Volume 4 Crazy Growth 2017 Chapter 804: Early Ignition
Zhou Dongsheng was shocked when he heard this. The undercurrent in the virtual currency market was surging. Could it be that it came so quickly?
"How much has it increased?" Zhou Dongsheng asked impatiently.
In fact, Zhou Dongsheng’s understanding of the entire Bitcoin market is just the tip of the iceberg, whether it is the entire iceberg on the sea surface or the undercurrent of the dealers fighting deep under the sea...
Zhou Dongsheng knows very little about this, but the extremely high future expectations alone and using it as an anchor are enough to become Zhou Dongsheng's main motivation for holding a large amount of Bitcoin.
Looking at the entire virtual currency market, it is undoubtedly a paradise for adventurers. Speculators who love venture capital are everywhere. However, Zhou Dongsheng is like a clear stream among them, "betting" on the future with the concept of value investment.
Such a market, which allows 24-hour non-stop trading and has no limits on price fluctuations, is like an ever-changing sea. It may be calm one moment and violent storms the next.
However, there is obviously still a huge gap in terms of volume. Looking at the entire Bitcoin market, the daily transaction volume at most fluctuates around hundreds of millions of US dollars, and sometimes even only tens of millions of US dollars.
Generally speaking, a small size means that the chips available for trading in the entire market are very limited, and there are relatively few players involved, just like an unpopular and niche stock in the stock market, with few customers.
Therefore, even if Zhou Dongsheng has enough funds to invest, he must spend enough time to search for chips in the market.
If there are only tens of thousands of chips circulating in the market every day, then no matter how sufficient the funds are, it is impossible to create hundreds of thousands of chips out of thin air.
The so-called buying and selling relationship means that there must be someone to sell before there can be a buyer. This is simple supply and demand.
The supply and demand of the entire Bitcoin market has undoubtedly maintained a relatively balanced relationship after three years of sedimentation. Although people come and go in the market, there are still basically the same players.
Whether holders or traders, most of them hold a wait-and-see attitude. Once the situation is not right, they may scatter in an instant like a frightened bird.
The appearance of Zhou Dongsheng was like a weight that tipped the balance of the scale. With his entry, the balance of the market began to tilt.
Since Zhou Dongsheng has invested a lot of money in Bitcoin, no one will shoot him down even if he sneaks into the village.
As it continues to sweep and increase its positions, the chips available for circulation in the market continue to decrease, and the supply and demand relationship is quietly reversed.
Even though the unique decentralized nature of blockchain makes the entire market like a dark forest, where you can’t see me and I can’t see you, the reaction will naturally be slow.
But no matter how slow the market reaction is, no matter how slow the players in it react, the continuous decrease in the number of chips circulating in the market is something that everyone can see.
When the market supply and demand relationship reverses and demand exceeds supply, prices will naturally rise!
This simple truth is also effective when applied to Bitcoin transactions. When more and more people realize that someone is buying up the market, the entire market will naturally be affected .
Bitcoin, which had just broken through its historical high and reached $1,000, not only did not show any signs of decline, but it also maintained a steady upward trend, constantly refreshing its "historical highest price."
The market logic is also very simple. When you hold a commodity, there is a businessman in the market who keeps selling it at a high price. He will accept all offers and buy as much as he can.
At the beginning, everyone might be very happy, thinking that making a small profit is enough, and that it is enough to sell the goods and put the money in the pocket.
However, when it had cleared out all the goods on the market, its appetite remained unchanged. Even when prices had been rising and the purchase price had almost doubled, it still bought them.
At this time, most people will realize that the value of this product far exceeds their expectations!
Once they realize that it is profitable, most holders don’t mind waiting a little longer to see if the price will rise further. Those who sold too early will start to wonder whether they should buy back at a high price after seeing the price rise a lot again…
As the saying goes, any market changes are definitely not the result of a single factor, but are inevitably formed under the joint action of multiple factors.
When the entire market reaches a preliminary consensus and everyone is optimistic about the market's future growth, the sell orders in the market decrease sharply, while the buy orders increase steadily, forming a seller's market!
Given the consensus that the total amount of Bitcoin remains constant, the chips are always limited, and the holders are unwilling to sell, so the price will naturally continue to rise!
If this kind of "abnormal fluctuation" were regulated, the regulatory authorities would have issued warnings, indicated risks, or even inquired...
However, in this market, this is obviously not the case.
Therefore, the emergence of Zhou Dongsheng, a variable, coupled with his continuous buying spree, has become the fuse that ignited the Bitcoin market, causing Bitcoin, which has been dormant for three years, to suddenly begin to soar!
"Chairman! Just now, the market value of Bitcoin exceeded 1,500 US dollars, and the daily trading volume soared to 933 million US dollars, almost breaking the 1 billion mark. The entire market is more active than ever before!"
Lu Sifang said excitedly. After all, everything was developing too fast. Zhou Dongsheng had invested heavily in the company and persuaded a fund worth 1 billion US dollars. In addition, he kept increasing his holdings...
All in all, it hasn’t even been half a year yet!
However, for Lu Sifang, who scraped together one million US dollars and completed the position at US$619, his floating profit has reached 142%, and after deducting the principal, he has earned nearly US$1.5 million!
In less than half a year, I have already completed my small goal of earning a million dollars a year ahead of schedule, and I made a lot of money!
The rapid secretion of adrenaline and the intoxicating feeling made Lu Sifang deeply appreciate the charm of the financial market for the first time.
Although Lu Sifang has rich experience in the industry and has managed a considerable amount of funds, not to mention the distant past, the amount of funds that Zhou Dongsheng has asked him to be responsible for is nearly 2 billion US dollars!
With such a huge amount of capital position, a fluctuation of just 1% would result in a profit or loss of tens of millions of US dollars on the books. However, to Lu Sifang, it seemed like just a string of insignificant numbers, and he was not too upset.
This is undoubtedly also a necessary professional quality for most financial practitioners, just like bank tellers handling millions of cash every day. They may feel it is new at first, but will become numb over time.
After all, only by paralyzing yourself can you handle work calmly and be competent for this position.
The same goes for Lu Sifang. Apart from being sensitive to numbers, those numbers are just numbers to him.
But putting it in your own pocket is another matter...
It's been less than half a year and they've made so much profit. It's almost like robbing money. As for the boss's profit, it's almost like robbing a bank.
After all, no matter which bank you rob, you can't get hundreds of millions of dollars in profits!
Lu Sifang then reported: "On the premise of firmly implementing your investment policy, Chairman, we have diversified our holdings and the number of bitcoins we hold has exceeded 500,000. Of course, the cost of holdings is inevitably rising..."
"But even so, the paper profit has reached 60 points, and the profit is nearly 300 million US dollars. Currently, one-third of the funds in hand have not yet entered the market..."
When talking about work, Lu Sifang regained his composure, reading out data like an emotionless machine, but he couldn't help but feel a slight movement in his heart.
The amount of funds between the two is like a true portrayal of retail investors and institutions. Although it is difficult for large amounts of funds to achieve amazing returns, the returns are still considerable due to their financial advantages.
The advantage of small-scale funds is their flexibility, which allows them to successfully enter the market and build positions when the price is low.
It turns out that being too big is not good either. I just put my head in and it couldn’t go in anymore!
Hmm? Something seems wrong.
Zhou Dongsheng jokingly said, "If we calculate it based on 21 million, we have only got a little over 2% of the chips, which is still far from triggering the 5% placard mechanism."
"However, the number of Bitcoins mined today is only over 10 million. Excluding Satoshi Nakamoto, a big dealer who may hold millions of chips, the number circulating in the market is even more limited..."
"So, with our 500,000 chips, we can be considered a not-too-small banker."
Zhou Dongsheng said calmly that although he had already made several small profits, for virtual currency alone, this was obviously just an appetizer.
There is no need to wait until several years later when the price of the coin will skyrocket to tens of thousands of US dollars and it will be hard to find one. Just based on the future expectation of 10,000 US dollars...
There is still a vast space for growth, and the sky is the stage for Bitcoin.
"That's right, so Chairman, should we continue to increase our positions? In the current hot market, the entire market is priced but not sold. It is very costly to continue to chase the rise. It is hard to say how long this short-term market can last. Should we wait and see and wait for a correction..."
Lu Sifang analyzed calmly that after all, although the operation of chasing rising and selling falling is high-risk and high-return, one can easily give up the profits that have already been obtained if one is not careful.
"I will definitely increase the amount. I will not stop until I have used up all the bullets in my hand. As I said before, I am optimistic that the market will continue to perform steadily and improve, but..."
Zhou Dongsheng pondered for a moment, and vaguely felt that he had grasped something. "We already have 500,000 chips in our hands. If there is any rush, it's not us."
"I believe this round of market fluctuations should have alerted many institutions. These hyenas will not easily give up any profitable possibility."
"Perhaps it is precisely because of this off-market factor that they are eager to get on board that this round of rise is indirectly driven. For those who are already on board, they may also want to take this opportunity to get more chips..."
"The drama of clearing out retail investors will probably happen from time to time. A small correction in the market is possible, but if there is no major ."
Zhou Dongsheng sorted out his thoughts and realized that the reason why Bitcoin will rise sharply in the future may be because in this process, the chips are highly concentrated in the hands of institutions.
Precisely because chips are highly concentrated and circulating in the market is very limited, it is natural for the market to accelerate and skyrocket under the joint efforts of big and strong dealers.
After all, driven by common interests, everyone will naturally reach a consensus. Only by continuously raising the price can more lucky people be lured to come in and take over.
And this time, in this process, Zhou Dongsheng undoubtedly played the role of the banker!
At this moment, Zhou Dongsheng suddenly had an epiphany. The so-called "decentralization" was undoubtedly the biggest cover-up , a huge lie that could continuously fool those who came after him.
Once the chips are highly concentrated, for example, Satoshi Nakamoto, who holds millions of chips, is he considered a center? In this unregulated market, the rise and fall of the market can even be manipulated by him, all depending on his personal mood.
Perhaps blockchain itself is indeed a great technology, but the virtual currency derived from it is obviously not mature. To put it simply and crudely, the water is very deep and normal people cannot grasp it.
Moreover, once this market without any moral principles wields the sickle, it will surely kill everyone and uproot the leeks, which seriously violates the idea of the sustainable development strategy.
It is understandable that such a violent act of cutting leeks would be banned. After all, it is better to keep the money within the family.
Ahem, thinking of this, Zhou Dongsheng suddenly felt a sense of justice. In this case, if he could reap more profits from the cryptocurrency circle, wouldn’t it be a way of “saving the country in a roundabout way”?
After successfully convincing himself, Zhou Dongsheng said to Lu Sifang.
"I'll just chase the rising and sell the falling, but I'm a pixiu, I only go in and never go out! Let's set a small goal first. I can stop when I have a position of one million coins. I don't mind doubling the current cost."
We are not greedy. We only want to take a sip from the vast ocean. For 21 million coins, it is not too much for us to take a fraction. It can also prevent us from having too many chips in our hands and affecting other dealers to enter the market to carry the sedan chair.
When Zhou Dongsheng said this, he undoubtedly showed his determination. Lu Sifang was also excited when he heard it, and had endless imagination about the future prospects.
I wonder what the chairman's target price is? Four thousand dollars, or five thousand dollars?
If that's the case, I might be able to make a few million more...
However, after witnessing the ups and downs of the market these days, Lu Sifang has completely given up the idea of increasing leverage. After all, the risk of a margin call is too great.
Now that I have easily doubled my capital, there is no need to give the profits back to the market just because I made the money too quickly.
And with Zhou Dongsheng igniting the market in advance, the accelerated rise in this round of market conditions was far more ferocious than expected!
