchase price is only $3,. She believes in the potential of Bitcoin. After all, it is the first project to use 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 it all into cash and withdraw from Bitcoin directly. The price may be higher than I expected. “