Bitcoin trading hits new highs Comments: Investment sentiment is high and the industrial chain is expected to benefit

Event: According to Bitcoinity statistics, the global transaction volume of Bitcoin in November reached 174.71 million Bitcoins, which is equivalent to RMB 890.3 billion according to market conditions, a record high. In addition, the domestic Bitcoin price once exceeded RMB 5,530 this month, also a three-year high.

Another round of "bull market" after the middle of the year: This year, the performance of the Bitcoin investment market is outstanding. From the beginning of the year to now, the price of Bitcoin has risen by more than 130%. The first round of "bull market" occurred from late May to mid-June this year. In the three days from May 27 to 29, the price of Bitcoin rose from about 2,950 yuan at the time to about 3,800 yuan, an increase of more than 25%. Then in mid-June, the price of Bitcoin once broke through the 5,000 yuan mark, and then fell back. In the past two months, Bitcoin has strengthened again, with global trading volume and domestic quotations both reaching new highs. It can be said that it is another round of "bull market" after the middle of the year. We believe that there are two main reasons: 1) With the increase in the risk of RMB exchange rate fluctuations and the risk of economic fluctuations in some countries and regions, risk aversion has prompted funds to flow into the Bitcoin investment market; 2) The concepts of Bitcoin and blockchain are gradually understood and paid attention to by more and more people, and their security and investment value are recognized. We believe that these two points are mutually corroborative. People will choose Bitcoin for capital hedging, which just reflects from the side that Bitcoin and blockchain are gradually being taken seriously.

It is expected to boost the further prosperity of the industrial chain: The Bitcoin industrial chain includes several links such as issuance (mining machines, mining pools), trading (exchanges), storage (Bitcoin wallets), and applications (transfer payments, e-commerce, etc.). The high enthusiasm for Bitcoin investment has driven the prosperity of the industrial chain and brought a better capital environment to companies in the Bitcoin and blockchain fields. According to the latest statistics released by PwC, in the first nine months of 2016, global blockchain start-ups received a total of approximately US$ 1.4 billion in investment. According to statistics, the total investment and financing in the blockchain field in 2015 was approximately US$474 million. In other words, the investment and financing amount in the first three quarters of 2016 alone has increased by 195% over the whole of last year. We are optimistic about the development trend of blockchain in the next year, and it is expected to seek breakthroughs in a steady rise. We are optimistic about the first-mover opportunity of "blockchain + finance ": As early as June this year, we first proposed the concept of "blockchain + finance", believing that blockchain will not stagnate because of the challenge to traditional centralized financial institutions, and that blockchain will bring "depth + breadth" full business reconstruction to finance, bringing a "saving effect" on the cost side. Currently, whether from the perspective of policy, technology, or capital, "blockchain + finance" has first-mover advantages and is expected to be implemented first.