On April 27th, BTC regained its position at the $55,000 mark, allowing BTC bulls to regain their confidence. BTC's sharp rise this round is enough to see that the market is digesting the bad news last week. Last week, due to the impact of the U.S. capital gains tax, the price of BTC fell in response. I have said that this is a phenomenon of flopping. Because the capital gains tax does not target BTC, but all capital and wealth. If the funds withdrawn from BTC are invested in other assets, it is also difficult to bypass the capital gains tax, so the impact of this policy on BTC is not as great as the market response. Of course, there are many reasons why the price of BTC has risen. Digesting the bad news is only one of them. What's more, it still has hype value.
Although BTC has always been called a capital bubble by most people, this still does not affect the continued increase in the value of BTC and other cryptocurrencies, which seems incredible. But this is actually very easy to understand, because investing and hyping BTC can bring huge benefits, and the higher the value, the greater the profit. Some people may say that many professional financial institutions are actively launching BTC funds and providing related services. I think there are professional financial institutions that support BTC, so I think BTC is very valuable. I think many people have this question. In fact, this question is very realistic. Can professional financial professionals not know if BTC is a bubble?
Financial institutions are like e-commerce platforms, supporting BTC is like buying and selling commodities
To be honest, most of us are indeed inferior to professional financial professionals, but in the eyes of professional financial institutions, their perspective on BTC is different from ours. They don't actually care what BTC is, let alone whether BTC is valuable, they only care whether anyone needs BTC. In fact, they are more like a financial e-commerce platform. Financial institutions play the same roles as Taobao and Meituan. They only earn intermediary service fees and service fees. As for whether you are buying brand-name fashions or second-hand stockings on this financial platform, it is actually the same for the platform. There is just a prerequisite that products traded on financial platforms must comply with local laws and regulations.
Now the United States and other Western countries are actively launching BTC funds and providing BTC trading platforms, and the essence is the same. The BTC fund they launched, to put it bluntly, is using investors' money to hype BTC, and they can earn service fees regardless of whether it rises or falls. Not to mention that some financial institutions also provide loan services for people who speculate on BTC, which is what people often call leveraged funds. This is a lucrative industry. I even doubt that they will play the two roles of bookmakers and gamblers. They have capital and information advantages and can buy retail investors wantonly.
Of course, there are people who say that the price of BTC continues to rise, and it has now reached $55,000. Many people who speculate about BTC have made a lot of money. Since the traditional legal currency system is depreciating year by year, our property has actually been shrinking, so we need to find a product that will not depreciate as a hedge. Since the total amount of BTC is controlled at 21 million, in theory BTC will never depreciate, so BTC is a very good hedging tool. It is believed that the continued increase in the price of BTC will be a trend. If you do not buy BTC now, you will need a higher price to buy BTC in the future.
BTC may increase in value, I am not against it, but never depreciate is just bragging
To be honest, if BTC may continue to increase in value, I would not object to it, because BTC has a high hype value. But if it is said that BTC will never depreciate, I can't agree with it. What happened to the sharp drop in the previous few days? Who can guarantee that BTC will not fall sharply next time, or even pull back to more than 50%? There is only one chance for many things. BTC can pull back this time, and it may pull back again in the future. So I believe that investing in BTC may make money, but it is a joke to say that BTC will never depreciate, and don’t easily believe that other financial products will never depreciate.
As for saying that if you don't buy BTC now, you must buy BTC at a high price in the future, which is a bit exaggerated. We need to know that BTC is not like real estate, it is a kind of rigid consumption, and the absence of BTC does not affect our daily lives. In the future, even if BTC has risen to a sky-high price, if we don't play with them, they won't be able to make our money. As for others who want to hype BTC, whether it is to make money or become a receiver, it actually has little effect on us. Greed is the original sin. As long as we maintain the stability of our legal currency system, we don't have to worry about becoming a BTC picker.
BTC is a highly speculative financial management tool. Its value is reflected in many places, but it is definitely not a rigid-need financial product with a high degree of consensus. The risk and return of investing in BTC are directly proportional. Don't believe that the so-called never depreciation, everything is just a routine of capital speculation.
