Although the relevant Chinese authorities ordered the closure of the three major exchanges for only ten days, for this market with 24-hour uninterrupted trading and no weekend closures.
These ten days are sufficient trading time. As for the impact that China's unilateral ban will have on the entire market, it is naturally a matter of opinion.
The market only fell by more than 7 points that day, which may be a reference answer, that is, the risk resistance of this decentralized virtual currency is indeed "second to none".
You must know that the entire virtual currency market is actually not just a currency. With the rise of the blockchain concept and the unique and strong performance of Bitcoin, the entire virtual currency market is supported.
Seeing that the market value of Bitcoin is rising day by day, its high threshold has also become prohibitive for some retail investors, but they are really interested in virtual currencies, so they have stepped back and looked for some more affordable alternatives.
Other altcoins naturally emerged as the times require. After all, although the concept of blockchain is novel, as long as you can make money, there will never be a shortage of talents studying technology in the world. There will always be someone who can understand it thoroughly and quickly copy it.
The first to bear the brunt are naturally the major exchanges that focus on virtual currency transactions. Perhaps the most outstanding one is Ethereum, which is innovative on the basis of Bitcoin and is hailed as the leader of the second-generation cryptocurrency platform.
The currency it launched, Ethereum, is also very popular in the entire market, and is considered by many to be the virtual currency second only to Bitcoin. Some even think that it is only a matter of time before it surpasses Bitcoin.
Although Bitcoin is a pioneer in this field and has sufficient first-mover advantages, it is precisely because of this that some shortcomings in its technical protocols will naturally become its flaws.
But this does not prevent Bitcoin from becoming a giant in the field of blockchain, and it is reasonable for Ethereum and others to rely on the advantage of standing on the shoulders of giants to outperform others.
Of course, in addition to Ethereum, the top student, there are also some poor imitators in such a large blockchain. This is undoubtedly the charm of blockchain technology. Even if you don’t understand it deeply, it does not prevent you from using it.
Use it as a tool.
As long as you put it on the market by any name, you can still create a brand new virtual currency. As for whether it will be recognized by the market and circulate in the market, that is a market problem.
As for exchanges, the more the merrier is welcome, opening the door to various altcoins. After all, they only provide trading functions and have no regulatory responsibilities and obligations.
On the contrary, as long as there are enough types of transactions and the frequency is high enough, the income from handling fees alone is enough for them to get a share of the entire market. There is no reason to intervene in this kind of good thing of sitting back and enjoying the benefits.
Even if you want to intervene, you can't. After all, this is the characteristic of the blockchain and the concept of decentralization. No rules are the rules here.
However, it is worth mentioning that because the Bitcoin algorithm is open source and anyone can easily download the source code, most altcoins are slightly modified on this basis and emerge as a new virtual currency.
currency.
However, Bitcoin has one thing that many copycats find difficult to surpass, and that is the huge algorithm network accumulated through first-mover advantages.
Since the core concept of blockchain technology is to store information in a distributed form to achieve a decentralized effect, each participant is a subject, and the information they hold is regarded as a block, and is processed in chronological order.
form a complete chain.
In this chain, as long as there is one subject, the entire chain is safe. As time goes by, and there are more and more participants, the chain will naturally grow, gradually reaching a height that is difficult to destroy.
To a certain extent, the Internet can only be eliminated on the physical level, otherwise it will always exist. This is also a major point in establishing its value.
As for Bitcoin, which is developed based on blockchain technology, its currency network has become extremely robust over time. The lack of a center means that it cannot be shut down, but its huge currency network is enough to ensure that it will not disappear.
This is the biggest advantage of Bitcoin and the biggest weakness of copycats, because there is not enough time for the algorithm to grow, so as long as someone controls 51% of the computing power of the currency network, they can manipulate transactions and the value of virtual currencies.
This approach, which is contrary to the concept of decentralization, will undoubtedly cause a devastating blow to its existence. This is also a major reason why copycats find it difficult to survive. It is also the source of continuous thunderstorms in the currency circle in the future.
On the contrary, as the originator of Bitcoin, the network composed of its algorithm has already spread all over the world. If you want to control 51% of the computing power of its network, the hardware computing power required is undoubtedly an astronomical figure.
Therefore, the possibility of subverting the Bitcoin algorithm is infinitely close to zero.
To sum up, it is not difficult for us to come to the conclusion that the only possibility to kill blockchain technology is to kill it in its infancy at the beginning of its birth.
Once it grows up, there is no way to threaten it... emmm? Why does this strange description feel so familiar...
Ahem, let’s get back to the topic. Therefore, the role played by Bitcoin in the entire virtual currency market is like gold in the currency market, which has the effect of setting the sea.
And even though the relevant departments have imposed a ban, killing the soil for its survival in the country and uprooting it in one fell swoop, at the same time, they have also inadvertently launched a huge wave of advertising for it.
Being able to provoke the world's second largest economy to go to such great lengths of war, or even directly prohibit it, from another perspective, isn't it also a reflection of its value?
Is danger not a value?
A ban from China is like a loudspeaker on the World Channel, directly attracting the attention of global investors, and they are full of curiosity and want to find out.
After some understanding, when the entire virtual currency market was in turmoil and many altcoins were instantly wiped out, Bitcoin, which was like a magic needle that fixed the sea, naturally became the most eye-catching kid in the world in the eyes of many latecomers.
After China's loudspeaker propaganda, there will never be a shortage of desperate speculators in the capital market. After all, the wise saying that risk is proportional to return is an eternal truth in any market.
And right now, isn’t it the riskiest time to enter the market?
The bigger the storm, the more expensive the fish!
A simple and unpretentious sentence, but it also explains the relationship between supply and demand concisely and vividly.
Therefore, even after a day of slumping, there was still a large amount of hot money flowing into the market, and many latecomers came one after another to enter the market to buy bargains and grab chips.
Even though the market value of Bitcoin once fell below the $4,000 mark, driven by a large amount of hot money, it unexpectedly embarked on a rising trend that bucked the trend.
As the market wind direction changed, the panic in the market dissipated, and investors on board were no longer eager to jump off the ship, but chose to adapt to the wind.
Originally no one was buying, so naturally they were in a hurry to sell. Now that there are so many buyers, it was natural to sell them at high prices.
In an ever-changing market, the relationship between supply and demand often jumps left and right, making it unpredictable.
On the second day after the ban was issued, the Bitcoin market bucked the trend and rose by 3.51%, and the transaction volume reached a new high, exceeding US$3 billion, which shows that the enthusiasm for market transactions is unprecedentedly high.
After that, for several days in a row, the market trading volume remained stable at around 2 billion U.S. dollars, and the market value also jumped repeatedly due to the tug-of-war between the long and short sides. At one time, it even rose to a height of 4,700 U.S. dollars, setting another record high.
For a time, many retail investors who entered the market later couldn't help but smile, and they all admired their wise move in their hearts. They were indeed right to buy the bottom.
It was simply a textbook-level bargain-hunting operation. It was as precise as a scalpel. It entered the market at a low position, and the harvest was completed as soon as the knife was raised and lowered. It was easy to gain more than a dozen points of profit.
Buffett, the stock god, is nothing more than that. He was just born decades before me.
After tasting the sweetness, the mentality of retail investors expanded rapidly, and a heroic spirit emerged spontaneously. They easily made a dozen points, and if they made a few more transactions, wouldn't they be dozens of points?
However, when the market returned to high levels again, a large number of Chinese investors no longer hesitated and decisively chose to cash out at the high level and leave the market!
If you don't leave, I'm afraid you won't be able to leave when the deadline comes!
Seeing that the ten-day deadline is getting closer and closer, the short side will naturally not miss such a good short-selling opportunity, and take advantage of the trend to hinder it. A short-selling force formed in the market, and the market value of Bitcoin plummeted again.
At one point, it hit the surface of the water worth 4,000 US dollars. In an instant, the drop was more than ten points. This huge dive in the set was like jumping on the concrete floor, and the impact was painful.
The retail investors who had just entered the market from a high position were even more distressed and were on the verge of tears.
Didn’t you agree to make money with your eyes closed?
Give me the money back, why don't I stop playing?
People's joys and sorrows are not the same. Some people make money while others lose money. Some people laugh while others cry. This is generally the case with changes in the market.
Lu Sifang, who held a large amount of chips, had Zhou Dongsheng's words as a stabilizing needle. He felt neither sadness nor joy. He saw through the ups and downs of the market and went straight to the source.
But it’s just a routine. After going short, go long, and harvesting it twice is called transparency. The harvesters may not be the same batch of leeks, but those holding the sickles are probably the same group of people.
For this reason, Lu Sifang even formed a tacit understanding with the market. After all, he holds a high concentration of chips, which is enough for him to play a major force in the market that cannot be underestimated.
He can do what others can do, and he can even do it better!
By repeatedly doing T, Lu Sifang was not only able to profit from it calmly, he even had the energy to further gather chips and increase the number of chips in his hand.
Although due to the earlier entry into the market, the ultimate goal of one million positions has been completed, and although the subsequent cost of opening a position continues to rise, compared with the market conditions, it is still shockingly low.
Until now, the cost of building a warehouse has only reached the range of 1,800 US dollars. Compared with Lu Sifang's small treasury, although the cost has tripled, it is obviously not comparable in terms of volume and income.
Even if we use the current market value of US$4,000 as a measure, the value of the chips in hand is now close to US$4 billion. Putting aside the cost, the net profit exceeds US$2 billion!
Converted into RMB, it is already a net profit of more than 10 billion, and this only took less than a year!
Such a jaw-dropping excess return would definitely cause an uproar if it were made public!
And Zhou Dongsheng, who has completed this wave of god-level operations, will also be pushed to the altar, and he will be in the limelight. Just thinking about it makes Lu Sifang feel honored and excited.
After all, all these operations were completed by his hands. If Zhou Dongsheng is the hand of God, then he is the glove of God.
From the beginning of the layout last year, until this stage, my boss has never wavered from beginning to end, and has unswervingly implemented the decision to focus on heavy positions.
In contrast, as a trader, my courage and mentality fluctuate back and forth, which makes me really judge the difference between high and low.
If it hadn't been for the insistence of my boss, I might have chosen to make a profit and leave the market at some point, and now I might regret it...
Of course, with such a huge number of chips in hand, even if you want to complete the realization, it is a big project. For example, at this stage of weak market sentiment, it is absolutely impossible to accommodate the realization of so many chips...
If Zhou Dongsheng chooses to sell at this time, it is very likely that Bitcoin will be directly thrown into the "three-year period" cycle, and a new round of reincarnation may start again.
At the same time, Lu Sifang couldn't help but admire his boss's foresight from the bottom of his heart. If it weren't for his foresight, he would transfer this business to overseas markets.
Then this official ban will most likely affect Dongsheng Group, which will undoubtedly cause immeasurable losses!
Nowadays, even if the independent overseas investment business is separated from the company, it does not prevent its independent existence.
After all, offshore shells like this one established in the Cayman Islands are themselves a common tactic in the financial field...
At the same time, as the ten-day deadline gets closer and closer, we see that the dividing point of market sentiment is approaching.
A call came to Zhou Dongsheng. When he saw the caller ID, Zhou Dongsheng couldn't help but smile knowingly.
The visitor is naturally Mr. Duan, Duan Yongping!
By the way, Zhou Dongsheng took $1 billion from others in the name of private equity.
The main target of investment is also Bitcoin, in addition to stocks such as Tesla.
Now that there was such a big movement, it was not surprising that Mr. Duan was alarmed. Zhou Dongsheng answered the phone with a smile on his face.