On January 3, 2009, a "cryptocurrency" was born. Since its birth, Bitcoin has been accompanied by various uncertain voices. Some people think that it makes a lot of money, some think it is worthless, and some people think it is worthless. All of this is due to the scarcity compared with other currencies. In short, the scarcity is the most expensive thing, and the less the same thing, it will naturally be pursued and loved by some capitalists.
"Miner" spring is here? Bitcoin price "skyrocketing"
Since the birth of the concept of Bitcoin, "miners" have continued to emerge. They use various methods to "mine" to accumulate Bitcoin, and then realize the conversion to real capital. However, in recent years, the Bitcoin market does not look hot, and prices have fallen sharply. However, with the changes and development of the international financial situation, the price of Bitcoin has recently achieved a "skysurge". It seems that the spring of "miners" has really come.
The price of Bitcoin broke through US$20,000 on December 16, but the upward momentum did not stop. In the following 11 days, Bitcoin rose from 21,000 to 28,000, rising to 8 "round numbers" in a row. This is obviously an order. Unexpected by many economists.
According to data provided by Coindesk, the world's authoritative blockchain media, the price of Bitcoin reached a high of $28,323 at around 7:15 pm on the 27th, and the total market value of Bitcoin has exceeded $525 billion, or about 3.4 trillion yuan. The market value of the Moutai stock in the A-share sector is 1.1 trillion yuan higher, and the scale is frightening.
Why does Bitcoin soar?
Therefore, why does this virtual currency rise so fast during this time? According to economics expert Williams, the reason for the soaring bitcoin price may not have much to do with what people generally think of as "hype" and "speculation". Although these factors are indeed affected, the main reason is not the case.
Williams further pointed out that since the second half of 2020, some giant companies in the United States have aggressively bought Bitcoin, such as MassMutual Life Insurance and Micro Strategy. These figures show that listed companies have now bought nearly 7 billion U.S. dollars in Bitcoin, which has largely promoted the development of the Bitcoin market.
The most involved in this wave of bull market is actually the involvement of institutions and the crazy entry of global miners. Institutional participation will inevitably have large funds to manipulate the rise and fall of currency prices. This is actually the same as the stock market bull market. Every day, many private equity and public equity funds enter the market to get a share of this big cake market. So the Bitcoin bull market is the same as the stock market. The bull market will last for one to two years. In fact, miners are just swaying the wind. The rising currency price will inevitably double the mining income, so it is not surprising that large-scale miners participate in it.