Volume 4 Crazy Growth 2017 Chapter 882
In the last month of 2017, time passed quickly amid the ups and downs of the Bitcoin market.
Ever since the Bitcoin market transaction volume touched the 10 billion US dollar threshold for the second time, the market has been running wildly like a wild horse that has broken free from its reins.
I originally thought that the daily average trading volume of tens of billions of US dollars was already a highlight moment, but I didn’t expect that at the last moment of 2017, it was just the starting point of the market.
Just as Lu Sifang said, the entire market experienced great ups and downs, and at one point it soared by thirty points. The market value of Bitcoin reached 17,000 US dollars per coin, which is equivalent to the value of one Bitcoin in RMB, which has exceeded 110,000 yuan!
Such crazy performance is enough to make the entire market crazy. The news about the skyrocketing market value of Bitcoin has spread around the world under the promotion of interested parties from all sides.
Only when more and more retail investors come in to take over, can the many institutions that have been in the market for a long time take this opportunity to make a profit and exit successfully.
If the market value is just artificially high, but there are not enough retail investors to support it, then once the market starts to fluctuate, the market value will most likely fall like jumping off a building, falling to the ground with a thud...
However, under this wave of violent rise, in just two days, the market value of Bitcoin nearly doubled, skyrocketing by nearly sixty points. Such high-priced chips are enough to discourage some wait-and-see institutions.
I take over the orders that institutions dare not take, I speculate at the bottom that institutions dare not buy. My name is retail investor, remember it (funny).
With such a perfect opportunity to sell, it is naturally impossible that Zhou Dongsheng is the only one to flee. Many institutions and investors who have been lurking in the market for a long time could no longer resist the temptation and decisively chose to take profits and leave.
With chips priced as high as US$17,000 per piece, only blind retail investors would dare to enter the market to take over. Compared with investors who entered the market at a low point, this price is enough for them to make a fortune.
Lu Sifang naturally would not miss such a great opportunity. In just one day, he and his family alone had frantically sold off 100,000 chips, clearing out one-tenth of the position in one go.
And under the highly fanatical emotional surface, the sentiment of the entire market was unprecedentedly high, and the carrying capacity was unprecedented. Not only did it directly digest all the 100,000 chips, but other institutions that sold their stocks were also no exception, and were swallowed by the bloody mouth of the market.
With the joint efforts of all parties, on December 8, not only did the market value of Bitcoin reach a peak of over 18,000 US dollars, but it also created an unprecedented single-day trading volume of 21 billion US dollars!
At the end of the day, despite the sell-off from all sides, the entire Bitcoin market only fell slightly by -6.93%, which shows the strong market support.
As a result, many investors and institutions were so complacent that they had no intention of restoring market sentiment. The next day, they continued to sell off their stocks, which once drove the market down to $13,000...
If this downward trend is not stopped and the market sentiment collapses, then this will undoubtedly be the dividing point from bull to bear. One careless mistake will directly end this wave of accelerated market.
Fortunately, although the entire market is like a dark forest, and no one knows each other, the basic tacit understanding among high-end players still exists. All parties need to do is stop shipping and symbolically take a little bit of chips...
If you can slightly boost the market sentiment, a large number of retail investors will naturally come in to buy. For high-end players, this is undoubtedly a basic operation.
This is just like fishing. Even if the fish is hooked, you can't rush to pull it. If you pull too hard, it will either come off the hook or get cut. It's not impossible that the rod will explode if you're not careful...
Therefore, you naturally have to grasp the opportunity, pay attention to the rhythm of pulling and releasing, and play with the fish neither hurriedly nor slowly until the fish's physical strength is exhausted, only then can you complete the operation of reeling in the rod and put the fish in the bag safely.
Before this, the entire Bitcoin market could be said to be full of poles, with only two or three small fish. Now, with the massive release of money in this bull market, a large number of small fish from all over the world have poured into this market.
The nest has been dug and the fish are in. What remains is naturally a display of superb fish-controlling skills. Isn't the ups and downs of the entire market right now equivalent to playing with the fish?
Especially when it came to mid-December, the external environment of the market was shocked again after the Federal Reserve gave the global financial market the gift of a third 25 basis point interest rate hike of the year.
Once such major negative news was released, the entire external market environment was filled with bearish voices. All major stock markets around the world were affected, and a large amount of funds fled.
However, in an external environment where the main theme is bearish, the Bitcoin market stands out like a crane among chickens, appearing so fresh and refined, unlike other glamorous and cheap products in the market that fall at any time.
No matter what you buy, it is still an investment, so the first priority should be the ability to resist risks.
However, when the Federal Reserve's interest rate hike, a big move that can be regarded as a short-selling nuclear weapon, was baptizing the world, Bitcoin was able to remain unscathed. If this is not a reflection of risk resistance, then what is?
Under such circumstances, the result is naturally predictable. The entire Bitcoin market has completely stabilized at a daily trading volume of over 10 billion US dollars.
As a large amount of hot money poured in, countless institutions and investors who had been lurking in the market began to flee frantically, continuously selling off their chips.
With this in and out, the baton of the market has been smoothly handed over invisibly. The players at the table have been replaced, but the table is still very lively.
Coupled with the market characteristics of blockchain as a cover, the changes in this process are simply unknown.
However, the winners leave, the players change, and although the card table is still bustling, this illusion of liveliness is becoming increasingly hollow and may disappear at any time.
After all, there are gaps between players. The previous batch of players had enough capital and patience to hold on to their chips, but the new batch of players who took over are completely different.
Therefore, this bull market at the end of 2017 is undoubtedly the last madness of this round of market. As many institutions and investors have completed their profit-taking, a new round of market crash will surely come.
Just like the Bitcoin market over the past three years, it has entered a new cycle. When the market falls to a low point, some institutions and investors will enter the market again to build positions and start sharpening their sickles, waiting for the growth of a new round of leeks...
This goes on for three years after three years, which is roughly the cycle of the entire Bitcoin market.
After all, even though Bitcoin, which uses the gimmick of blockchain, is claimed to be a decentralized virtual currency, it is still impossible for it to deviate from the essence of currency.
As for what is the nature of money?
Perhaps it is that money itself does not have value. The value of money comes from human attribution. From shells in ancient times to today's virtual currencies, there is not much difference in essence.
At least legal tender is backed by the state, but virtual currency, which claims to be decentralized, relies entirely on the market for support.
Isn't this a test of human nature? Obviously, human nature can never stand the test.
Therefore, there needs to be the existence of laws to provide checks and balances. In this light, what the so-called decentralization actually is... is naturally self-evident.
From December until the end, Lu Sifang chose to prolong the battle line and completed the profit-taking in more than twenty trading days. More than one million chips were cleared and he successfully escaped.
Although the volume of millions of chips seems huge, it is only one-tenth of the entire market volume. Compared with "Satoshi Nakamoto", a super-large dealer who is not sure whether he is an organization or an individual...
It was not a big goal, and the chips were scattered among thousands of accounts, operated by multiple traders, and lasted for 20 trading days...
Such a meticulous series of operations is enough to reduce its own size to a minimum and avoid attracting the attention of certain interested people, especially in this small piece of land on the other side of the ocean.
Although Bitcoin is said to be decentralized and its anonymous transactions are highly secretive, the US dollar is not, and its flow in the market can be traced.
As rule makers, they will naturally abide by the rules when they are in their favor, and they will naturally change the rules once they pose a threat to them...
The so-called American double standards are probably like this, so it’s not wrong to be careful. After all, you are cutting leeks on someone else’s territory. How can you expect others to reason with you?
For Zhou Dongsheng, who has experienced the baptism of American double standards, it is more realistic to hope for pie in the sky.
After all, in the future, whether it is the oligarchs of the Russian bear market or the many retail investors who fought back, the fact that their Internet cables were unleashed in a blatant manner has proven this truth in practice.
As for events such as sanctions and seizures, there is no need to elaborate on them.
For this reason, Zhou Dongsheng and Lu Sifang determined a complex operating method from the very beginning, striving to minimize the risks.
So far, the results have been impressive and everything is worth it.
After a complete review and settlement reported the latest battle report to Zhou Dongsheng just before the New Year.
“Chairman, since we entered the market at the end of 2016, the cost of building a position has risen from 636 US dollars all the way up, and finally we completed the goal of building a position of one million bitcoins at a cost of 2014 US dollars per bitcoin…”
“Then we started shipping bitcoins in December 2017, shipping an average of 40,000 bitcoins per day. It took us 25 trading days to successfully sell off a million bitcoins, and the final average transaction price was maintained at $17,173…”
"After deducting costs, the total profit is more than 15 billion US dollars! Fortunately, the mission has been accomplished!"
Although he had stayed up all night, Lu Sifang was still very excited.
After all, with such a brilliant record and those exaggerated numbers in the battle report, as a professional, Lu Sifang naturally knew very well how valuable this record was.
The mastermind behind all this is Zhou Dongsheng, a young man in his early twenties, who is far away on the other side of the ocean!
The word "genius" is not enough to describe our boss, he is simply a financial wizard!
Lu Sifang couldn't even imagine how much of a shock this would cause around the world if it were to get out. Just thinking about it made him tremble with excitement.
A private equity fund generated more than 10 billion US dollars in profits in just over a year. The most important thing is the rate of return!
Profits of tens of billions of US dollars are nothing compared to those large funds with a size of hundreds of billions of US dollars, not to mention a drop in the bucket compared to the world's largest fund, BlackRock.
After all, the funds they manage start at trillions of US dollars. With such a large amount of funds, if the annual return rate can reach more than ten points, it will already be a terrifying return of hundreds of billions of US dollars...
In comparison, isn’t the size of Zhou Dongsheng’s private equity fund just a drop in the bucket?
In the entire private equity fund, apart from Mr. Duan, there is only Zhou Dongsheng as the investor. If rounded off, isn't that equivalent to a small and micro enterprise in the overseas market?
Among them, although Mr. Duan invested 1 billion US dollars in principal, Zhou Dongsheng naturally took the lion's share of the profits .
As we all know, private equity funds generally charge a management fee of about 2% of the total funds and 20% of the investment profit as commission income.
Of course, this is under normal circumstances. Given Zhou Dongsheng's cunningness, it is impossible for him to give up the fat meat in his mouth.
However, if you want to use a chicken to lay eggs, you naturally have to pay a small price.
In order to maximize the benefits, the best way is naturally to enter into a gambling agreement. For this reason, Zhou Dongsheng specially added a gambling clause to the agreement.
Once the fund return reaches more than 100%, the share ratio will increase step by step from 20% to a maximum of 40%!
Of course, as a condition of the bet, if the fund's returns are not ideal or even incur losses, Zhou Dongsheng will naturally need to pay a corresponding price to compensate the investors for their losses.
As the saying goes, business is business. The fact that Duan Yongping has been able to dominate the financial market for many years and earned the nickname "Eastern Buffett" means that he is destined not to be a sucker.
It is even more impossible to give 1 billion US dollars to Zhou Dongsheng for nothing. Even if it is his own son, he would not be treated like this...
Such gambling clauses are not uncommon in private equity funds. After all, if you want the horse to run, you have to feed it grass. From the perspective of investors, this is equivalent to an incentive clause used to encourage fund managers.
Judging from the current situation, it is natural for Zhou Dongsheng to get the highest share ratio.
In other words, the profits are roughly divided as follows: Zhou Dongsheng, as the manager, first takes 40% and 2% of the management fee, and the remaining part is then divided among the investors according to their investment ratio, that is, Zhou Dongsheng and Duan Lao.
In this way, it was natural for Zhou Dongsheng to take the lion's share. After all, he contributed both money and effort. All in all, Zhou Dongsheng's net profit exceeded 70%, while Mr. Duan, who contributed the majority of the funds, enjoyed less than 30% of the profit.
Even so, Zhou Dongsheng, who was using the chicken to lay eggs, still helped Mr. Duan make a fortune, and everyone was happy.
Such a perfect record, as long as a little bit of news was leaked to the outside world, would be enough to attract countless investors who would willingly hand over their money to Zhou Dongsheng for management.
Even if I have to pay a very high management fee and profit-sharing ratio, I will do it without hesitation.
After all, money is hard to earn but shit is hard to eat, this is the law (funny).
