When Bitcoin gets on a roller coaster, some people regret not getting on the ride, some rejoice at the precise location, and some lament that they didn’t get out. After that, there will be those who will continue to chase the get-rich-quick myth, those who will continue to follow the investment logic of Bitcoin, and those who will continue to linger on the sidelines.
On March 1, local time, a research report released by Citibank believes that Bitcoin is at a critical juncture: it will either become the mainstream digital currency adopted in international trade, or it will collapse in the wave of speculation.
Bitcoin started 2021 with a lot of eyeballs. At the beginning of January, the price surged higher and higher, reaching the top of $40,000, with a cumulative gain of 38% in just seven days of the beginning of the year. However, Bitcoin did not hold the $40,000 mark for long. In February, the entry of Tesla and the opening of the arms of traditional financial giants spurred Bitcoin to rise again, but U.S. Treasury Secretary Janet Yellen’s cold water sent it plunging again. Just last week, the price of a bitcoin hit an all-time high of $58,000, and today it has shaved about $8,000 off the price.
When Bitcoin gets on a roller coaster, some people regret not getting on the ride, some rejoice at the precise location, and some lament that they didn’t get out. After that, there will be those who will continue to chase the get-rich-quick myth, those who will continue to follow the investment logic of Bitcoin, and those who will continue to linger on the sidelines. The National Business Daily reporter interviewed three individual bitcoin investors to tell them about the ups and downs of their coin circle.
“I’m a gambler.”
Liu Yang, 24, Shanghai, media industry
I admit it, I’m a gambler, the kind of person who would take a chance on a bike to become a motorcycle.
In 2015, I was about to graduate from high school. My mother’s friend in the securities company to work, I encouraged my mother to open an account, with her account into the stock market. It was the time of the military parade, so I thought it would be good for military stocks, so I picked a couple of them, made a few bucks, made some money, and bought a new phone and a pair of Air Jordan sneakers.
After the bull market in the first half of 2015, I took a break from stocks. I was introduced to bitcoin by a friend in 2018, when the price was still over $3,000. My friend said it was bottom-hunting and let me hold it, but I wasn’t sure.
In 2019, I entered the market when the price of Bitcoin hit more than 40,000 RMB. I had two coins in my hand at that time. It was sold in December of that year and made more than 10,000.
I was part of the latest wave, buying on the advice of an upperclassman. The upperclassmen work as real estate agents in Shanghai, and their high-end real estate agents always hear some strange news from the rich. He told me that Bitcoin was bound to go up to $50,000 before Chinese New Year, which it did. I admire my seniors.
Around Jan. 20 of this year, I entered when Bitcoin was near $40,000. Because I like to gamble, I write contracts and never write less than 20 times leverage. Sometimes with 125 times leverage, Bitcoin goes up 1%, I go up 1.25 times. It is tens of thousands of investment, sometimes make ten or twenty thousand I take out.
But my margin is very low, drop 0.5%, gave me the forced liquidate position. Several times down, this wave I lost about 20 (ten thousand), seniors probably lost more than 80 (ten thousand). My relative lent me the money for a down payment, but fortunately he didn’t need me to pay him back for the last three years.
Now I finally understand that Bitcoin is a thing, I think it is not good or do not engage in. Win is a dozen, two hundred thousand, can not change the quality of your life, but also affect your mindset.
I recently invested some money in A shares, and my friends told me they could go up as much as 30% this year. But when I was playing Bitcoin, it would go up 30% in a day. Add leverage, it would go up 200%, and it would double in a day. Then you have no patience. Your patience is exhausted. It’s too much of a mind-set for investing.
I wanted to buy a Kawasaki motorcycle when I won, I paid the deposit, but now I don’t have balance payment on hand. In March, 50,000 yuan of private work, ready to earn more money, or to buy a motorcycle.
“I don’t understand bitcoin”
Happy Ear Cover, 32, Internet product manager, Beijing
I’ve heard about bitcoin for a long time, probably in 2011, because I’m an engineering major and I’ve always been interested in things in the tech industry. But at that time there was little money and no investment.
In 2015, I began to work as a product manager in an Internet securities company. From 2017, I began to focus on value investment. In recent years, the earnings of US stocks and Hong Kong stocks have been quite good, but I have never understood Bitcoin. But it was also around that time, right in the middle of the big rally in Bitcoin, that I really started to get into the currency world. At that time, all the blockchains were hot, and a lot of weird currencies were starting to do ICOs (initial coin offerings).
At that time I was still working in the Internet securities company, this aspect of the news attention is also a lot. I bought some ETH (Ethereum) and invested it in a coin that was about to launch for about $10,000.
At that time, the coin I bought had not yet started to go on the market. The other side said that they could choose to keep the coin in their hands or return the ETH they had invested. I chose to return it. When it was returned to me, the ETH had already increased by 5 times. But a month later, the coin I invested in was issued overseas and went up 100 times as soon as it was listed.
Later, I successively participated in the issuance of some coins and made some money. There was a huge demand for ETH, so I switched all my digital currencies to ETH, but in 2018 I switched to Bitcoin. Because I think if you compare precious metals, Bitcoin would be gold, and all the other coins would be similar to silver.
It was also around that time that I started doing more value investing in U.S. and Hong Kong stocks, the Buffett way of looking at company performance. I was thinking, I’m not going to invest heavily in digital currency anyway, and if I buy it, I’m going to spend a lot of time on it, so gradually I’m going to get less involved.
The most recent was around May of last year, when I bought some more bitcoin when production was halving and the price was around $5,000 to $10,000. At the time, there were two main reasons. One was speculation, because every time Bitcoin production halved, there was a rally. Second, I was considering using bitcoin as a safe haven asset like gold because of the severe global epidemic. I bought it fairly heavily and invested hundreds of thousands.
When the price rose to the $15,000 to $20,000 range, I liquidated all of my bitcoin holdings and accumulated a gain of about 50%. Later, I did not touch the digital currency again. I think my advantage in investment is still in the stock market, which is relatively reliable to buy, but I still do not understand the digital currency.
I also follow the market news feed of Bitcoin every day, and I know it has soared, but I don’t regret it. Some of my friends have made a lot of money, and they have told me some of the logic behind it, but I don’t think anyone’s logic is always valid. Anyway, this thing is not within my cognitive scope. If I could go back and make the choice again with some of the experience and logic I’ve gained so far, I would probably have cleared out early.
In the future, if the price is right, I will still hold a small amount of bitcoin if I have spare money. I think people who are serious about digital currency still have faith and have a set of cognitive system and logic behind it. I don’t have that, so I am conservative in this aspect.
“Overnight rich, often also overnight burst.”
Authentic rabbit head 31 years old, Shanghai, a big Internet factory
The first time I invested in Bitcoin was in 2013, when I bought 20 Bitcoins through Taobao trading, 600 RMB each.
I was doing industry research at the time, and I read a popular article about Bitcoin on an electronics forum, and 99% of the responses were cynical and skeptical. But I read it carefully and looked up a lot of relevant materials, including the white paper of Satoshi Nakamoto (the founder of Bitcoin). After reading it, I think this is a very, very high potential industry.
In 2015, I started to build a bitcoin position again, when the price was a few thousand RMB, and in 2017, when the price rose to 20,000 RMB, I completed my last short position. I have three digits of bitcoins in my hand and haven’t cashed out any of them because my psychological price for bitcoins is $200,000. However, when the price goes up to $100,000, I will reassess the situation and see if I can sell some of it.
In 2016, my parents gave me the money to buy a house, which was actually a good time to buy bitcoin. I originally wanted to put all my money into bitcoin, but later I decided to separate my money from my life and investment. Investing is a marathon. There’s no need to run too fast at the beginning and give up a lot of things you shouldn’t give up.
There are many reasons to be bullish on bitcoin, with complicated analysis, but one of my conclusions is that bitcoin may one day appear on the asset quotation board of the Lujiazui Ring Road as a regular and relatively stable bulk investment.
The January-February rally was really unusual because it broke through the biggest one-month rally in history, and I think that’s a bad thing. At Spring Festival, I was actually expecting Bitcoin to drop a bit, so it could go up to $50,000 to $100,000 by the end of the year. But during the Spring Festival, Bitcoin rose 20% in a single day, spurred by the arrival of Tesla. I don’t understand what’s going on, but I think it’s a bad outcome, because it will take longer to pull back now.
I am very calm about the recent ups and downs. I also know people in the coin circle who make money and then buy Rolls-Royce, but then disappear after a bear market. This kind of thing is actually a lot of, that kind of overnight wealth, often also overnight burst warehouse.
With investing, you have to be completely self-motivated to explore and research. But most people prefer to be a stretcher. I built my own computer to mine mine last year, not so much to find out how much, but to figure out the process. On the other hand, you can’t be a greedy person and gamble.