Recently, musk made it clear in his participation in the program recording that dog money is a kind of "deception". As a result, the dog coin fell by nearly 40%, and many followers were exposed. As a loyal supporter of digital cryptocurrency, musk first bought $1.5 billion of bitcoin at the beginning of the year, and then sold bitcoin to make as much profit as possible. It is reported that musk is gradually cashing out from bitcoin, and it is said that he has cashed out more than 10%.

Now they are ready to use dog money to reap the wealth of retail investors, and domestic netizens burst out in an instant. Think about the crazy rise and sharp fall of bitcoin before, and the instant disappearance of bitcoin in the $260 billion value market, it seems to be the same.

Why is bitcoin so famous?

The most important point is that many people want to realize the dream of "getting rich overnight" in the financial market. The second is the crazy price fluctuation of bitcoin; Finally, bitcoin has three advantages: anonymous trading, speculation and wealth harvesting. Bitcoin emerged after the financial crisis in 2008, and the Federal Reserve hopes to use this virtual currency to harvest leeks from all over the world.

However, it is worth mentioning that in addition to foreign assets, US capital tycoons and retail investors in the stock market are also chasing bitcoin. According to Aiyar analysts, there has also been a wider decline in the US stock market, which may affect all risky assets. In other words, it will also have an indelible impact on the US financial market.

Why did bitcoin choose to start harvesting at this time?

The first reason is that 53 large and small countries, including China and Russia, are currently in the process of de dollarization, which means that the dollar's ability to reap global wealth spread will be weakened. After the Federal Reserve's large-scale release of water and printing money, bitcoin has once again become an effective tool to obtain wealth.

The second fundamental reason is that bitcoin has become an important way for the US Federal Reserve to pass on US dollar risk. Because the U.S. economy has been unable to cope with the epidemic, in this case, after a year of substantial release of dollars, now is the time for it to harvest wealth.

Is bitcoin a fraud?

Dimon, JPMorgan's chief executive, once said, "bitcoin is a fraud that will eventually be broken. This currency will not succeed; It's not wise to buy money created out of thin air. " Bitcoin has also been rejected by some discerning Jewish bankers and billionaires, after billionaires Warren Buffett and Jim Rogers repeatedly warned of the risk of fraud. He also said he would not invest in bitcoin, and there was no logic to its rise.

It can be seen that some people who seem to know the inside story of Wall Street and the investment elites closest to the dollar printing machine are not optimistic about bitcoin, and even think that bitcoin has the risk of cheating. Therefore, many countries in the world have launched measures to limit bitcoin. It is reported that many regulators around the world have imposed restrictions on bitcoin and will continue to dominate the bitcoin market.

(2021-5-12)