Bitcoin Is Facing A Mad Rush Or A Shortcut For Capital Flight.

In China, anything that can be hyped up is likely to run wild at any time. In the first half of last year, stocks were grabbed. Many cities seized houses this year and later grabbed commodity futures. Because in the eyes of Chinese investors, as long as these things were grabbed, they were robbed of money, so there was no madness.

Rob is not only a characteristic of Chinese investors, but also because there are trillions of money in the domestic market.

These funds are in the domestic market in pursuit of a target that can be mad.

This is not. Domestic commodity futures have not yet completely ended, and bitcoin has become another target of domestic funds.

Recently, as the Federal Reserve raised interest rate expectations, the strength of the US dollar has become the focus of the international market.

The strongest impact of the US dollar was Asian currencies, which led to the full depreciation of Asian currencies, and the renminbi was no exception.

Federal Reserve Chairman Yellen said last Friday that if the economy and the job market continue to grow stronger, the Fed may raise interest rates in the next few months.

Although Yellen did not specify which meeting to raise interest rates, her speech would be pushing up expectations for the Federal Reserve to move closer to policy action.

Because of Yellen's speech, the US dollar exchange rate index rose rapidly, which not only reduced the devaluation of the RMB for several months, but yesterday the depreciation of the renminbi reached a new low of 5 years, and it also stimulated Bitcoin to skyrocket.

That is to say, after 5 months of horizontal consolidation, bitcoin jumped sharply in recent days and hit a new high in the past two years.

Wall Street news reports, according to OKCOIN data, bitcoin has been soaring 3 consecutive trading days, 28 bitcoin price intraday rose to about $599 each, or about 3920 yuan, an increase of more than 10% over the previous trading day, hitting a new high in the past two years.

Reported that the crazy rise of bitcoin started last Friday (27 days), after 3 consecutive trading days, the cumulative rise of 32% last week, is the biggest weekly gain after the bubble burst in November 2013.

The intraday price of nearly $600 has hit a new high since July 2014.

Bitcoin news website Cryptocoin News in May 27th according to the trend of bitcoin made

It predicts that the price of bitcoin will rise to $500.

Unexpectedly, in a few hours, the price of bitcoin quickly broke through the $500 mark.

But in the evening of May 29th, bitcoin fell from $600 to around $526.

For this time

Suddenly, a lot of market participants believe that it may be related to the strong dollar depreciation of the US dollar, because under the trend of RMB devaluation, domestic investors began to sell Renminbi denominated assets and turn to bitcoin.

According to market estimates, the current market value of bitcoin in the global market is about $8 billion.

Domestically

It seems that the bitcoin market has such a large capacity, it can be regarded as a way of asset selection, because in the current situation, holding bitcoins is the most convenient way to exchange dollars.

Because although bitcoin is popular in China, domestic investors are starting to scramble for bitcoin. Even though the research on the technology of "bitcoin chain" is hot all over the world, relevant professionals are pessimistic about the future of special currency.

It is reported that a few months ago, Mike Hearn, a core development team of bitcoin, boldly admitted in an article that bitcoin had failed.

To make matters worse, bitcoin related communities have failed, and the whole network has gone to the brink of technological collapse.

Taavet Hinrikus, President of TransferWise, the international payment agency, even shouted bitcoin was dead, and no longer used the bitcoin in the real economy.

In fact, bitcoin was no longer in sight after the comparison of the special currency craze in 2013. Especially in 2014, the Mt. Gox bankruptcy application made bitcoin suffer a serious blow.

However, these are just from the technical point of view of the future trend of bitcoin, if the nature of the currency from the perspective of the future development of bitcoin, this digital money really become an investment tool is not too big.

Because when a circulating currency is only guaranteed by technology, its credit is not guaranteed by a state's political power. It is rather uncertain about how and where the credit is. If a currency's credit is uncertain, and no state's political power guarantees it, any dispute or breach of contract between such users can not be judged in a just way.

According to the data of the current trading platform, up to 95% of the trading volume of the bitcoin price rose to $530 last Friday, which is RMB denominated pactions.

That is to say, in the recent crazy rise of the Bobbi special currency, the vast majority of pactions are Chinese people in the mad rush.

This is also the fundamental reason why bitcoin has been seriously pushed up.

It can be said that as long as the US dollar continues to be strong, the renminbi will gradually depreciate and domestic capital flight is an inevitable trend.

In this regard, the regulation of domestic capital flows may be more stringent. Under such circumstances, domestic investors may choose bitcoins to pfer overseas as assets, which may lead to further madness of bitcoin.

However, domestic investors should be careful about this.