Since last year's half release of bitcoin, bitcoin has been booming. In addition to a variety of small investors, some traditional institutions have followed suit. First, Tesla said that it would be used as a payment tool, and then pay Pal and visa, JPMorgan Chase and even the world's largest trust fund are buying bitcoin in large quantities.

Such a scenario is very similar to that of the Internet in those years. In the early days of Internet entrepreneurship, just like the blockchain circle now, only a small number of people participated in it. In the early days of Internet entrepreneurship, it was not optimistic and developed to the peak now. In the early days of Internet, Taobao was not the only one to start a business. There were many similar platforms like Taobao, but now Taobao is the best platform in China. So in the coin circle, who will become the existence like Taobao?

I think it's bitcoin. As the ancestor of the coin circle, even now there are thousands of counterfeit coins, many of which are more perfect than bitcoin, but they are still unable to compare with bitcoin, whether it is their market value and sustainable growth ability. The key reason is that bitcoin has been recognized in the market, and more and more people have accepted it. As I said at the beginning, with the intervention of some traditional large institutions, the long-term value of bitcoin is easy to be optimistic. The future price, as many people predict, is likely to be $130000 or $200000.

As a traditional institution, if you want to enter a blockchain currency, you don't want to enter it just like ordinary retail investors. What the institution pursues is a kind of stability, and the factors that the institution considers are more farsighted than speculative. If you pursue speculation, there are too many products to choose from in the market, such as futures and gold. Institutions also cooperate with their customers. They need to protect their customers' property, such as funds and trusts. Why do you think they prefer to buy money for mining rather than speculation? It is not because of the stability, otherwise it is impossible to invest as the company's strategy, and it is impossible to recommend this product to its wealth customers.

At present, a widely accepted view in the market is that bitcoin is used as an electronic gold for storage rather than for transaction and payment. As we all know, gold is rarely paid out, and it is generally used to store and maintain its value. Bitcoin is such an analogy.

In terms of the investment view of bitcoin, there is a view that the price of bitcoin is too high and the number of bitcoins that can be bought is too small. But this view is a wrong judgment of bitcoin. For today's retail users and future institutional users, the consideration now is to hold smart, not bitcoin. One bitcoin is equal to one hundred million. Therefore, no matter how high the price of a bitcoin is, we can still buy Cong with the money. If the price of bitcoin increases by 10 times, the investment and purchase funds will also increase by 10 times. Therefore, it doesn't matter how much bitcoin or Cong You can buy.

Another wrong view of bitcoin investment is that the best investment opportunity of bitcoin has been missed, and it is not worth buying bitcoin now. But in fact, it depends on investors' judgment of the future of bitcoin. If you think bitcoin will go up in the future, then the current price of bitcoin is the lowest price in the future. If you don't look at bitcoin, the current price of bitcoin is its highest point, so there is no need to buy it. So the decision of buying and selling depends on the judgment of the future price of the bitcoin, rather than its current price. A decision related to this view is to invest the same amount of money in other products in order to get better returns. But from the perspective of risk and return, bitcoin is still the best choice.

(2021-4-8)