Why do some people say that Bitcoin can rise to 1 million?
10 years ago, Bitcoin was only a few hundred RMB. At that time, the currency circle shouted the widely circulated slogan of "one coin, one villa". Who dared to believe it at that time? Now it is 460,000 RMB per coin, which can be said to be basically realized. In rural areas and remote towns, hundreds of thousands of RMB can build a small villa.
1. Corrupt officials all over the world buy spot goods continuously and dare not sell them. When they need money, they may mix a small part of the coins and then withdraw them. Look at the anti-corruption documentaries in China. The corrupt officials are greedy for hundreds of millions or even more. Counting the increase in Bitcoin, the asset value of many wallets on the chain is jaw-dropping.
2. There are people who are naked shorting in the futures market (or other wrong transactions). Bitcoin is a thing with no upper limit and no suitable valuation method, but no matter when, there are always people who don't believe in evil and go shorting for a long time.
All orders placed by everyone are public, but no one except the exchange knows how many times you have opened leverage, and even the exchange does not know whether you have an off-site standby margin. Most of the time, exchanges or large capital parties hope that Bitcoin will rise in the long run, because this will increase their assets and attract more people to enter the market. For most participants, they don’t know how many times they have opened leverage. As long as they are rational people who understand things, they are mostly on the long side.
The reason is simple. If you don’t know how many times you have opened leverage for long positions, you have to avoid the risk of one times. Facing an opponent who can never lose, do you dare to be a long-term opponent with him? However, shorting, even 0.1 times may cause you to explode: Bitcoin has risen ten thousand times in this way. Some people may wonder why traders with large funds use one times leverage to go long in contracts instead of buying spot?
This is because the liquidity of contract transactions in the market is much better than that of spot transactions. If you place an order on twap, on the one hand, you may miss the right price, and on the other hand, if you stop loss at some point in the future, the loss will be much greater. In addition, it can also improve the utilization rate of funds. No matter who the short seller is, he will never know how many potential opponents he will have in the future. Even if he is the richest person or even a country in the world, he cannot guarantee that he will be able to succeed in short selling unless those big players agree in advance to short sell together.
3. Why do the rich allocate crypto assets? In the past, Bitcoin was a new thing.
If there is a rich person whose assets rank in the top 0.01%, he should allocate Bitcoin with a corresponding proportion. In this way, if Bitcoin becomes a major asset class, the little money he takes out can hedge the risk of a big drop in ranking. Artificial intelligence stocks have skyrocketed. The same is true for artificial intelligence as a new technology that may subvert the industry.
If you feel confused and can't see the direction in trading at the moment, you might as well follow my homepage and click on the avatar to find me. As an investor who has been working in the currency circle for many years, I am willing to share my experience and insights with you, and seize this bull market together!
