From less than 100 yuan to thousands of yuan, Chengdu Bitcoin speculators made 5 times the profit in 3 years

"You ignored me yesterday, but now you can't afford me." This sentence is very applicable to Bitcoin at the moment. At 1:10 a.m. on the 5th, Bitcoin broke through the historical high of 8,000 yuan three years ago, setting a record. As of 4 p.m. on January 5, the price of Bitcoin reached a maximum of 8,750 yuan, an increase of more than 260% in one year. However, after breaking the new high during the day, the price of the currency quickly plunged in the evening, falling to around 7,000 yuan, a drop of more than 20%.

A reporter from Chengdu Business Daily found that the lowest price of Bitcoin was only $13 per coin in 2013. Yesterday, the reporter interviewed a Chengdu Bitcoin speculator who bought it three years ago and has now skyrocketed five times.

Chengdu buyer easily earned 800,000 yuan by not moving his account for 3 years

Bitcoin is an online currency that was created in 2009. It is based on a set of cryptographic codes and is generated through a complex algorithm. There are 21 million bitcoins in total. Many institutions claim to accept Bitcoin for payment, and the German government even recognizes it as a currency.

Bitcoin is based on the blockchain protocol. It has no centralized issuer, but is generated by the calculation of network nodes, which is the so-called "decentralization". This technology also allows Bitcoin transactions to be synchronously backed up on millions of servers around the world, which cannot be tampered with or forged.

The highest price of Bitcoin in history was 8,000 yuan on November 19, 2013, but it lasted less than a minute before falling and then continued to bottom out. This time, Bitcoin's rise was slightly more stable, rising from 2,351 yuan at the beginning of 2016 to a record high of 8,000 yuan at the beginning of 2017.

After graduating from university in 2011, Xiao Zhao began to get involved in digital currency. He studied information security in college, so he was very interested in Bitcoin. At that time, Litecoin and Bitcoin had just entered the public eye, and Xiao Zhao invested 70,000 to 80,000 yuan that he earned from running a board game bar during college. "I started by speculating in Litecoin, which was more than 10 yuan per coin, and eventually rose to more than 200 yuan per coin, making more than 1 million yuan." After that, he switched to Bitcoin, buying and selling during the period.

According to his recollection, the value of Bitcoin was $13 at the beginning of 2013, and then it kept rising to $811 at the end of the year. At that time, Xiao Zhao spent more than 200,000 yuan to buy more than 150 Bitcoins. In the following year, Bitcoin entered a roller coaster market, with the price first breaking through 7,500 yuan per coin, and then plummeting to less than 3,000 yuan per coin. Xiao Zhao did not choose to increase his position, but just kept more than 150 Bitcoins in his account. Unexpectedly, in just over two years, Bitcoin "rebounded again", and he found that his account had risen to more than 1.2 million yuan.

Bitcoin adopts a 24/7 trading model. According to data from the Bitcoin market website Btc123.com, as of 6 p.m. on January 5, the price of Bitcoin had risen to 7,700 yuan per coin, an increase of 170% in the past year and an increase of 1,000 yuan in the past 20 days alone.

Since September last year, Bitcoin transactions have suddenly increased. According to statistics from the foreign website Bitcoinity.org, the average daily transaction volume of major global Bitcoin trading platforms has increased from 600,000 to around 6 million at present, and once exceeded 13 million.

Just broke a new high and then plunged. Analysts reminded to control risks

As to why there has been such a rise in the short term, analysts believe that bullish sentiment prevails, driving up Bitcoin prices.

However, analysts warn that we should pay attention to risk control. On December 5, 2013, the People's Bank of China and five other ministries and commissions issued a "Notice on Preventing Bitcoin Risks", prohibiting financial institutions from providing Bitcoin trading services, and requiring Bitcoin Internet platforms to fulfill anti-money laundering obligations, and those with high amounts must provide proof of the legal source of funds.

In addition, we also need to pay attention to the risk of fake transactions. Bitcoin trading platforms are "aggressive" in inflating the volume, and even "writing a program to inflate the transaction volume from 100,000 coins to 2 million coins in one night." This makes it difficult for ordinary investors to make transactions, because the program sells and buys by itself, and the Bitcoins posted can only be bought by the program itself. The prosperity created by inflating is fraught with risks. Once the market situation changes, ordinary investors will become "leeks."

The latest news shows that after breaking the record high yesterday, the price of Bitcoin plunged rapidly in the evening, from the highest price of nearly 9,000 yuan to around 7,000 yuan, a drop of more than 20%. As of press time, the price of the currency fluctuated at 6,400 yuan per coin, and the future short-term trend has become the focus of attention.

Analysts believe that the continuous rise in Bitcoin prices in the past period of time has accumulated a large number of profit-taking orders, and the sharp drop last night was the result of concentrated cashing in of profit-taking orders. The current market's long-term confidence has been hit, and it has also dampened the bullish enthusiasm of most investors. It is expected that market confidence will be difficult to recover in a short period of time. (Reporter Hu Pei)