Recently, the currency market has begun to move around again. After Bitcoin broke through US$51,000 on September 5, Bitcoin once again stood at US$51,000 on September 6. The rise in the price of the currency drove market sentiment. At present, there have been some chaos that led to the crowds of the Bitcoin Democratic Construction Group. It also claims to have “great gods lead people”; and some mines are also ready to move, publishing “mine machine positions” promotion advertisements. From the perspective of industry insiders, under multiple risks such as policies, prices, and laws, everyone must calmly treat currency speculation, mining and other behaviors, participate cautiously, and beware of being deceived.
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Why rose
The price of Bitcoin has risen again. On September 6, a reporter from Beijing Commercial Daily noticed that after the price of Bitcoin broke through US$51,000 the previous day, at 2:20 am on September 6, the price of Bitcoin rose again, from US$50264 to 6:30 am Since then, it has been fluctuating around 51,848 US dollars. As of 20 o’clock on September 6, the latest price of Bitcoin was 51,219 US dollars, an intraday increase of 2.14%.
Maintaining a consistent trend with Bitcoin, other currencies have also seen rising prices in the past two days. Among them, the price of XRP was reported at $1.33, an intraday increase of 6%; BCH was quoted at $767, an intraday increase of 8%.
There are divergent opinions in the industry regarding the rise in currency prices. On the one hand, there is news that the rise in currency prices is related to news related to the release of virtual currencies by giant companies.
Recently, Coinbase, the leading virtual currency trading platform in the United States, has been approved by the board of directors to purchase more than $500 million in virtual currency again, further increasing its current holdings. At the same time, Coinbase also plans to invest 1/10 of its profits in virtual currencies, and as the virtual currency market continues to mature, this proportion will continue to rise. The continued purchase of such large institutions is undoubtedly a powerful boost to the mid- to long-term market of Bitcoin.
In addition, there are views that the rise in Bitcoin is related to the continued dovishness of the Federal Reserve. As pointed out by Professor Pan Helin, Executive Dean and Professor of the Institute of Digital Economics of Zhongnan University of Economics and Law, current US inflation and unemployment rates have pointed to austerity, but the Federal Reserve is unwilling to tighten, which makes it difficult to issue US Treasury bonds. At present, the Fed releases alleviation of the liquidity of U.S. Treasuries by purchasing bonds, so if it tightens at this time, it will cause a bigger problem for U.S. Treasuries and USD. Under the dilemma, easing cannot be withdrawn, which objectively affects the credit of the U.S. dollar and strengthens the recognition of Bitcoin as a potential alternative currency.
Market turmoil
Behind the price increase, the market is also about to move.
A reporter from Beijing Business Daily noticed that on social platforms such as Baidu Tieba and WeChat groups, there have been some chaos in the exchange group of the People’s Republic of China, some of which use “free bitcoins” as a gimmick, and some claim to have “Great God leads people” to attract new users into the group to speculate coins.
In addition to currency speculation, the mining business is also constantly marketing. It claims to be able to conduct “Bitcoin, Ethereum, IPFS knowledge mining exchanges, and even mines openly launching “mining farms” promotion advertisements.
In addition to the increase in social forum currency marketing, there are also many new actions of currency organizations on some vertical platforms in the currency circle. For example, on September 6, a reporter from Beijing Business Daily opened a non-small app and received an open-screen advertisement pushed by the platform. A cryptocurrency project known as “Ulian” was highly recommended, declaring that “we are recruiting partners and become partners.” People can apply for an American island, sign up immediately, and 100% + rebate rewards will be given away…”
An practitioner told a reporter from Beijing Business Daily, “As the price of Bitcoin has risen recently, many small currencies have also risen several times or even more than 10 times. According to the trading volume and industry statistics of some exchanges, it is more than half. The market trading volume a month ago has increased by 30%-40%. This week, the currency price increase data may be even higher, especially the contract trading volume.”
Regarding the mining industry, the aforementioned practitioners said, “In fact, some small mining industries have been doing it, including projects such as Chia, which are also studying some new gameplay. The market is getting hot again. Many people are studying how to evade supervision. What is certain is that many people are still thinking about some new projects.”
It should be noted that in addition to speculation and mining in the currency circle recently, the topic of NFT (Non-Fungible Token) is also endless. Among them, many currencies have skyrocketed under the enthusiasm of NFT. . Liu Feng, director of the Blockchain Technology and Application Research Center of Shanghai University of International Business and Economics, pointed out in an interview with a reporter from Beijing Business Daily that the price of virtual currencies led by Bitcoin has rebounded and exceeded 51,000 U.S. dollars. You can see that some of the hot money is in the NFT of the currency market. The return of enthusiasm led to a strong price increase under the concepts of Metaverse and NFT.
But he also reminded that many NFT transaction scams and scams have also appeared in the market, and everyone should be wary of being deceived.
Watch out for risks
Whether it is for virtual currency transactions or mining activities, the current domestic regulatory attitude is clear.
Since the beginning of this year, my country’s supervision has continued to increase the crackdown on virtual currency transactions and related activities, including Bitcoin, and have formed a multi-party joint force. In addition to banks banning accounts from being used for virtual currency transactions, multiple locations have investigated and investigated virtual currency mining institutions, exchange information has been hidden, and some exchanges have also closed contract transactions for new domestic users.
Pan Helin pointed out that domestic Bitcoin supervision has been promoted, including mining and C2C transactions, which have attracted attention. Although there are still some headwind violations that are on the rise, the current overall policy in my country is clear, that is, to prevent Bitcoin. The currency is associated with the financial system to prevent the risk of future Bitcoin fluctuations from being transmitted to financial institutions. He reminded the currency people to be aware of the volatility risks of virtual currencies, and at the same time, pay attention to the compliance risks of virtual currencies within China. There is no guarantee for transactions, and C2C depends entirely on mutual trust between both parties.
Liu Feng also said, “Considering that virtual currency transactions are not protected by law in our country, traders must be aware of fraud in any form of virtual currency transactions, and considering the professionalism of virtual currencies, traders should Improve your own legal awareness and knowledge reserves, and protect your own property. First, you should improve your own awareness, and be especially cautious in participating in leveraged transactions.”
Regarding follow-up supervision, Pan Helin said, “my country will continue to crack down on transactions and adhere to the principle of prudence. Therefore, preventing virtual currency from transmitting risks to the financial system and prohibiting financial institutions from participating in virtual currency transactions and providing payment services are still the key to subsequent supervision.”
Beijing Commercial Daily reporter Liu Sihong
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