The truth under the plunge: the same panic, not the same new beginning

“Bull markets begin in despair, start in doubt, and end in absurdity.

The truth under the plunge: the same panic, not the same new beginning

There’s a saying that goes, “Bull markets start with desperation, begin with doubt, and end with absurdity.” There should be nothing more absurd in the digital currency market than the blaze of dogcoin and SHIB. So now let’s go back and look at the participants who are still deep in it, what is the current state of these people, starting with doubt and going to despair?

The market is so hot that you don’t even need a white paper or a project, you can send a message in the community, spend 5 minutes to post a coin on Pancake or UNI, rub the heat of dogcoin and SHIB, and then you can complete a harvest. The dream of getting rich?

This article will try to analyze the impact of regulation from the current complicated and huge number of real and fake news, and interpret the current status of the digital currency market from the profit model of zero-sum market. The content covered within this article is only a personal opinion and does not constitute any investment advice. If this article can enhance your level of knowledge, please also remember that digital currencies are extremely risky and require caution in investment.

Be sure to assess your risk tolerance before entering a high-risk market. This is a 7X24 market, a market that uses leverage without any regulatory restrictions, and a market that has poor access to funds during high volatility. This is the first thing everyone has to go into this market with a clear understanding of before entering it.

The information you see = news?

The first news should be the “Announcement on Preventing Risks of Token Issuance and Financing” on May 19, and when you look at the various news headlines online, you will see words like “three major associations” and “join hands to block” all over the place, but few people notice that it is A September 2017 news, the time has been nearly 5 years. And no one has tried to understand what the three associations mentioned here are, what they mean and what their attributes and even functions are.

Then came the fifty-first meeting of the Finance Committee on May 21, which mentioned cracking down on bitcoin mining and trading practices in the prevention of financial risks. As early as early 2018, the Mutual Fund Remediation Office had issued a similar notice to clear out mining enterprises, and this meeting mainly raised the level, but there is still no actual policy on the ground. The main thing is to crack down on the high power consumption of mining behavior, the energy waste brought about by it, for the mining energy consumption problem, the earliest (dogcoin CEO) Musk also mentioned in twitter, also caused the same short-term dip in the digital currency market.

The serious news stops here, I don’t know if you have a kind of confusion, before May this year, there is no significant negative news to affect the market price, and in May 19 began, a variety of negative news concentrated outbreak, and even appeared to take the old news, fake news to fill the situation.

These days all kinds of gossip, Firecoin OK closed OTC channel, state control exchanges and so on all kinds of negative news constantly, after a while you participants review this panic in May, whether by negative news forced to flee in the market bottom, whether in late May or early June, the market will appear again all kinds of good information, the price and again upward rebound.

Dissemination of information itself is a means of controlling the market, falsely using panic information to clean up the market of retail chips. Under normal circumstances, this tactic is strictly limited and regulated. But then again, this way of controlling the market is one of the best ways in this unregulated and extremely sensitive to information market.

The importance of regulation for the market cannot be overstated, and it can be said that the dog coin bandwagoner has accelerated the speeding up of digital currency regulation in various countries with just one person. Using confidence as well as personal influence to manipulate the market is a serious violation in other secondary markets, but in the first half of this year it seems as if the market has been allowed to take it for granted, here regardless of whether the information publisher is profiting from it, but how many people can resist hundreds or thousands of times the profit.

No idealized social experiment can resist the greed of human nature. In this market where profits are so horrible, who is not to profit, even casinos have practitioners banned from entering, and in this market you players can imagine what crowd sitting across from you, they both make the rules, and you sit at the same table, you can make a small profit, but the dealer never loses.

Bitcoin has experienced numerous regulatory crackdowns since its inception, 312 let us see the 4000 BTC again, and this year 519 we saw the ETH below 2000, the purpose of decentralization is never to circumvent regulation, but to remove the monopoly of centralization, transparent and open market, so that ordinary market participants have a relatively fair A transparent and open market is what allows ordinary market participants to have relatively fair opportunities. The stricter the regulation, the more stable the development of the market will be, and the bubble will be burst to see the real value of the market.

Look where the bloodied chips have gone.

What are you investing in when you invest in cryptocurrencies?

In the digital currency market, there are generally two types of cryptocurrencies, one is BTC, dog coin type, through consensus to achieve price increases, and the other is ETH, DOT type, through the basis of its own project, development, and then through the increase of participants to let the price rise, these two can be both, the consensus way is more in line with the vision of decentralization, and itself has a project run more like the securities model.

Consensus is extremely difficult to establish, but once established it is difficult to break. After the market reshuffle it is more important to see if you are investing in the right direction, whether you are investing in a mainstream coin with a consensus base or a small coin with project support, if neither, then what does the coin rely on to support the price?

The reason why mainstream coins have become mainstream and hotspots are sought after and clustered is because the actual problem issues in the market have been solved. DeFi’s on Ether has been more perfect, although both 312 and 519 will expose Ether DeFi to its own shortcomings, but both data and market, DeFi board carried this stress test. The most important point is that big changes in the market often harbor the next potential direction. In addition the market is increasingly buying more and more giant whales are collecting chips, proving that Ether has the potential to surpass Bitcoin.

Although the first thing that comes to mind when talking about 94, 312 and 519 is “plunge” and “panic”, the general environment behind each plunge or the “base” of the market has changed. “has changed. On the one hand, even though bitcoin has been falling since 520, the whales and institutions have been faithfully voting with their “money”, which means that the market consensus has been able to withstand the impact of the crash. On the other hand, we can see that the value of the industry development has been limited to the circle of ethereum, and now the value has started to flow to other sections, the bottom layer of Polkadot, BSC and other public chain public chain ecology is gradually rising. The market is no longer only at the basic level, but more application-level products are leading the market.

The market itself is getting “stronger” and the risks are being spread out as the underlying blockchain and application layers expand. Although bursting the bubble will bring a short period of panic, the current situation can only be considered as a cooling market, and it is difficult to have a cold winter in a market that is gradually getting on the right track.

Zero-sum game

Finally, I would like to advise all contract players that exchange contracts, which are traditional CFDs, are risk hedging tools used by professional traders, but in the digital currency market they are simply defined as leveraged trading. This extremely high-risk product is not suitable for ordinary investors to contact, and I advise all players who want to contract bottoming and leveraged bottoming to learn the most basic trading knowledge first, or at least go to Baidu if you don’t have the idea of learning what these concepts mean, such as fixed-point bursting and cross-price transactions.

In every time the market fluctuates dramatically, completely leave the field mostly CFD and leverage users.

Every penny you make in this market is lost to you by others who are losing money on this deal you are making.

Everyone around you is making money, then the scythe is already not far overhead.

It is important to choose the right direction, and pigs will fly in the wind.

If you expect a bull market, proving that you do not have the ability to make money in a bear market, please do not operate too often.

Liquidity mining – DeFi – NFT – ? (DEX, privacy, derivatives, etc.) Think about where the next windfall is, take advantage of the information gap, and be faster than everyone else to have a chance.


As a pioneer in the market, raise their level of awareness, the immediate riches are good, but what we are witnessing is a change that overturns the traditional concept of finance, I wish all witnesses can reach their goals in life in this change.

At present it seems that the market has entered a short-term downturn, but this market is still in the early stages, if the winter comes, save the chips in your hands, and see you at the top!

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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