Bitcoin is accused of being undervalued and is making a strong comeback

Bitcoin, which was so popular a few years ago, has "struck" again, attracting market attention. Recently, a foreign investment bank released a report saying that the current price of Bitcoin is at least 58% undervalued. The report valued Bitcoin at $655. Yesterday, Bitcoin soared in the Asian session. The price quoted by Huobi.com showed that the price of Bitcoin soared to $420.47.

Wang Lin is a Bitcoin player. He told the reporter of "Golden Securities" that Bitcoin has shown signs of recovery recently. Wang Lin did not buy many Bitcoins, only a few. In August last year, he bought them at 1,569 yuan each. Yesterday morning, the price had risen to 2,753 yuan. "Since February, it has maintained a steady upward trend."

Bitcoin is a concept proposed by Japanese Satoshi Nakamoto, who described a method of using computer networks to create a "secret currency" - Bitcoin is not issued by a company or a central bank, nor is it linked to any real currency, but can be used to purchase goods and services in the real world. Figuratively speaking, Bitcoin is obtained by "mining" computers in every corner of the world. The Bitcoin system will continuously provide the player's computer with so-called "hard work problems" - problems that have no shortcuts and rely entirely on hard work. Whoever solves it first will receive a certain amount of new currency - equivalent to issuing this amount of currency. Then you can keep these currencies, or sell them for cash.

In the three years from 2010 to 2013, the market value of Bitcoin increased by 13,333 times, and the price of Bitcoin began to plummet in the following year. In mid-January 2015, it fell to $177.28, which was 86% lower than the historical high of $1,242 in November 2013 .

Since February this year, Bitcoin has slowly recovered. Data shows that the monthly price increase of Bitcoin in February 2016 was 15.08%, leading the rise of global financial products. On March 6, Huobi's transaction volume exceeded 3.54 million, and the transaction amount exceeded 9.5 billion yuan, breaking the global daily transaction record for the seventh time.

Why has Bitcoin started to recover recently? Wang Lin told the reporter of "Golden Securities" that in January this year, the central bank held a seminar on digital currency and stated that it had established a special research team to strive to launch the digital currency issued by the central bank as soon as possible. The central bank's move was regarded as an "ice-breaking move" by the industry, because digital currency can even be regarded as "gold" in the era of gold standard, and is expected to become the "general equivalent" in the Internet era in the future. "This is undoubtedly a major good news for the entire Bitcoin industry," said Wang Lin.

However, such a "recovery" does not excite investors who hold Bitcoin. "I am happy about the increase, but I am not planning to hold it for a long time. After all, no one can predict the future of this virtual currency."

Industry insiders said that Bitcoin lacks a corresponding regulatory agency, and everyone plays with it on their own without supervision, making it difficult to ensure safety. In addition, Bitcoin has no formal legal status. For ordinary investors, when there are already better investment channels, there is no need to choose Bitcoin, an immature investment channel with no legal status.