The pizzas I bought with 10,000 bitcoin.

As the world's first open-source encrypted electronic currency, the market value of Bitcoin has risen 21,100 times-fold in the last three years. That some poor lad's 2010-year-old 10,000-bit pizza is worth more than 6.33 million dollars today, and this regret will continue to ferment with the appreciation of Bitcoin.

The soaring value of Bitcoin also spawned a lot of fascinating stories about wealth creation. The young man bought the bitcoin for a few years to shake the millionaire; the homeless live by Bitcoin; technology enthusiasts serve as gold on the internet for the future, and in a property that has just opened in Shanghai, they can even buy a house with a 1:2,100 dollar exchange rate.

Will the madness of Bitcoin become the next investment myth in the market?

Bitcoin again on the crazy myth

The value of Bitcoin in the last year is like a rocket. Since the advent of Bitcoin in 2009, as a virtual currency has not been the traditional market too much attention, April 25, 2010, Bitcoin first public trading, the market price per bitcoin was 0.03 U.S. dollars. However, after February this year, the sharp rise in the currency exchange rate, immediately aroused concern. In the current trading price of 633 U.S. dollars, the 3-year Bitcoin dollar exchange price rose 21,100 times times.

Information Times reporter yesterday in the world's largest Bitcoin trading platform Mt.Gox saw that the current 1 bitcoin transaction price of about 633 U.S. dollars, according to the domestic Bitcoin trading platform data show that the current 1 bitcoin domestic transaction price at 4250 Yuan. According to senior Bitcoin investors, the world has a total of 21 million Bitcoin, the current market circulation of 10 million, in accordance with the price of 633 U.S. dollars, Bitcoin's total market value as high as 6.3 billion U.S. dollars.

In August this year, the German government took the lead in formally acknowledging bitcoin's legal "currency" status, which could be used for tax and other legitimate purposes, while the world's first bitcoin ATM machine had been put into use at the Canadian Capital Vancouver Center.

And in Shanghai Pudong a property, now also began to accept the Bitcoin payment purchase. If the buyer needs to use Bitcoin to pay the house, then the renminbi-denominated house price will be converted into Bitcoin into the real estate company's Bitcoin account, while the exchange rate is calculated according to the day's market.

Reporter yesterday in Taobao saw, Bitcoin trading, mining professional graphics card, coin mining machine and other equipment have transactions. The price of a coin-digging machine ranges from two hundred or three hundred yuan to 200,000 yuan. One of the latest type of coin mining machine 400G price 200,000 yuan. A seller's customer service told reporters that the mining speed of the machine 10g/s 24 hours a day to dig up to about 0.03 bits, and 13g/s machine according to the current full network of power and difficulty, 24 hours a day to dig about 0.035 bitcoin.

It is understood that the Bitcoin market has been the first rising market, and the rapid rise. In the so-called "China's largest" bitcoin trading platform "bitcoin China", the price of bitcoin exchange prices soaring trend is staggering. November 4, a bit currency convertible more than 1400 yuan, two weeks after the November 18 rose to nearly 4000 yuan, or nearly 200%. 19th, has climbed to a bitcoin exchange of 7000 Yuan high. Yesterday, the site showed that the latest trading price of Bitcoin RMB is 4250 yuan, with more than 50,000 bitcoin transactions.

Why is bitcoin so crazy about the rally? Analysts point out that one of the incentives is that a number of positive news announced on 18th, including "Bitcoin China" announced a round of investment from the speed of light An Zhen China venture capital and the U.S. speed of light venture investment, the total amount of financing amounted to 5 million U.S. dollars; and representatives of the Justice Department and the SEC said Bitcoin was a legitimate financial instrument.

Expert opinion

The concept of Bitcoin in the domestic speculation more hot, originally in the geeks in the popular Bitcoin suddenly from a small crowd into the public's vision, then, the bitcoin is suitable for ordinary people to invest it? The expert's view may pour cold water on some eager ordinary investors. UBS's art Cashin likened the interest in bitcoin to the tulip mania of the 17th century, which led to many financial bankruptcies.

Bit-currency policy is extremely risky

Wan, a member of the Hong Kong Securities Institute Committee, said bitcoin was at great risk that Bitcoin itself was the virtual currency of the network, and that only a small number of countries recognized the legality of Bitcoin, which was not guaranteed on the whole. In the middle of this year, California's financial institutions decided to issue a restraining order to the Bitcoin Foundation, saying the organization was suspected of illegally transferring assets.

National Senior financial planner Xu Zhengguo also told the information Times reporter, Bitcoin can not become a legal currency in China, more like a collection, suitable for niche market. In addition, Bitcoin is not a kind of real, there is a certain degree of honour and protection risks, so the ordinary investors do not have a high investment and collection value. Although Germany has now recognized Bitcoin as a legitimate currency, it has been classified as an illegal currency in other countries, such as the Thai government's direct characterization of it as illegal and prohibiting its circulation.

"Digging" may be beyond the means.

Martin, the holder of Bitcoin, told the information Times reporter that Bitcoin has two ways to get it. One is "digging", using a personal computer to download software and then running a specific algorithm to communicate with a remote server to get the corresponding bit currency. The other is buying on the trading platform. Today, some people have used the "digging" means to obtain Bitcoin.

Martin said that while Bitcoin allegedly generates a block every 10 minutes, it has tens of thousands of people competing, that is, the gold digger may have to dig for five years to get a chunk. "Digging capacity is in fact the Battle of mining computer equipment performance, today it equipment updates faster, hardware quickly outdated, if the mine failure, never make the cost." ”

Transaction value is weaker

Xu Dong, a research expert at Alibaba's Institute of Micro-Finance, said in an interview with the information Times reporter that Bitcoin is not suitable for ordinary people to invest. In his view, the current price of Bitcoin in spite of soaring, but very unstable, a lot of volatility. As in the bitcoin market nearly 3rd, the price of bitcoin suddenly surged to a high of $900 on November 19, but then plunged to around $500 and then rebounded to more than $600 trillion yesterday.

Xu Dong that the current price of Bitcoin rose or also with the recent Bitcoin used by some countries as money-laundering tools. In China, from the earliest "digging machine" began to hot, and then a lot of fans and speculators into the market on the bitcoin has a certain real demand, which is the basis for the rise of Bitcoin.

Xu Dong that, because the amount is limited, Bitcoin is more similar to gold, its transaction value is weaker, the price will continue to rise and fall.

Boom plunging behind or there's a dealer trader

Xu Dong said that because the acquisition of bitcoin from the "mining" began, and now more is the use of collective mining in the way. Then, once in the market, a dealer, a monopoly on the market more than 51% of the bitcoin ore, he has the right to tamper with Bitcoin trading records, may be the global bitcoin price operation.

"A lot of private money in the mainland lacks a way out, but Bitcoin may not be a good destination." Wan, a member of the Hong Kong Securities Institute Committee, said, "There may be a lot of investment banking or fund intervention behind the sharp plunge in the bitcoin exchange rate." In addition, the lack of policy supervision, ordinary investors face great instability, if the big dealer shipments, small investors at any time to face extinction. ”