Novice users overnight warehouse burst 100,000 yuan, but also want to loan speculation currency!Where is the coin circle vanity Fair risk?

2022-06-14 0 By

Cryptocurrency is in the doldrums again.Bitcoin continued to fall after falling more than 20% on January 21 and 22.On January 24, Bitcoin continued its downward trend, falling below the $34,000 mark. Ethereum, Dogecoin and other currencies are also in sharp decline.Under the continuous slump, investors in the currency circle also suffered heavy losses.Some novice users lost nearly 400,000 yuan in half a year, and even wanted to obtain funds by cashing in credit cards, online loans and other ways to continue to carry out currency speculation activities.Some analysts say that cryptocurrency has attracted many investors to participate in speculation, but its own shortcomings and risks should not be ignored.”After entering the currency circle, I always see some analysis that bitcoin, Ethereum and other top currencies are supported by institutions and have formed their own value system.How once crash, there is no reason to speak?”On January 24, li Yu (pseudonym), a small white user in the coin circle, expressed his confusion to a reporter from Beijing Business Daily.From $3,000 to nearly $70,000, bitcoin has been riding high in the past two years.After multiple ups and downs, bitcoin posted a 66% gain for the year as a whole in 2021.Ethereum, also surging, rose more than 400% in 2021.The heat of two big currencies attracts many new users to enter, and Li Yu is one of them.Li Yu said that after the crash on May 19, 2021, he began to explore the journey of currency speculation alone. At the beginning, he invested a small amount of money with the mentality of trying, and gradually increased the investment after a small gain, and finally lost more and more money.Li Yu told Beijing Business Daily that in nearly half a year, from speculation spot to gradually increase leverage, its investment of 400,000 yuan of principal has been left.”Early can also comfort themselves, market changes, always have the opportunity.Seeing losses mounting, recovery is far in sight.One of the craziest nights, I saw 100,000 yuan of capital directly explode, so my mind was blank and I didn’t sleep all night.”Li Yu said.”400,000 yuan is all I have saved since I started working. I dare not mention it to my relatives and friends. Sometimes WHEN I think about it, I feel like I am in a dream.In the absence of principal, even began to cash in credit cards or even the idea of online loans.Only the remnants of reason kept telling me not to fall into another abyss.”Li Yu frankly said.Bitcoin this round of slump, so That Li Yu experienced another burst of positions, but also let its disappointed.In Li Yu’s view, the positive comments in the past coin circle are like “painting cake” to retail investors, which is a game that belongs to the interests of the vested.Coin-sphere advocates are desperate to stress its value, essentially to get a piece of the action.And another currency circle veteran player Liu Qi (pseudonym) also confirmed this statement to Beijing Business Daily reporters.In the past few years, the full-time stir-fry Liu Qi in the currency circle small achievements, but also often feel anxious.Liu qi was equally blunt in saying that the coin circle is like a vanity fair, emphasizing the value attributes of cryptocurrencies such as Bitcoin as a cover for “speculation”, which is simply to make a quick buck.”The so-called overnight realization of wealth freedom is actually only in the hands of a few people.Ordinary users in addition to bear huge investment risks, between large fluctuations, it is also easy to lose themselves.Knowing that cutting corners is not a long-term solution, it is difficult to overcome inertia after making quick money.”Liu qi said.Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank, pointed out that cryptocurrency’s violent fluctuations and “myth of creating wealth” have attracted many investors to participate in speculation.However, in terms of actual performance, the volatility of cryptocurrencies represented by Bitcoin is difficult to control and cannot be analyzed by traditional fundamentals and valuation methods.Participants being “robbed overnight” is common and not suitable for the average investor.In fact, since entering 2022, the trend of bitcoin and other cryptocurrencies has been the focus of attention.After hitting an all-time high of 69,000 in November 2021, bitcoin failed to break through the $70,000 barrier as many in the bitcoin community had hoped. Instead, it fell month after month.In early January, bitcoin started at $48,000, fell to $40,000 in a row, and then bounced around $42,000.Until January 22, 23, Bitcoin ushered in a waterfall plunge, two days of cumulative decline of more than 20%, once fell to 34,000 US dollars, for the first time since July 2021, the entire online cryptocurrency trading market nearly a billion capital wiped out.Under the shadow of the slump, bitcoin recorded its worst start to the year since 2012, “bitcoin crash”, “bear market” and other voices have been repeated.On January 24, bitcoin rose 2.42% in the 15 minutes after 7 am. After hitting $36,545, it fluctuated downward and fell back to below $35,000.In the 15-minute period from 16:45 to 17:00, bitcoin saw another big swing of 2.21%.Bitcoin was trading at $33,704 at 18:30 on Jan 24, down 7.5% in the 24 hours and 23.1% in the seven days, according to CoinGecko.Other cryptocurrencies have fared similarly poorly, with most of the top 10 by market capitalization falling between 20% and 45% over the seven days.”There is a great deal of jittery panic across the market, and the price movement is not clear. It is impossible to judge from past experience.”Liu Qi explained to the Beijing Business Daily that the short-term volatility is often called “lure more” or “lure short”, which is easier to attract retail investors.There are a number of bearish factors behind the cryptocurrency slump.The Fed accelerated interest rate hikes and tightened monetary policy sent risky assets tumbling.At the same time, Russia, the UK, Canada and other countries have also reported the trend of cryptocurrency regulation, as well as a large number of bitcoin options expiration.In the opinion of Wang Peng, associate professor at Renmin University of China, bitcoin and other cryptocurrencies do not have the general equivalent property of money, and their price movements are mainly influenced by market news.Therefore, once deviating from the market expectation, investors’ confidence will be hit and the imbalance between supply and demand of buyers and sellers will be further caused, which will easily lead to “stampede”. A large amount of selling in a short term will make the transaction price plunge.In addition to the risks caused by disorderly price fluctuations, the chaos of cryptocurrency also lies in the frequent emergence of various funds and air coins to attract investors to participate in the name of cryptocurrency with high returns.In 2021, cryptocurrency and its related trading activities in China have been continuously suppressed, clearly defined as “illegal financial activities”, and cryptocurrency exchanges have announced their withdrawal from the Chinese mainland one after another.However, from the reality, there are still users in the coin circle who try their best to carry out illegal trading activities in various ways.According to Li Yu, after the currency speculation activity suffered a blow, its enthusiasm for currency speculation is also greatly reduced, and is not keen to find a new trading path.Li declined to comment on future plans, saying only: “The immersive carnival of cryptocurrencies needs to be treated rationally, and the bubble will be pricked one day.”Li Yu also further reminded that in its past contact with the currency circle users, there are also many participants in the deeper.Stop your losses, refuse to engage in speculation, and make money in a down-to-earth way. Hope you realize it’s not too late.”Regulators have clearly cracked down on crypto-currency-related transaction risks, once again demonstrating their attitude of preventing risks of cryptocurrency speculation, and repeatedly warning the market of the risks, which helps prevent risks from the source and cool down the market hype.”Zhou Maohua pointed out that some market participants take advantage of the decentralized, deregulated, hidden and highly speculative nature of cryptocurrency to achieve profit demands, but its own shortcomings and risks should not be ignored, and investors should stay away from this activity.Wang Peng also stressed that cryptocurrency speculation is different from the investment methods provided by licensed institutions, and there are a number of “hard injuries” such as lack of information disclosure, no limit on the rise and fall, and no physical value support.Ordinary investors are difficult to control, do not blindly participate in this so-called “high return” activities.Beijing Business Daily reporter Yue Pin-yu Liao Meng