The central bank is saving the "Chinese aunties" and Bitcoin is just a "gray rhino"

Water Skin

Don't cry until you see the coffin.

I won’t give up until I reach the Yellow River.

Bitcoin has now become synonymous with virtual currency, and the currency war surrounding Bitcoin is entering a white-hot stage.

It is hard to imagine that the investors involved in this war are so crazy. After the People's Bank of China and seven national ministries and commissions called a halt to ICO, Bitcoin once experienced a relatively large drop. Bitcoin, which had once reached about 30,000 yuan, once fell back to about 25,000 yuan, but then rebounded quickly, and the price returned to about 29,000 yuan before the halt, until the latest rumor was almost settled, that is, the country would completely stop Bitcoin trading at the end of September. The reason why it is called almost is that so far, we have not seen any official documents, and the market is also spreading by word of mouth. However, judging from the trend, if this step is not taken, then the Bitcoin speculation craze will not only fail to cool down, but may add fuel to the fire, because everything has its pros and cons. To a certain extent, calling a halt to ICO has also made a social popularization of ICO. However, China's national conditions are that once Chinese aunts enter the market, the psychology of not being held accountable by the law and the herd effect will be magnified, and a trend that regulators did not expect will appear. From this perspective, cutting the grass and eliminating the root and canceling Bitcoin trading is to cut off the fire.

How far will Bitcoin go?

have no idea.

We only know that the vast majority of participants in this online accounting game, which is claimed to be invented by a Japanese, or more precisely, Satoshi Nakamoto, who literally looks like a Japanese, are in China. From a numerical point of view, the proportion is as high as 70%, and mining is almost the patent of hardcore game players. Of course, there are also many so-called professional mining machine developers who are engaged in industrialized mining, and these investors are almost all in China. More people involved are pure speculators. In 2015, the Chinese government first expressed its attitude towards Bitcoin, not recognizing the so-called currency characteristics, but only identifying it as a certain asset. Bitcoin once plummeted from about 7,000 yuan to more than 1,000 yuan, and then gradually rose, soaring about 30 times. In this process, ICO became the main form of fueling the flames.

The so-called ICO, or initial coin offering, is only one word different from ICO and IPO on the surface. In fact, there is basically no difference in essence. Of course, the issuer will try its best to explain the difference and try its best to get rid of the suspicion of securities issuance. IPO issues stocks and collects RMB, while ICO issues tokens and collects Bitcoin, but where do ordinary people's Bitcoins come from? Therefore, the legal currency behind Bitcoin is still RMB. Whether it is ICO or IPO, it is issued to uncertain objects. If it is just private placement, the impact will not be so great, and of course the bubble will not be so big, the wealth effect will not be so big, and the social harm will be relatively controllable. If there is a difference, it is that IPO has supervision, issuance review, and disclosure, while ICO has nothing. Li Xiaolai can raise $180 million in an instant with a plan, and the valuation can reach $5 billion, claiming to be absolutely "5 billion US dollars in air". What else is this behavior if not illegal financial behavior? Typical illegal fundraising, if the management does not strike with thunder, it is dereliction of duty.

Is Bitcoin the tulip of the past?

have no idea.

However, we know that no one knows whether Satoshi Nakamoto is a human or a ghost, and where he is. In the final analysis, Bitcoin is just an application of blockchain technology. However, it has become a phenomenal product because it is a game code, which can of course be traded. If there is a transaction, there will be a price, and if there is a price, there will be people speculating. This is no different from stamp and coin collecting, but that's all.

The reason why Bitcoin is so popular in China is partly due to the habits of the Chinese people and partly due to the current excess liquidity. It is not possible to achieve immediate results by simply saying that funds should be “transformed from virtual to real”. In the past decade, China’s financial sector has been overdeveloped. Internet finance, including mobile payments, has long surpassed European and American countries. The game of “money making money” is addictive. This is the root of risk control in the current domestic financial industry. To a certain extent, Bitcoin is a “gray rhino” that can only be seen.

Letting Bitcoin return to its essence as a game, becoming an asset for enthusiasts, getting rid of its financial attributes, and downplaying its securities color will be in the interests of all parties. This time, the central bank deserves everyone's praise.