With the increasing attention and recognition of large companies around the world, more and more companies have brought bitcoin into their portfolios. According to oklink, the blockchain big data platform, as of March 11, the total market value of positions of the top 27 companies holding currency (not included in the virtual currency trading platform and gray-scale Fund temporarily) has exceeded 10 billion US dollars after bitcoin broke 60000. MicroStrategy, Tesla and Galaxy Digtal are the top three institutions with the largest bitcoin holdings.

But in this market, the gray-scale fund, known as bitcoin, has been holding down slightly recently. On March 12, gray level official announced the BTC trust positions, which decreased 35 BTC positions compared with a week ago, with a total holding of 655400 BTC,

With the passing of the US 1.9 trillion stimulus bill and the launch of another 2trillion infrastructure plan, a new round of printing and releasing water is opened again, and global worries about the devaluation of the currency are further deepened.

So bitcoin's function in payment and value storage is continuously recognized by institutional investors. As it is further accepted by traditional financial institutions, the function of its value scale is also supported.

PayPal, a large US clearing company, announced it would allow 26million PayPal cooperative stores to accept payment in cryptocurrency on PayPal platform in 2021, which includes bitcoin, Ethereum, bitcoin cash and Wright currency.

But with the soaring market value of bitcoin, the government has attracted great attention. The Reserve Bank of India expressed its concern again last month that cryptocurrency is at risk to financial stability, and the central bank has been trying to launch its own digital currency. India will propose a law banning cryptocurrency transactions and even not holding cryptocurrency, which will give cryptocurrency holders six months to liquidate such assets, a senior Indian government official said.

The market suddenly revealed that the CFTC was investigating currency security on cryptocurrency exchanges because it allowed Americans to bet against us rules.

This suggests that the U.S. government is likely to be aware of the impact of digital currency, especially bitcoin, on the dollar system. The trump government has proposed to incorporate bitcoin transactions into the management of its FinCEN, and to make new requirements for the identity of financial services companies to record the identity of holders of encrypted currencies. This proposal challenges the most powerful function of bitcoin, that is, transfer can be made without government monitoring.

The current treasury secretary, Ellen, has repeatedly reiterated the scepticism of bitcoin, who believes that using bitcoin to trade is an extremely inefficient way to deal with the energy consumed by exchanges is staggering; bitcoin is a highly speculative asset, and the digital currency issued by the central bank can bring a faster and cheaper payment experience. This shows that the Biden government is also planning to continue to push forward the implementation of these regulatory measures.

So whether bitcoin is an electronic gold or a bigger tulip bubble is waiting for an answer.

(2021-4-4)