See Another Bitcoin Flash Crash, Want to Go for the Bottom?

If you do want to take the plunge into bitcoin, think about these four questions first

See Another Bitcoin Flash Crash, Want to Go for the Bottom?

Editor’s Note

In 2021, the hottest one is the cryptocurrency circle. From bitcoin, to dog coin, to SHI coin, one after another fire out of the circle. After Musk suspended the purchase of Tesla in bitcoin and the three major associations of the financial industry jointly voiced their resistance to virtual currency speculation, the cryptocurrency world experienced a frightening night last night, with cryptocurrencies plunging collectively, bitcoin plunging 30%, touching the $30,000 mark and then rebounding violently, once rising back above $42,000, a rebound of up to 40%, before shaking back down and hovering around $38,000. The market value evaporated hundreds of billions of dollars, exchanges went down, over 460,000 people exploded, and the whole process was so thrilling that cryptocurrency investors had a sleepless night.

In early April, Bitcoin broke through 60,000 and hit a new high. Many people left comments mentioning Bitcoin, and Dean Guan dedicated two videos to explain the investment logic of Bitcoin, suggesting that cryptocurrency investment is extremely risky, with huge fluctuations and retractions, and that Bitcoin is not suitable for ordinary investors.

From a yield perspective alone, bitcoin blows away A-shares, but there are many listed companies that beat bitcoin
We used bitcoin and A-share listed companies to do a little comparison. It can be viewed in several time periods.

Between 2013 and April 2, 2021, bitcoin skyrocketed 4,638 times, staging a sensational wealth creation myth. Here’s the premise that the original price of bitcoin was very low. I knew a guy before who couldn’t find a job at home, stayed at home mining and mined a lot of bitcoins, and now he’s buying islands in the Pacific. The largest increase in A-share stocks is the “carbon neutral” leading – Longi shares, the cumulative increase of about 63 times; Oriental wealth, billion lithium energy rose more than 50 times, respectively, 59 times and 53 times; A-share market since 2013 so far only 20 A-share market since 2013 so far only 20 stocks rose more than 20 times.

Coin World – See the Bitcoin Flash Crash Again, Want to Go for the Bottom?

Between 2018 and April 2, 2021, bitcoin rose more than 3 times cumulatively, beating 98% of A-share listed companies. Bitcoin was gradually recognized by the mainstream market around 2018. since 2018, bitcoin accumulated 3.39 times, the trend can be described as ups and downs: 2018 due to regulatory tightening once plunged 80%; 2019 before the high and then low, the first half of the rapid repair, the second half of the sharp retracement, the annual increase is still as high as 94%; 2020 and 2021 due to the global flooding, bitcoin surged 304% and 110%, respectively. During the period, 73 A-share listed companies outperformed bitcoin, and if you exclude the new shares listed during the period, a total of 42 stocks rose more than bitcoin, with the top-ranked ones being Inco Medical (887%), Optronics (864%), Anjing Food (829%), and Bairun (802%).

From the beginning of 2021 to April 2, MMT simply could not stop in the post-epidemic era as bitcoin reemerged into a frenzy. The external flood was so great that bitcoin broke through $60,000 to set a new record high, up 110%. While domestic monetary policy tightened marginally, there was a significant adjustment in A-shares, with only 9 A-share listed companies rising more than bitcoin, 7 of which are new this year, and the remaining 2 are ST.

But given the huge volatility, bitcoin is not the investment of choice and is not suitable for everyone
With global central banks deflating and the risk of dollar inflation, Bitcoin’s 21 million fixed properties are considered by major institutions to be the digital gold to combat inflation risk. Yet for most average investors, bitcoin is not a good investment choice.

There are only two categories of people who can really make a lot of money on bitcoin.

One is the bitcoin believer, who believes in blockchain technology, in Satoshi Nakamoto, and firmly believes that a decentralized digital currency will shake up the existing international monetary system.

The second is the bitcoin speculator, who recognizes the speculative significance of bitcoin, endures the dramatic volatility at major key points in time, and ultimately earns that profit. But in general both types of people are extremely rare. I don’t make any comments on bitcoin because everyone sees this novelty differently.

But from the perspective of the average investor, such a volatile and headstrong investment target is not suitable for someone. Investors should still recognize their niche and choose a target to invest in that matches their situation.

If you do want to plunge into bitcoin, think about these four questions first
After the big drop many people ask if they can plunge, first recognize these four issues before making a decision:.

One is the value. Whether or not you have faith is very important, bitcoin and diamonds, art investment logic is somewhat like, some people are very obsessed, some people snicker.

The second is volatility. The first thing to consider is whether you can withstand the huge fluctuations. It’s not at all surprising that a flash crash like yesterday’s 30% drop from 20,000 to 3,000 in 2018, a one-year drop of more than 80%, not just a cut.

Third, liquidity. 2% of accounts control 95% of bitcoin, a large number of bitcoin concentrated in the hands of a few people, poor liquidity, plummeting exchanges down to sell the situation often happens.

Fourth is the time lag. Bitcoin surges and plunges usually happen late at night, indeed money never sleeps, and if you can’t keep an eye on the market late at night, you may accidentally ride the roller coaster.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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