I haven't paid attention to the market for more than a week. When I came back, I found that the plot was familiar, with a different formula - the protagonist of the market crash changed from Grayscale to the German government, and the target of everyone's complaints also changed from Grayscale to "Germans", saying that they are stupid. In fact, whether it is retail investors or national governments, there are paper hands and diamond hands.
Speaking of this, let me tell you a little story from history, which is the famous "Gold Bleeding" incident in the UK.
In the late 1990s, the price of gold in the international market continued to decline. In 1999, the price of gold fell to around $250 per ounce, the lowest point since the 1970s. The British government and the Bank of England at the time felt that holding so much gold was useless and it was more practical to increase the diversity and liquidity of foreign exchange reserves.
Therefore, Gordon Brown, then British Chancellor of the Exchequer, decided to sell some gold and change the allocation of reserve assets. To put it bluntly, he just wanted to make some profit from the price difference.
On May 7, 1999, the British Treasury officially announced that it would sell 415 tons of gold reserves, which was half of the total reserves at the time! They planned to sell it in 17 auctions until 2002. (Think about the people who speculated in gold at that time, they must have been suffocated by the government's market-smashing behavior, and they endured it for three years!)
As soon as the British government announced the plan, the price of gold in the international market dropped even lower, directly falling to a historic low of $250 per ounce. However, as soon as the auction ended, the international gold price began to rebound. By the time the auction was over in 2002, the price of gold had risen to $320 per ounce. Later, the price of gold soared all the way, and by 2011, it had broken through the historical high of $1,900 per ounce.
The UK's gold-draining operation this time, according to the gold price in 2011, the potential loss is as high as 20.9 billion US dollars! After this incident, the UK Treasury and the central bank began to reflect on the management of gold reserves, and adjusted the reserve management strategy, and never sold gold again. Moreover, they did not buy it back, and now they only have about 300 tons of gold. I guess it's too painful to buy it back!
This incident was reported by many media at the time, and they all said that this was one of the worst investment decisions in modern British history.
For governments, Bitcoin is still a relatively alternative asset, especially for some governments that are not very friendly to cryptocurrencies. For them, selling Bitcoin is much less risky and less responsible than holding it. After all, selling it is cash, and the government in power can control it. If you hold it and wait for the price to rise, the profit will go to others.
Who knows, there may be another German "Bitcoin bloodletting" case that will be recorded in the same way! However, I personally still believe in the concept of Bitcoin as "digital gold". Let time prove everything!
I asked fans to leave and reduce their holdings before the big drop, and sold some copycat stocks that did not rebound or resist the drop. Those who followed the advice can now rest easy and not panic at all. Old fans all know the three bargain-hunting positions I gave, among which the position of 56,000 has been successfully reached. The second opportunity is coming soon. If you want to catch up with this bargain-hunting train, please borrow my avatar and leave a comment of 888
