What happened today made me meet a dilemma of the century: the cryptocurrency world or the stock market, which sucks more?
Let’s look at the cryptocurrency world today first.
At around 4 a.m. on May 17, bitcoin plunged, falling more than 10% during the period, dropping below the $44,000 mark and taking nearly $5,600 off its intra-day high.
At 12 noon, bitcoin saw another plunge, falling nearly 13% during the day, back down to $42,282.
Bitcoin led the way as the cryptocurrency community as a whole sank, with ethereum down more than 14%, cryptocurrency down more than 11% and dogcoin down more than 10% in 24 hours.
Data from BitcoinHome.com shows that the cryptocurrency market has seen over 200,000 people blow up and $12 billion in wealth evaporate in 24 hours.
What is the reason for the cryptocurrency collapse?
Some users tweeted that bitcoin advocates will be smacked in the face next quarter as they will find Tesla dumping all of its remaining bitcoin holdings.
And, Tesla CEO ElonMusk did not deny and replied: Indeed (Indeed).
One reply on Musk’s Twitter feed and bitcoin plummeted and the entire cryptocurrency community was fucked.
Then, the bitcoin price quickly recovered 5%, about $2,000, to $44,000.
There was also only one reason for the rebound, as Tesla CEO Elon Musk tweeted that Tesla was not selling any bitcoin.
The rise and fall of the cryptocurrency circle depends on Musk, Musk is the cryptocurrency circle YYDS.
The cryptocurrency circle cut up leeks, also not at all ambiguous, a burst of positions are involved in hundreds of thousands of people, involving more than a billion funds.
Then look at the stock market today.
On May 17, the three major stock indexes collectively drifted red, white horse stocks generally rose, while the small-cap stocks represented by the ST concept stocks fell collectively.
Small-cap stocks, there is a new concept of stocks, called the “Leafly concept stocks” collective heavy fall, of which seven stocks down.
Including the source of home, Oriental fashion, Vixen, Haozhi electromechanical, Longyi machinery, ST Huayu, Jinchuang Group, EUROCRANE, Xiangxin technology, *ST Zong Ying, Chengdi Xiangjiang.
The reason is that, according to the explosive information, these companies are suspected of manipulating the share price.
On May 14, the head of private equity institutions Ye Fei broke the news, said the listed company in the source home to carry out “market value management”, the manipulation of the party to renege, not in accordance with the agreed payment to the next family.
The so-called market value management, in my opinion, is the manipulation of share prices, there is no legitimate market value management, is simply the manipulation of share prices.
They take advantage of the capital, in partnership with listed companies, major shareholders, funds, brokerage firms and other subjects, jointly sitting on the stock price to pull up.
As of May 16, a total of 11 listed companies were named by former private equity champion Ye Fei, so the market summed up a “Ye Fei concept stocks”.
Ye Fei’s exposé is associated with market value management and four brokerage firms, respectively, Shenwan Hongyuan, Minsheng Securities, Hengtai Securities, Tianfeng Securities.
Of course, Ye Fei’s revelations also quickly attracted the attention of the Securities Regulatory Commission, which decided to open a case for investigation into the alleged manipulation of stock prices of Litong Electronics and Zhongyuan Home.
What is more critical? Ye Fei has said that “there are hundreds of G’s of material, estimated 40 days after the explosion, the plan to expose 18 listed companies, no less”.
This shows that the A-share is still so bad!
A key question is, which is worse, the cryptocurrency circle or the A-share?
What is the logic of making money in the cryptocurrency circle and the stock market?
As we said in the previous article “The Myth of Riches”, there are two dimensions of understanding why digital currencies have value and why prices rise.
The first level of reason explanation: the proliferation of fiat currencies, both in the financial market and digital currencies, which have skyrocketed in price, is a reflection of the crazy devaluation of fiat currencies.
The second level of explanation: there is no difference between dog coins and fiat currencies, because essentially, the value is a loud “marketing”.
Referring to the classic case of diamond value formation, we can draw a perception: value is a loud marketing, and then reach a unanimous belief.
Bitcoin, tulips, art, gold, etc., all have one thing in common, that is, people believe they have value, that is, seemingly very false “faith”.
You believe in it, I believe in it, many people believe in it, it has value, this is through the “marketing” to reach.
Dogcoin, shib, bitcoin, etc., digital currency is the same, through the continuous propaganda, over and over again to investors brainwashing, the value of the brand will be imprinted in their minds.
With unlimited liquidity, whoever is agitating and able to guide consistent expectations will be able to get a higher return on investment.
Numerous celebrities, entrepreneurs, investors, etc., either don’t understand digital currencies or don’t care to be associated with them, and they are reluctant to stand for them, except for Tesla CEO Musk.
He is the most well-known figure in the cryptocurrency world who follows it and has so many fans on social media that he is able to determine the price of digital currencies and sway the fate of the cryptocurrency world.
Musk is the cryptocurrency YYDS. In the long run, the cryptocurrency world makes the money of consensus; in the short run, the cryptocurrency world makes the money of rivals.
What about the stock market? Generally speaking, three kinds of money are earned: the money of the central mom, the money of corporate growth and the money of the counterparty.
1, earn is the central mom’s money. When the central mom desperately put water, the market money and cheap, the stock price will rise, which is the same as the currency circle, asset prices rise is essentially the depreciation of fiat currency.
2, earn money from the growth of the enterprise. The company grows from small to big, the value of the company also grows from small to big, the stock held naturally increases in value, this is the so-called “growing with great companies”.
This kind of trading inside, the most common is insider trading.
3、Make money from the counterparty. The essence of this kind of trading is the game of human nature, that is, human nature (greed or fear) drives the market participants to chase up and down and exchange chips.
This kind of fair trade, only those who have insight into human nature and can operate against it, are the ones who really earn money from their counterparties.
Inside this kind of trading, the most common thing is to manipulate the market.
How many ways are there to make money in the cryptocurrency world?
One, speculating on coins. It is to play with spreads, the same logic as in speculation, making money from counterparties.
Digital currency is divided into mainstream coins, cottage coins, air coins and marketing coins, just like stocks are divided into blue-chip stocks, growth stocks and junk stocks.
There are also old leeks who make money by hard work, but they are very few, and the vast majority of them cut leeks by manipulating prices.
In summary, through various means to “realize” their own resources and influence, the use of poor information, capital, public opinion to bully the vulnerable.
The stock market is similar to the currency world, with major shareholders, cattle retailer, lobbyists and market capitalization management funds all being scythes.
1, the majority of shareholders are sitting on the farm, the routine is to show part of the bright card, cattle, lenders, and market capitalization management funds hold a dark card, the secondary market ambush good, the majority of shareholders release good cut a wave of leeks, and then through the repurchase of a wave of goods, the formation of their own closed loop, play a thief slippery.
2, bull is their own real buy, and then negotiate with major shareholders business transformation, business diversification and other release of good, and then run major strategy meetings and investment roadshows, lull more people to pay attention to the subject of investment, and finally take advantage of the opportunity to ship.
3, lobbyists mainly play playing version tactics, a positive change of faith, three boards into a demon, until the retail investors accounted for more than 50% of the volume, shipments away.
This kind of completely rely on the capital advantage, in the quotation software to draw K-line chart, dial the nerve of the retail investors.
4, market capitalization management funds. The process is, generally need a large shareholder out of some margin, just buy some, down to play the stock price, grab the large shareholders these margins. Then, the release of good, pull up the stock price, back and forth more than a few leeks.
Finally, it really can’t sell out, find a few receivers, such as public funds and so on, negotiated to give the fund manager 3-5 points of the benefit fee on the line; private funds to take over a little more expensive, usually to give 12% of the rebate.
This point of the cryptocurrency circle and the stock market is not the same place is, the cryptocurrency circle cut leeks cut hard, will be caught in the, so we often simple cryptocurrency circle people on the news. The stock market, on the other hand, is surprisingly “legal” to operate in this way.
So, if the cryptocurrency circle can artificially modify the price to lose 1 point, then the stock market legally cut leeks also lose 1 point, this round of both sides to play a tie.
Second, cross-market arbitrage.
Different exchanges have different quotes, they go long on the exchange with lower quotes and short on the exchange with higher quotes, earning the difference to make a profit.
This kind of operation depends on the strength, skill and experienced investors, it is indeed possible to earn. But A-shares can’t do this kind of operation and lack this kind of money-making scheme.
This round, the cryptocurrency circle wins.
Third, wool-gathering, empty glove.
Woolgathering, empty jerk is free to play with the coins.
When some projects or new digital currencies are just starting out, they will let investors play with the app to mine coins, or hang out to mine coins.
Some even you register with your cell phone and email, you will be able to get some air coins for free. There are also some project parties, in order to cultivate leeks, will first issue some air coins to build communities and give them to promote the project to get more air coins.
This way, although investors did not spend money to get some objective digital currency, but acted as a tool for others to cut leeks.
This round, the cryptocurrency circle is slightly better than half. After all, selling your conscience to act as a tool for others to cut leeks is not a pretty win.
The A-share market is always like this, the result is more and more people join the coin circle.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/which-sucks-more-the-cryptocurrency-world-or-the-stock-market/
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