For a long time, the virtual currency, the web3 concept, was out of reach for the average person because of the high barriers to entry,
But there are a lot of people think inside can get rich, so desperately into the drill, study the way to make money.
The essence of the coin circle is to cut leeks
But the latest “battle of the century” in the digital currency world has revealed this:
What digital currency, decentralization is virtual, the essence of the tulip bubble, and cut leeks.
The currency world is in shock
Let’s start with today’s hot coin wars.
In the digital currency world, there is a pyramid, and the spire is the exchange.
We can issue all kinds of virtual currencies without limit, but the only way to get our currency known is to go to an exchange and “get it on”.
So exchanges in the digital currency world,
In fact, it can be understood as our Shenzhen and Los Angeles stock exchanges, where all the capital, currency, and attention of the country are gathered.
The currency exchange, in fact, and the stock market exchange is similar.
And inside the coin circle,
There is an exchange known as the Musk of the coin world, let’s call it “SBF”.
It used to be a great exchange, making a lot of money cutting leeks, the second largest exchange in the world.
But recently it was tied with Zhao Changpeng, the “richest man in China”.
Zhao Changpeng is the CEO of the world’s largest digital currency exchange. He owns a large amount of Bitcoin, so he is called the richest man in the world and is called “CZ” in the currency circle.
“The richest Chinese” Zhao Changpeng
In front of the world’s No. 1 Zhao Changpeng, Musk in the currency circle was defeated, the result of SBF exchange finally surrendered, and Zhao Changpeng expressed interest in buying the exchange.
We know, why is digital currency so popular and popular?
The biggest advantage lies in the “decentralization” of digital currency, that is to say, the issuance, record and so on of digital currency are not controlled by a certain person and enterprise.
But if Zhao Changpeng acquired this exchange called SBF, then the whole coin circle no one can compete with him, it can be said that Zhao Changpeng is the king of cryptocurrency.
Bitcoin has taken a tumble
This goes against the “principle of decentralization” of cryptocurrencies. After it happened,
Many people broke down in faith and started selling their cryptocurrencies, causing Bitcoin, the largest cryptocurrency, to plummet.
Data shows that bitcoin has fallen from a high of $64,000 last year to $17,000 now, with the biggest drop of about 20% in a day. This caused 400,000 people to close to 6 billion dollars!
The United States intervened, the currency circle plummeted
Many people ask, is there no royal law for virtual currency? In fact, the bitcoin market in the last year proves that the rise and fall of virtual currency assets have begun to have a considerable correlation with the traditional financial system.
The Fed’s policy of raising interest rates not only influenced the decline of the US and global stock markets, but also led to the collapse of the cryptocurrency market.
The Federal Reserve has entered a rate hike cycle, and digital currencies are facing a big bear market
This time, Zhao Changpeng’s big win, is about to buy SBF,
But real-life regulators have thrown cold water on the coin industry.
First, the merger of the first and second largest exchanges could be monopolistic
, an associate professor at the University of Amsterdam, said the deal could be subject to U.S. antitrust laws, which could affect the deal.
Second, the deal needs to be approved by antitrust authorities in jurisdictions such as the European Union, which also have the power to block it.
What if Zhao pushes through a merger? That would be a fine of 10% of turnover.
Third, American goods
The Futures Trading Commission said it was monitoring the incident and that it was not clear what the regulatory stance would be.
U.S. Commodity Futures Trading Commission
It is because of strong regulation from the real world that digital currencies such as bitcoin have started their plunge mode.
So don’t think that virtual currency is virtual, and the reality has no relationship, it and the reality of the relationship is not only small, and deep.
And more importantly,
The power of this market rests squarely with regulators in the US and Europe, who are the scythe cutters.
The essence of virtual currency is to cut the leek
Hundreds of years ago,
There is a “tulip bubble” in the Netherlands, which refers to speculators who drive up the price of tulips so much that a tulip can buy you a villa.
And today’s cryptocurrencies, while evolving with all sorts of bizarre technologies and terminology,
But behind the mystique, essentially or tulip bubble + Ponzi scheme.
The granddaddy of scams: the Dutch tulip bubble
Some people say that cryptocurrencies can be used to launder money, etc., but large transactions can always be found, and even LUNA, the digital currency used to launder money, has crashed.
Recently, there is also a concept called web3.0, which is actually a noun and a shell. Technological innovation and development is certainly good, but if some concepts to cheat, that is a problem.
What is web3 anyway? No one can say for sure
So you can see that China completely banned digital money a few years ago, and there is basically no ground for digital money to be created in the mainland.
Because its essence is actually a tulip carnival, although it can bring a temporary “paper wealth”, but after the carnival only crisis.
That’s why Warren Buffett said he wouldn’t exchange all the bitcoins in the world for $25.
Buffett: Bitcoin has no value
Now, more and more people are just looking at digital currencies as
A “hype tool.” Even Zhao Changpeng also had to use the power of the “dollar” to maintain their “deception”.
For example, he says,
All crypto exchanges should disclose proof of reserves. And he’s going to start certifying his reserves very soon,
Maintain full transparency. This means that cryptocurrencies = dollars, and the value of cryptocurrencies is based on dollars.
And now exchanges with “stablecoin”, that is, the US dollar to protect the situation is also common, after all, pure speculation concept no one will believe.
conclusion
The stunning battle between the world’s largest and second-largest exchange tells us something,
The cryptocurrency market is inherently hypocritical and fragile. It is not a market with a value base.
And anything built on the back of cryptocurrencies
So far has died 99.99%, the survivors are also on the way to defeat.
Anything to do with a currency that raises interest rates is ultimately a scam
So, if a friend tells you that you can make money by buying virtual coins, and what currency can be mined, you can make money,
That’s 100% a scam. You can take him to the public security bureau to find the police popularization, and download the anti-fraud APP.
So, in fact, there was no “spectacular war” in this world, and there was no Zhao Changpeng and SBF’s “decisive battle on the Top of the Forbidden City”, there was only two butchers cutting leek each other.
Finally, I want to say, stay away from the virtual currency, cherish the hard-earned money, under the epidemic is already difficult, do not lose the last money is cheated out
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[Cherry Wolf Finance and Economics] to explore the truth behind the hot spot, welcome to forward, like, comment. Image source from the network, intrusion.
