originally wanted to "get rich", but ended up being "lost".
In recent years, with the skyrocketing price of Bitcoin, more and more content about the virtual currency has appeared in the public eye. The so-called virtual currency is an unregulated digital currency , which is usually issued and controlled by its developers, and is used and accepted by members of specific virtual communities. The price of
ten years ago was still US$999 per coin. On March 2 this year, it reached a historical peak of US$68,928.9 per coin, an increase of nearly 70 times. However, in just two or three months, the price suddenly increased. As of June 23 On the same day, the price plunged to US$20,423 per coin.
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The recent price collapse in the virtual currency market may be attributed to the combined effect of internal and external factors. From within the market, the main reason is the lack of market liquidity caused by the collapse of consensus, which triggered a chain reaction. This caused the prosperity that had been maintained through high leverage to be shattered and market panic intensified. From an external perspective, many central banks, represented by the Federal Reserve, have continued to raise interest rates this year. In addition, regulations related to virtual currencies in various countries have become significantly stricter, which has also made many investors less optimistic about the future trend of the virtual currency market.
Musk can turn his hands into clouds and rain on Dogecoin . A casual tweet can also make virtual currency prices rise three feet from the ground. "If there is 100% profit, capitalists will take risks; if there is 200% profit, capitalists will flout the law; if there is 300% profit, then capitalists will trample everything in the world."
Whether it is compared with the traditional meaning Whether it is money cast from metal or the credit currency issued in modern times with the credit of a sovereign country, virtual currency is not bound to anything of value, and it itself does not have any social value of productive labor. Its price support relies entirely on two decisive factors: the confidence of current participants, and the number of subsequent new participants. From this point of view, virtual currencies appear illusory. Without business attributes and not related to any assets or productive labor, it will eventually turn into a Ponzi scheme and will not evolve into web3.0.
. As an investor, you need to keep your eyes open. Nowadays, problems with stablecoins are frequent, and the phenomenon of cutting leeks is not uncommon. , it is possible to have high growth but it is also a high-risk asset, which must be kept in mind.
