The concept of Bitcoin was first proposed by Satoshi Nakamoto on November 1, 2008, and was officially born on January 3, 2009. Bitcoin is a P2P digital currency. Bitcoin's transaction records are open and transparent. Peer-to-peer transmission means a decentralized payment system. Unlike most currencies, Bitcoin does not rely on a specific monetary institution to issue it. It is generated through a large amount of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transactions, and uses cryptographic design to ensure the security of all links in the circulation of currency. 2. Bitcoin crashed again, what's going on? On April 18, 2021, the global virtual currency market plummeted across the board, and the cryptocurrency market experienced the worst crash in history. On a 24-hour basis, Bitcoin plummeted by more than 16%, Ethereum plummeted by nearly 20%, Binance Coin plummeted by 17%, and Ripple fell by 26%. Within one day, more than 620,000 people were liquidated, and the liquidation amount exceeded US$5.579 billion. Brian Armstrong, CEO of virtual currency exchange Coinbase, sold $290 million of company stock, bringing its total insider market value to more than $4.6 billion. In addition, Coinbase CFO Alessia Haas cashed out about $99.32 million at $388.73. It is reported that the ability of cloud computing is to split mining machines into independent units. The mine provides mining machine computing power leasing services. Investors only need to purchase computing contracts to conduct "cloud mining" and obtain corresponding virtual currencies. It was found on multiple cloud computing platforms that the rate of return declared by each platform is not low, and some annualized rates of return even exceed 100%. At the same time, cloud computing capabilities also face huge risks. In the absence of third-party guarantees and supervision, cloud computing capabilities sometimes face huge risks. ㈢ What are the virtual currencies that collapsed in 2022? Cake. On January 22, 2022, all mainstream cottages plummeted, and the contract multi-order liquidation cost tens of billions of dollars, and hundreds of thousands of people were liquidated. Cake fell directly from 4.3 to the current 3.5, with a drop of more than 10 points for two consecutive days. The copycats were even more bloodbathed. The copycats and the two virtual currencies, led by Dabing, have suffered another Waterloo and will collapse completely in 2022.Li Yu ㈣ What happened to the sharp drop in the price of Bitcoin? On the one hand, it was because of the lack of policy support, and on the other hand, it was because of the emergence of Bitcoin Cash. The two currencies were not compatible in technology, which led to a serious plunge in the price of Bitcoin. [Extended information] 1. Many novice investors are often attracted by the high profits of Bitcoin and cannot control the invested funds well. It is recommended that you may wish to comprehensively measure your funds before investing, and outflow important investments such as education and medical care. Only then can the remaining idle funds be considered to be included in the field of Bitcoin investment, and choose to seize the entry opportunity based on the market conditions. Doing so can effectively avoid the gambling mentality of going all out, control the cost of investment, and avoid losses caused by risky investments. 2. Skill 2. Stay firm and don't be indecisive. Investing in Bitcoin is a protracted battle. Because of its unique characteristics, Bitcoin only needs time to be bullish in the long term. Therefore, when the market trend chart and technical operation system show that the market has short-term market fluctuations, investors need to remain rational and patient. They don't have to buy or sell with most people, but should choose to stick to it and believe in the long-term value of Bitcoin. 3. Skill 3. Choose a suitable trading platform. When buying Bitcoin, choosing a suitable trading platform is crucial to success. As an old driver who has been in the currency circle for a long time, the following points are my personal experience in choosing Bitcoin trading platforms for many years, for reference only: the reputation and technical strength of the platform; the amount of registered capital of the platform; the professionalism of the platform team; the current trading volume and number of people on the platform; the speed of platform funds arriving. 4. In order to avoid risks to the greatest extent, when trading Bitcoin, the first choice is the Euro-Easy trading platform. 5. Bitcoin is a virtual cryptocurrency based on decentralization, using peer-to-peer network and consensus initiative, open source code, and blockchain as the underlying technology. It was proposed by Satoshi Nakamoto in 2008 and was born in 2009. The biggest difference from other virtual currencies is that its total number is very limited and it is scarce. 6. Unlike all currencies, Bitcoin does not rely on a specific currency institution to issue it. It is generated through a large amount of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors, and uses cryptographic design to ensure the security of all aspects of currency circulation.7. The global financial crisis broke out in 2008. On November 1, 2008, a person who called himself Satoshi Nakamoto published the Bitcoin white paper "Bitcoin: A Peer-to-Peer Electronic Cash System" on the P2P foundation website, stating his new vision for electronic currency - Bitcoin was born. On January 3, 2009, the Bitcoin Genesis Block was born. On January 5, 2009, Bitcoin, which is not controlled by the central bank or any financial institution, was born. Bitcoin is a digital currency composed of a series of complex codes generated by computers. New Bitcoins are manufactured through preset programs. As the total amount of Bitcoin increases, the speed of new currency manufacturing slows down until the total amount of 21 million will be reached in 2140. ㈤ When the virtual currency transaction is completely banned, the virtual currency industry chain enterprises are deregistered, and the currency price plummets. The "action horn" for the complete ban on virtual currency transactions was blown by Beijing! According to the news released by the Business Management Department of the People's Bank of China on July 6, recently, the Beijing Local Financial Supervision and Administration Bureau, together with the Business Management Department of the People's Bank of China and relevant departments of the Huairou District Government, cleaned up and rectified Beijing Qudao Culture Development Co., Ltd. (hereinafter referred to as "Qudao Culture"), which was suspected of providing software services for virtual currency transactions, and ordered the company to cancel its registration and its official website has been suspended. This is the first time that local financial regulatory authorities have taken action to shut down companies suspected of providing software services for virtual currency transactions, and it is also considered that the domestic comprehensive ban on virtual currency transactions has entered the implementation stage. Not long ago, relevant departments of the People's Bank of China interviewed some banks and payment institutions and made it clear that banks and payment institutions shall not provide products or services such as account opening, registration, trading, clearing and settlement for related activities. The 51st meeting of the Financial Committee of the State Council pointed out that it is necessary to crack down on Bitcoin mining and trading activities and resolutely prevent individual risks from being transmitted to the social field. The interviewed experts said that the domestic virtual currency has entered a stage of comprehensive supervision from production to circulation. The disorderly speculation and barbaric development of virtual currency have eroded the country's monetary sovereignty, disrupted the economic and financial order, and seriously endangered the country's financial security. Virtual currency has the characteristics of decentralization and anonymity. If there is a lack of effective supervision, it will provide convenient conditions for cross-border money laundering and terrorist crimes.The sharp rise and fall in the market has exacerbated the turmoil in the financial market and may induce systemic financial risks. The rectification of virtual currency has been further strengthened. Recently, the Beijing Local Financial Regulatory Bureau, together with the Business Management Department of the People's Bank of China and relevant departments of the Huairou District Government, cleaned up and rectified Qudao Culture, which was suspected of providing software services for virtual currency transactions, and solemnly warned: relevant institutions under its jurisdiction shall not provide business premises, commercial displays, marketing and publicity, paid diversion and other services for virtual currency-related business activities. Financial institutions and payment institutions under its jurisdiction shall not directly or indirectly provide virtual currency-related services to customers. Industrial and commercial information shows that Qudao Culture was established on April 13, 2016 and was simply deregistered on June 18, 2021. Its registered place is Huairou District, Beijing, with a registered capital of 3 million yuan. It is 100% owned by the legal representative Gong Wei. Its subsidiaries include Maoli.com, Maoliyun, Maoli Gaogao, Xiaoxiao Entertainment, Ziwu Qingran and other websites, which are suspected of providing software services for virtual currency "Maoli Coin" transactions. Beijing's financial regulatory authorities have cleaned up and rectified companies suspected of providing software services for virtual currency transactions, which is a true reflection of the country's comprehensive ban on virtual currency transactions. Not long ago, the relevant departments of the People's Bank of China interviewed some banks and payment institutions such as Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank of China, Postal Savings Bank of China, Industrial Bank of China and Alipay on the issue of banks and payment institutions providing services for virtual currency trading speculation. Before banning financial institutions and payment institutions from providing virtual currency-related services, the blocking of virtual currency exchanges and "mines" had also been launched. Following the ban on Weibo accounts, keywords such as "Huobi", "Binance" and "okex" for virtual currency exchanges were banned on the Internet and Weibo in early June. Earlier in mid-May 2021, three industry associations issued an announcement reiterating that activities such as conducting legal currency and virtual currency exchange and exchange business between virtual currencies, providing information intermediary and pricing services for virtual currency transactions violated relevant laws and regulations, and were suspected of illegal fundraising, illegal issuance of securities, illegal sale of token tickets and other criminal activities. The 51st meeting of the Financial Committee of the State Council pointed out that it is necessary to crack down on Bitcoin mining and trading, and resolutely prevent individual risks from being transmitted to the social field.Subsequently, Xinjiang, Yunnan, Sichuan and other places successively cleaned up and shut down virtual currency "mining" projects. In the view of the interviewed experts, the comprehensive ban on virtual currency transactions in China is mainly to block the transmission of virtual currency risks. The first is market risk. The scale of virtual currencies such as Bitcoin entering the trading market is limited, which can easily create an illusion of "rare goods" for investors and is easily influenced and controlled by a few institutional investors or individuals. In particular, the rise of group "mining" can easily lead to large institutions or organizations acquiring Bitcoin, thereby manipulating the Bitcoin market and price. The second is trading risk. Many investors often hold the mentality of getting rich overnight, and the trading leverage is usually magnified to 5 times or even higher, which poses huge trading risks. Under the huge market fluctuations, a large number of highly leveraged investors "exploded" instantly. In addition, the problem of "difficult withdrawal" of virtual currencies has become increasingly apparent since 2019. The third is technical risk. Whether the risk resistance of virtual currency trading platforms can match the rapid increase in trading volume, and whether the blockchain and other technologies they rely on can withstand the test of security, etc., are all real problems facing the virtual currency trading market. There have been incidents in which security vulnerabilities in Bitcoin trading platforms in many countries have been exploited by hackers, resulting in the loss of Bitcoin hosted by the platform. Fourth, compliance risk. Due to the characteristics of virtual currency such as high anonymity and decentralized issuance, it is not only completely separated from the real economy, but also more likely to become a tool for illegal and criminal activities such as money laundering, drug trafficking, smuggling, and illegal fundraising. Transactions are not only not protected by law, but also touch the legal bottom line and red line. Bitcoin derivatives and "air coins" are full of Ponzi schemes and various lies. Zeng Zheng pointed out that in the past few years, virtual currency has been used as an alternative investment. Its anonymity has made it a tool for telecommunications fraud, opening casinos and other crimes or cross-border money laundering by illegal persons, which has seriously undermined the stability of my country's market economic order. Virtual currency may also impact sovereign currency in essence. In order to protect the sovereignty of digital currency and enhance the competitiveness of the RMB in the global monetary system, it is necessary to strengthen supervision of the existing virtual currency system to prevent financial risks. Pan Helin pointed out that in the past few years, virtual currency has generated a wave of bubble speculation worldwide, and many overseas financial institutions have participated in it. However, virtual currency does not have a guarantee attribute and its price is highly volatile, which may eventually lead to the bursting of the virtual currency bubble.Once the bubble of virtual currency bursts, the risk will be transmitted to financial institutions. my country has taken action to ban virtual currency transactions in order to block the transmission of virtual currency risks, nip it in the bud, and implement the principle of financial prudence. Affected by the comprehensive domestic ban, the price of Bitcoin has recently hovered around $35,000, which is nearly "halved" compared to the price of more than $60,000 in April this year. With the sharp drop in the price of Bitcoin, virtual currencies such as Ethereum, Binance Coin, Ripple, Dogecoin, and Litecoin have also fallen. In fact, the plunge in virtual currencies has become the norm. On May 19, Bitcoin once fell below $40,000 per coin, and the price reached the lowest point in the previous three months. Along with the plunge in Bitcoin, the overall cryptocurrency market has seen a sharp drop. As of 14:05 on May 19, 2021, Ethereum fell 15.98% in 24 hours, Litecoin fell 11.76% in 24 hours, and Dogecoin fell 16.31% in 24 hours... Around 6 a.m. on May 13, the price of Bitcoin experienced a rapid decline, reaching a low of $45,500, a drop of more than $10,000 from its intraday high, and a 24-hour drop of nearly 15.29%. Ethereum fell more than 10%, and Ripple fell more than 17%. The recently popular Shiba Inu coin fell more than 40% in 24 hours at the time, and Dogecoin (DOGE) fell 17%. Earlier on the morning of April 23, Bitcoin fell below $50,000 for the first time since March 8. Then at 15:59 on the same day, Bitcoin fell below $48,000. On the morning of April 18, Bitcoin plunged nearly $8,000 in an hour, with a daily drop of more than 15%. Every time Bitcoin flash crashes, virtual currencies also plummet. When Bitcoin fell below the $50,000 mark, Ripple fell more than 15%, and Ethereum fell more than 9% to around $2,253. When Bitcoin plunged 15% during the day, Ethereum plunged 20%, Binance Coin plunged 17%, Ripple plunged 26%, Dogecoin plunged 19%, and Litecoin plunged 28%. Dong Ximiao pointed out that compared with general investment products, virtual currencies such as Bitcoin are speculative, hype, and volatile. Due to the immaturity of the trading market and imperfect regulatory rules, the risk of virtual currency trading is extremely high. Especially in an emerging economy like China, there is a lot of room for improvement in the financial market and investor literacy. It is not only necessary but also urgent to strengthen virtual currency supervision with strict measures.Dong Ximiao suggested that in the next step, my country should improve laws and regulations, take targeted measures, and carry out centralized rectification activities on virtual currency mining and trading. At the same time, investor education should be further strengthened and improved, and the pertinence and effectiveness of education should be enhanced to improve the ability of ordinary investors to identify and prevent risks of virtual currencies. The public should fully understand the nature and risks of virtual currencies such as Bitcoin, resist temptation, protect their wallets, and not participate in any form of trading or speculation. In addition, my country should strengthen international regulatory cooperation, share regulatory information, and solve many problems in cross-border regulation of virtual currencies. ㈥ What happened to the Bitcoin plunge? A few days ago, the price of Bitcoin just broke through the $3,000 mark, setting a new record high, but then plummeted by more than 30%. As of the 16th of this week, the market value of Bitcoin evaporated by $10 billion, almost equivalent to the market value of the social software Twitter (Twitter) of $12 billion. Several other reasons for the plunge include the sharp drop in US technology stocks and the bearish outlook of investment banks on Bitcoin. Morgan Stanley said that "virtual currencies are like currencies in the Wild West" and need to be regulated before they can continue to rise. The previous price surge may have been caused by speculation and difficulty in selling. ㈦ How many times has Bitcoin experienced a sharp drop? Bitcoin has experienced at least 11 sharp drops since it was first noticed by the public. The most recent one was in November last year, when Bitcoin was panic-sold by the public in one trading day, and the price once plummeted by 14% during the trading session, which was the largest drop in the past year.