Since last year, bitcoin has accelerated out of the circle, which is no longer a small circle game. Some people think that behind the popularity of bitcoin is the lack of high-quality investment targets and the anxiety of asset allocation of the new middle class.

After the year, when funds and leading stocks kept falling, bitcoin kept rising. Some investors said, "I didn't expect bitcoin to become the strongest hedge asset.".

"Since last year, I have added bitcoin to clients' asset allocation plans," Wealth Management Planner Xiao Tian told shenran. Due to the policy constraints of real estate and the volatility of fund stocks, she has reached a consensus with some clients to use bitcoin as an investment way to fight inflation. Since last year, there have been fewer customers asking her whether bitcoin is a fraud, and more customers asking her how to buy bitcoin. "It shows that more people have a consensus on the value of bitcoin.".

What's special about bitcoin is that it does have its own ups and downs. "The resonance between bitcoin and mainstream targets is accidental, not inevitable. For example, before that, gold fell sharply, but bitcoin did not follow.

"The middle class needs such an investment target that goes beyond the mainstream law of rise and fall to diversify investment risks." it is precisely because more and more retail investors enter that the news of bitcoin's collapse can be released from the mainstream information and social networking platforms.

However, this does not mean that bitcoin is a sound investment target. The sharp drop on April 18 has fully demonstrated its volatility. It is difficult for the outside world to accurately predict the specific trend and law of the market in the short term. Therefore, when participating in bitcoin or other encryption asset investment, we need to put risk control first, avoid using high leverage, and fully understand the complexity of the encryption asset market and the diversity of risk sources.

Encryption assets are investment assets with higher risks. The fluctuation range and speed of asset prices are significantly different from those of traditional assets. The equity mechanism and technical support behind encryption assets are significantly different from those of traditional investment assets. Before participating in the encryption asset market, we must have a comprehensive and thorough understanding of blockchain technology, distributed business logic and digital financial system, so as to clearly understand the intrinsic value of related encryption assets and control the investment risk in essence.

(2021-4-22)