Bitcoin 2020 year-end summary report: Even if it rises to 1 million US dollars, it may not matter to the vast majority of people.

According to the annual practice of the vernacular, the end of the year is approaching, and it is time to write a year-end summary, and it is also the time to take stock of "several joys and sorrows".

This year's theme has nothing to do with previous years' TPS, anonymity, privacy, platform currency, better BTC, better Ethereum, etc. This year's theme can be said to be only two:

One is BTC; the other is Defi.

BTC is a feast for outsiders (institutions), while Defi is a carnival for insiders.

This is the first article, let’s take a look at what BTC has experienced in 2020.

The price of BTC on January 1 at the beginning of the year was $7,100.

The lowest point of this year was the unprecedented 312 tragedy, which fell to 3800 US dollars.

In other words, if your assets in the circle have not achieved a three-fold increase from January 1 to the present, or if they have not achieved a six-fold increase from 312 to the present, then unfortunately, you may become your first The negative teaching material that I heard when I entered the circle - in the circle, buying various counterfeit coins, the end of the operation is as fierce as a tiger, that is, there is a high probability that you will not be able to run and hold BTC and pretend to be dead...

Is it pricking the old iron?

Research: The top 1,000 individual investors control about 3 million bitcoins: On October 26, Bloomberg tweeted that a new study found that the top 1,000 individual investors controlled about 3 million bitcoins, and Concentration may be higher. [2021/10/26 20:57:59]

In fact, there are more heart-wrenching.

In the past few months, BTC started to rise after a long time at around 10,000. Do you think everyone has made money? It's just a question of earning more and earning less.

The truth is cruel. A sudden dive of 2000 points at the end of November directly caused the bulls to liquidate nearly 1 billion US dollars in 24 hours, almost no less than 312.

What's more interesting is, in the past three months, in the doubling market from 10,000 to 20,000, which one do you think has more bulls or shorts?

The answer is bulls, and far more than bears.

As a big V said some time ago: I am confident that it will break through 20,000, but the bulls must die.

Many novices come in and ask stupidly, BTC has risen to one million dollars, isn't everyone in our currency circle a millionaire, a billionaire?

And from the process of BTC rising from 10,000 to 20,000, we can clearly see that even if BTC rises to 1 million US dollars, it has nothing to do with the vast majority of people in the circle. Because in fact, in the process of most people in the circle losing money, BTC moved forward step by step...

Listed company MicroStrategy buys over $250 million in bitcoin as part of asset allocation: Nasdaq-listed business intelligence company MicroStrategy has become the first public company to buy bitcoin as part of its capital allocation strategy. The company announced that it had purchased 21,454 bitcoins (currently worth more than $250 million). MicroStrategy previously disclosed plans to purchase Bitcoin to avoid inflation for the first time on July 28, 2020. (The Block)[2020/8/11]

Outside the circle, the same is true:

You don't have to believe in any law in this circle, but you can't believe in the 28th law.

This year's increase of several times, there is no doubt that institutions are the biggest promoters.

Among other things, you can tell just by looking at the position of the most well-known Grayscale, that Grayscale is constantly buying, buying, and buying.

Source: Feixiaohao

Founder of Herjavec: In the long run, the price of Bitcoin will be five times what it is now: Robert Herjavec, a network security expert and founder of the Herjavec Group, said on the show, I think that in the long run, the price of Bitcoin will be five times what it is now, Bitcoin prices of $100,000 and $1 million "don't sound crazy." Additionally, he said he would buy Bitcoin at prices as low as $10,000. (FXStreet)[2020/3/3]

As mentioned in the previous article, institutional investors account for more than 80% of Grayscale funds, followed by qualified investors, pension accounts and other groups of people. Grayscale does not make money from rising currency prices. In other words, he does not speculate himself, what he earns is a management fee. Therefore, the increasing holdings of Grayscale actually show that institutional investors, and those rich people (the threshold for qualified investors in the United States are "personal and asset assets with a net wealth of more than US$1 million or an income of more than US$200,000 in the past two years) Institutional investors with more than $5 million") started getting really bullish on BTC and bought it aggressively.

In addition to Grayscale, major investment institutions have also started to "build positions". According to the statistics of Bitcoin Treasuries, there are currently more than 16 listed companies on the market holding BTC.

For example, in the news of the past few days alone, there are several in a random search:

Voice | Co-founder of Gemini Exchange: The 2 trillion dollars printed by the Federal Reserve are 2 trillion reasons why you should hold Bitcoin: Cameron Winklevoss, co-founder of Gemini Exchange, recently tweeted: Since the 2008 financial crisis Since then, the Fed has printed $2 trillion (a 3x increase in the balance sheet). Here are 2 Trillion Reasons You Should Hold Bitcoin. [2019/10/21]

“Guggenheim Partners LLC recently said it may invest up to 10% of its $5.3B Macro Opportunities Fund in a BTC trust”;

“Insurance giant Massachusetts Mutual recently announced a $100 million investment in BTC (BTCUSD) from its general investment account”;

"Ruffer, a British listed company, began to reduce its gold holdings in November, and allocated 675 million US dollars in BTC, accounting for 2.5% of its asset management scale, and called it a defensive investment";

…

You see, the little coins dug out by the miners are not enough for these institutions and funds to buy. When will the major pension institutions in various countries take out a percentage, even 1%, 2% to allocate BTC for "defense" Sexual" investment, one can imagine what kind of "magnificence" the BTC price will have at that time.

Voice | Tim Draper: Strict regulation of Libra is very good for Bitcoin. If the United States does not support BTC and other innovations, it will lead to its flow to other countries: According to The Daily Hodl, this week, American venture capitalist Tim Draper said in an interview with CNBC , Strict regulation of Libra is of great benefit to Bitcoin. He stated that the more big companies accept digital assets, the more people will realize the benefits of BTC. Getting people talking about Libra is a good thing. Because the more people talk about it, the more they realize how important Bitcoin is to the planet, and to everyone. Tim Draper called on U.S. regulators to pay attention to the global support for blockchain, allowing the technology to flourish. He emphasized that all cryptocurrencies are a bridge to Bitcoin. Governments around the world are grappling with this problem. As it turns out, the U.S. government has a lot of heavy-handed regulators, and they're all trying to get involved. Tim Draper expressed concern that if the United States is not open to innovations around Bitcoin, blockchain, smart contracts, open nodes, etc., they will flow to other countries. [2019/7/21]

In addition to the influx of institutional investors, public opinion has taken a 180-degree turn when it comes to cryptocurrencies, especially BTC:

In our country, the attitude of CCTV is most obvious.

In November 2017, a column of CCTV2 was called "When will the madness of BTC end".

In September of this year, the news of CCTV2 was swiped in the circle.

On Wall Street, JPMorgan Chase, which scolded BTC the most fiercely before, issued the most severe criticism of BTC and the entire digital currency industry in 2017, calling it "a scam."

Now, JPMorgan Chase has issued a JP Morgan Coin this year - Morgan Coin!

Needless to say, there are many KOLs in the financial circle, and there are many BTC fans, and there are more and more. No, this year, Robert Kiyosaki, the author of Poor Dad Rich Dad, tweeted: "The Federal Reserve cannot save you by printing fake dollars. Buy gold, silver and BTC and save yourself".

What is even more exaggerated is that this trend spread directly to the entertainment industry. First, J.K. Rowling, the author of "Harry Potter", posted on Twitter, asking netizens to explain to her "What is BTC?" Then "Game of Thrones" became famous. The heroine Erya asked directly on Twitter: Should I hold BTC. Both twitters attracted countless retweets and replies both inside and outside the circle.

This may be the first time in history that public opinion outside the circle finally has a generally consistent direction and atmosphere with our circle.

This year’s BTC rally, in addition to halving, in addition to public opinion, in addition to institutions, and the power of the general environment cannot be ignored.

U.S. dollar release: Since March 2020, the U.S. Treasury Department and the Federal Reserve have released a total of 17.3 trillion U.S. dollars in base currency liquidity and economic stimulus packages to the market in just 33 weeks.

You know, in the 10 years from 2008 to 2018, the United States only printed 3.3 trillion yuan. This year, the amount printed in the past few decades is the top.

In this case, almost all asset prices must rise without anyone's control. If you pay more attention to the economy, you will find that not only BTC is rising, but also condiments ("garlic you ruthless" "ginger you army" " "Xiang Qian Cong" re-emerged), food (such as corn futures), industrial-related raw materials and metals (such as copper, glass, thermal coal, electrolytic aluminum, iron ore...), these things you will find K-line trends, and Bitcoin is not much different. You must have felt it in your life, many things are increasing in price, except wages...

In addition to the U.S. dollar flooding to push up the prices of all assets, Paypal and PornHub also contributed to the divine assists of BTC.

Needless to say, Paypal is equivalent to directly opening the BTC purchase window to more than 300 million users around the world. And compared to windows or channels, more importantly, it has given global retail investors a reassurance. No matter how it went up or down before, BTC or the entire cryptocurrency industry was always regarded as an "alternative" or even a "scam" in the eyes of most people, but now it's different, Paypal can buy it directly! The impression and perception in the eyes of ordinary people who do not understand the blockchain are completely different. Paypal endorsement, at least the hats of "scam" and "air" have been completely removed.

However, at the end of this BTC summary, I still want to remind you that you should know what you are investing in.

The original design of BTC was a peer-to-peer electronic cash system. In Satoshi Nakamoto's later posts, BTC will also carry various possible types of transactions through scripts in the future: escrow transactions, bonded contracts, third-party arbitration, multi-party signatures, etc. .

These have nothing to do with the current BTC. BTC currently has the main function of storing value. The cash payment function and various types of smart contract transaction support supported by scripts have basically nothing to do with BTC, which is why BCH and BSV forked later.

You can say that it was deliberately done by the Core development team and BlockStream, or it can be said that this is the final result of free competition and free choice in the market. In any case, BTC is a store of value, electronic gold, which has already penetrated into the consensus of almost everyone in the circle, and it is this information that outsiders must have come into contact with at the beginning of entering the circle.

From a technical point of view, after a hundred years, BTC will be mined and there will be no more block rewards. If value storage alone is used, it will be impossible to generate enough TX on the chain. How will BTC computing power and security be guaranteed? Do you want to switch to PoS like ETH?

No one knows the answer. But as an investor, perhaps you should understand more, as a BTC that was born only 10 years ago, is the answer after 100 years important?

BTC has changed from electronic cash to electronic gold. Looking back at this route in the future, it may be correct or wrong. But there is a saying that is good, the market is always right. Respecting the market and being in awe of the market may be an axiom that every investor must keep in mind.

But, no matter how you look at it, BTC in 2020 is a bit of a hero, facing the government (Wall Street) recruiting, it is tragic and tragic that you have to obey... I don’t know if you feel the same as me?

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