For most people, “Bitcoin” is no longer an unfamiliar term.
They may have heard the myth of getting rich with Bitcoin a long time ago, but for them at that time, virtual currency was just an illusory, unrealistic frontier concept that exists in the online world, far from the wallet or bank card account. Money is so realistic and tangible.
However, this perception has quietly changed in the first half of 2021. Under the leadership of “Dogecoin CEO” Musk, cheap zoo coins such as Dogecoin (DOGE) and Shiba (SHIB) rose from the ground, and quickly gained a place in the market with a growth rate of thousands of times. Hot search on Weibo gave birth to countless wealth myths. While breaking the circle of virtual currency, it also gave many Xiaobai opportunities to enter the market at low cost.
As a result, many people found that their friends circle began to frequently appear speculation-related content-it may be a public number article, may be a screenshot of an exchange, may be emotional about the ups and downs of a certain currency-regardless of whether these people have investment Experience, whether they are engaged in related work in the currency circle, and whether they have really made money by speculating coins, but they all revealed a message through the circle of friends: more and more ordinary people have joined the army of speculating coins.
Among them, there are stock market old leeks who have been in the investment field for many years but are depressed; there are also college students who have not yet stepped into the society and are eager to earn the first pot of gold in their lives; some drag a heavy body under the weight of 996. Urban white-collar workers, there are also small town youths who dropped out of school early and worked hard to find the code of wealth…
With the same purpose and firm beliefs, they entered this fresh, restless, yet full of opportunities circle as a zero-based white when the mood of the currency circle was in full swing, and became the “coin” in everyone’s mouth. Circle new leeks”.
Li Ran is a post-00s who was born and raised in a five-tier small county. He dropped out of school at the age of 17 to find a job in local advertising material production, doing the most basic inkjet photo and advertising design.
From 17 to 21 years old, when he was full of vigor and youth, Li Ran felt that he was trapped in this small county town with no future. With a salary of 2,000 yuan a month, working on a job that is extremely boring and has no room for development, the daily entertainment is to praise others for their bright and beautiful life on Douyin.
Until April of this year, Li Ran accidentally learned about Dogecoin through social networking sites. After seeing some people using 20,000 principals to get 200,000 and 300,000 yuan through speculation, he was overwhelmed by the turbulent wealth story. .
Why can’t I be the one who fights big and gets rich quickly?
On April 21st, Li Ran officially joined the coin speculation army with the 15,000 yuan he saved up hard.
In just two weeks, he watched the 15,000 capital rise to 42,000. Before he could celebrate, he immediately followed suit and sold all Dogecoins, and studded the Shiba (SHIB), which was popular in the community, and the money became 170,000 in less than a week. The wealth came too fast, Li Ranru fell into a dream.
Standing on the vent, dogs can also take off, not to mention that this wind is blown by “the world’s richest man” Musk.
During that period of time, there were many novices like Li Ran who lacked basic financial knowledge and ran into the market under the hot search of mainstream financial media and Weibo about the skyrocketing and wealthy information of cryptocurrencies.
In fact, in the past two years, the enthusiasm of ordinary people to speculate in currency has continued to rise, and more and more people have joined it, both at home and abroad.
South Korea is recognized as the most enthusiastic country in the world, and a unique term “Kimchi Premium” was born, which refers to the price difference between cryptocurrency exchanges in South Korea and other exchanges.
In the involuntary, dull and depressing Korean society, the society’s definition of success for young people is either to enter the government and become civil servants, or to squeeze into the chaebol companies that control the people’s livelihood as screws. However, both options have a prerequisite: Going to a top Korean university, this task is so difficult.
Therefore, in the eyes of many young Koreans, cryptocurrency is the only way for them to “turn over” to change their destiny. It is a gamble about class transition.
A new professional from South Korea once complained to the Asia Daily: “No matter how hard you work in the company, your wages have not risen much. Just like your parents, it’s impossible to buy a house as long as you work hard and save your wages. I don’t know when it will be. Being laid off by the company, I don’t know if the company will suddenly go bankrupt. The times have changed. If you don’t invest now, you may be a slave to the workplace for the rest of your life.”
Coin speculation has become an ideal way for young people with ordinary backgrounds and ordinary academic qualifications to realize the accumulation of primitive wealth in a short period of time, break the involution of the workplace, and release the pressure of housing supply.
Especially, when you face your peers who break into society without finishing high school, and are financially free only by mining and lying down to make money, you show off your “young and promising” in a disguised form; when you learn that your work ability is not as good as your colleagues, A classmate whose academic performance is not as good as his own, but in a leveraged gamble, he succeeded in turning four figures into five figures, jealous and uneasy, quietly planted seeds in my heart, and the choice of admission became natural. .
As the old end of the Bitcoin market in 2011 said:
For most people, it’s useless for you to show facts and reason with him. He won’t listen to your nonsense at all. The driving force that really makes him prepare for action is the “jealousness” that everyone has. They will think: Why can you get rich, I don’t have it? No, I want to get rich too. So he took out all the deposits in the bank and bought Bitcoin regardless of the price.
Virtual currency is peddling the “dream of getting rich.”
The cryptocurrency trading market is constantly refreshing 24 hours a day. When countless new leeks are swarming under the guidance of the wealth effect, the profits and losses are the same, and the hanging invisible sickle is inadvertently swung down.
On May 13th, Elon Musk announced that Tesla would suspend accepting Bitcoin payments. Immediately, the price of Bitcoin dropped sharply in a short period of time. On May 19, it fell to 29,000 US dollars per coin. Compared to the historical high of $64,000 per piece in mid-April, it can be said that it was an overnight return to the pre-liberation period.
Under the leadership of Bitcoin, all previously hot cryptocurrencies such as Ethereum, Dogecoin, and Shiba Inu coins have also plummeted, and prices are everywhere, and for a while, grief is everywhere.
Once the beautiful wealth bubble is burst, the market reveals its cruelty and indifference.
According to the cryptocurrency trading data platform bybt, on the 519 “Black Wednesday”, 880,000 people broke their positions during the market crash. The total liquidation amount reached 9.3 billion U.S. dollars, of which the largest single liquidation amount reached 6,700 Ten thousand U.S. dollars.
On social media, retail investors in the currency circle are mourning. Many investors were attracted by Dogecoin and other animal MEME coins in April and May of this year, and some of them suffered a cascading decline as soon as they entered the market.
“I cut the stocks and lost 20% in half a year. I wanted to regain my blood while speculating, but in the currency circle, I lost 40% in one day,” an investor complained on social media.
For those who look forward to the circle, the so-called “crash of the currency circle” can be called “Xi Da Pu Ben”.
On social platforms, many people applauded for this, “Seeing that you lose money is happier than I am honestly making money.”
Some people say, “Speculation won the rich and grinning, but now there is nothing so pitiful to lose”; some people say, “Dog gambling deserves it”; the game party said: “The price of graphics cards should come down.”
The capital market is supposed to be a group of professional people playing games with each other, but for follow-up investors like Li Ran who know nothing, behind the ridicule and ridicule of outsiders, it may be a roller coaster-like wealth fantasy or even bloody individuals. And family tragedies.
In this sharp drop, Li Ran saw that the 100,000 yuan he had finally gotten shrank to only 35,000 yuan in just a few days. He broke the jar under emotional breakdown and opened a futures contract in an attempt to quickly regain profits. Lost ground.
In order to keep a close eye on the market, he even quit his job and stayed up late to watch the market, but the liquidation text message still arrived as scheduled. A sharp drop on May 23 completely awakened him from the illusion of rich wealth.
In less than a month, the 15,000 he had saved over the past few years turned into 170,000 first, and then only 1,100 remained. It seemed like a dream. Li Ran returned to the starting point again, with nothing.
Li Ran is just the epitome of the new leeks in the currency circle. In an interview with Deep Wave TechFlow, many investors said that they entered the market when the market was craziest. They were very optimistic at one time. They felt that the currency circle is the place to pick up money. Shocked by the sharp drop on the 19th.
“I have never seen such a violent fluctuation before. It can fall by 50% in one day. It feels like the end of a crash,” Wang Dong said. He was frightened by the big fall and panicked and cut the meat. As a result, the market rebounded strongly the next day, and he regretted it. Endless.
Receiving the plate at a high position and cutting the meat at the bottom. This is the same operation trajectory of many new leeks in the coin circle.
“Now I finally understand that the essence of currency speculation is wealth transfer, from retail investors to market makers, from short-term investors to long-term investors, from new leeks to old leeks, from the faint-hearted to the daring. There,” Wang Dong sighed with emotion.
On May 23, the Information Office of the Dalian Municipal People’s Government held a press conference to inform about the situation of Dalian’s “5.22” car hitting a person and escaped. One sentence was, “The suspect Liu was unacceptable due to investment failure and lost confidence in life. , And then produced revenge social psychology.”
When the specific reasons were not yet clear at the beginning, many people’s first reaction when they saw this sentence was, is it possible that Liu lost money and was heavily in debt due to currency speculation, which led to a large psychological gap and retaliated against society?
It was later confirmed that the suspect embarked on a criminal path because he was frustrated because of the failure to invest in a barber shop. However, the first reaction of many people’s “failure to speculate” is also enough to prove that the currency circle of 519 and 521 is large. The decline has caused a certain potential social risk.
In fact, prior to this, the relevant state departments issued a series of documents to increase supervision, which is also considered to be one of the reasons for the collapse of currency prices:
On May 19, the China Internet Finance Association and other three associations jointly issued the “Announcement on Preventing the Risk of Virtual Currency Trading Speculation”, reminding the risk of virtual currency trading speculation and emphasizing that virtual currency trading is an illegal financial activity;
On May 21, the Financial Stability and Development Committee of the State Council further requested, “to combat Bitcoin mining and trading behavior, and resolutely prevent individual risks from being transmitted to the social field.”
Zhang Xiaoyan, deputy dean of Tsinghua Wudaokou School of Finance, said that the regulatory policies for Bitcoin and other cryptocurrencies are to protect small and medium investors and protect the hard-earned money of retail investors. “Cryptocurrency trading lacks effective supervision and prices are easily manipulated, leading to price fluctuations and violent fluctuations. There are a large number of retail investors in China. The common feature of small and medium investors is that they have little financial knowledge and lack of deep understanding of cryptocurrencies.”
In the “extremely greedy” market sentiment some time ago, traders usually opened leverage of five times or more. Many speculators, without knowing enough about the market changes, opened up to more than fifty times because of the mentality of getting rich overnight. Between leverage and gambling, one thought of heaven and hell.
Due to the fierce volatility of cryptocurrencies, in the United States and other countries, investment in cryptocurrencies through compliance channels usually has a threshold of qualified investors, requiring investors to have a certain risk tolerance and relevant professional knowledge.
When Xiaobai, who lacks financial knowledge and risk tolerance, joins the futures contract arena, like a giant streaking baby, staggering a few steps before falling to the ground, and then crying.
Some police staff said that the number of people calling the police due to virtual currency explosions has increased significantly recently.
According to the “Economic Information Daily”, an industry expert deeply hated and pointed out, “At the moment when trading platforms are generally registered overseas, taking effective measures as soon as possible on leveraged transactions will help to control risks in a timely manner, and it will also reduce some crazy investments. Rescued from the edge of the cliff.”
Just like the big wave scouring the sand, in the fast-changing bull-bear cycle, some people also entered the currency circle because of the wealth effect, but in the process of speculating the currency, they began to be interested in blockchain technology, DeFi, NFT, etc., and finally chose to join the industry. .
In the eyes of new entrants, blockchain is not equivalent to speculating coins. As an emerging industry that is still in its infancy, blockchain still needs to cross the river by feeling the stones for a long time in the future, supplemented by a healthy and regulated market. management.
From the perspective of career planning, here, young people can not only avoid the increasingly serious involution of traditional industries, but also become revolutionary pioneers, gain greater chances of success, and realize life value faster.
“In the industry I used to work in, if I want to obtain a certain wealth status, it takes ten or even twenty years of hard work to reach a predictable upper limit; but in the blockchain industry, everything becomes different. I can’t see the upper limit, and I don’t need to break through the class relationship step by step with years of work.”
A young man who has just graduated recently chose to enter this industry during this year’s time of bull-bear communication and turbulence. In her opinion, the emotional upsurge of currency speculation is only short-lived and false, and the potential of the industry itself is long-lasting. real.
“I hope to achieve financial freedom faster, and then do what I really want to do,” another practitioner in 1995 said when asked why he chose this industry. After working for three years, he has now accumulated a considerable fortune as a start-up capital, and quit his job in the first half of this year to start a business to fulfill his unfulfilled dream.
Deep Wave TechFlow also interviewed a practitioner who switched from traditional finance to the blockchain industry. When asked about the reasons for the switch, he replied:
“Of course, the initial motivation for joining this industry must be the wealth effect that far exceeds other industries. This may be the most human attraction, but as you continue to understand the industry, you will find that the blockchain industry is at a very early stage. The rapid development stage makes people seem to have seen the Internet era in 1997, full of risks and opportunities, which is very attractive to people who like to accept new things.”
It can be seen that the wealth effect, avoidance of involution and development prospects are the main reasons why people choose this industry.
Whether it is a newcomer in the currency circle or a new leek in the currency circle, the bargaining chips are changing hands between the bulls and bears. There are always newcomers coming in and the old people coming out.
The spring breeze is endless, and it is endless.
(The above names are all pseudonyms)
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.