The joy and sorrow of Bitcoin players

History always repeats itself surprisingly, with a cycle of three years. Every time there is a big rise or fall, the medicine remains the same in a new way. The prescription is the same, but the person taking the medicine is just a new person walking the old path. If there is another opportunity for a big rise, perhaps many people still cannot afford it.

Bitcoin has been up and down recently. When the price was rising the most, many friends came to inquire about the situation from time to time. We always knew that someone would definitely make a move. As for when, it would be probably at the peak of the market (in fact, there is no peak at all). That someone determines the highest price of the currency. That someone is the central bank, the biggest short seller of Bitcoin.

History repeats itself

It is true that Bitcoin goes through a three-year cycle. In 2013, Bitcoin was introduced to China and experienced many ups and downs. Like today, the madness at that time attracted great attention from regulators. The central bank and five ministries jointly issued the "Notice on Preventing Bitcoin Risks", which defined the then popular Bitcoin: Bitcoin is a specific virtual commodity that does not have the same legal status as currency and cannot and should not be circulated and used as currency in the market. This includes prohibiting banks and third-party payment institutions from providing recharge services for Bitcoin transactions, and also reprimanding mainstream media for not participating in Bitcoin-related reports. Bitcoin has been at a low point for the next three years. In the past 2016, Bitcoin became the most valuable investment and was once again wildly sought after.

Today, it is not new that the central bank intervenes again when the price of bitcoins soars. On January 11, 2017, the People's Bank of China issued a notice requiring the Beijing Operation Management Department and the Shanghai Headquarters to take the lead in the joint efforts of the two local financial bureaus, industrial and commercial bureaus and public security bureaus to form a law enforcement inspection team to conduct a joint comprehensive law enforcement inspection of the three bitcoin trading platforms Huobi.com, OKCoin and Bitcoin China. The inspection teams from the two places will enter the market no later than Thursday this week. The inspection content includes: operating beyond the scope, using unapproved trading models, illegally engaging in financial businesses such as leveraged financing, illegally carrying out payment and exchange business, failing to implement anti-money laundering regulations, and suspected illegal manipulation of market prices and misappropriation of customer trading funds.

Why do they need to check and reiterate the 2013 "Notice on Preventing Bitcoin Risks"? The main purpose is to prevent risks, suppress crazy market behavior, and prevent malicious speculation. The central bank has no intention of banning transactions. "Talks" and "inspections" are not direct closures. Now all major exchanges are still operating normally. If you don't believe it, you can go and trade. Therefore , the central bank's attitude towards Bitcoin has always been clear. It is a commodity that can be invested in, but the supervision is not clear, and it has not yet thoroughly studied how to classify Bitcoin.

In this way, the central bank's move this time is the same as that in 2013. In order to promote legal and compliant transactions of Bitcoin, formal and legal supervision is necessary, rather than relying solely on industry self-discipline. Now is the right time. On the one hand, the central bank has been studying for several years and has a certain understanding of Bitcoin. On the other hand, the industry's own transaction management has also developed for several years and can cooperate with regulatory norms, and the industry ecology is becoming more standardized. Regardless of the regulatory results, Bitcoin, a global investment product, will continue to grow wildly. If the policy is unclear, Bitcoin players will always be hurt.

Lucky Bitcoin Player

When the Bitcoin market is at its best, you can make money no matter how you buy it. Those who entered the market earlier will not lose money even if they sell it now. These people are lucky and have vision, and they knew it early, but those who entered the market later are not so lucky. Especially for those who are standing on the high ground, we mourn for you. Don't panic, hold on, and hold the coins with peace of mind. Anyway, it won't go down, so why not wait and see. We all think that those who make money are lucky, but I always think that being "trapped" is also a kind of luck. What I mean is that holding Bitcoin is lucky, which means we still have the opportunity to witness the next peak together.

Tragic Bitcoin Player

Sometimes I feel that leeks are really miserable. They generally don’t know how to die. Listening too much will affect their judgment. They have to rely on themselves at critical moments. I think it all comes down to a problem of thinking. Those who can’t keep up will never catch up, and those who can keep up will always be one step ahead.

Some friends asked me whether to enter the market when the price of the currency was 5,000 yuan. My answer was that they could enter. However, they asked me again when it reached 6,000 yuan. I still told them that they could play for a while. However, they asked me again when it reached 7,000 yuan. I said I dare not give any advice now. At that time, I still felt that the currency price would continue to rise after looking at the K-line analysis. Then why didn’t I give any advice? Because this kind of people are not worthy of recommendation. If they enter at this time and the price falls according to past experience, then I will have to bear this stigma. Three times the limit, this kind of players are tragic.

There is another type of player who is even more tragic. They hesitated for a long time and entered the market when the price was close to the high. As soon as the central bank's news came out, they immediately placed orders to sell their stocks at a loss, as if the world was about to end. I guess this type of people will be like this in the face of any investment. They are typical leeks with too strong a speculative mentality, which is very tragic.

Conclusion: It is hard to fall asleep in the middle of the night when you are trading cryptocurrencies. The price of cryptocurrencies changes like smoke. How can you survive when you are trading cryptocurrencies alone? The short-selling massacre has already begun.