Bitcoin: 2020 debut

In 2020, the world is still not peaceful. At the beginning of the new year, a geopolitical crisis broke out: On January 3, U.S. forces launched drones and rockets to attack the Baghdad International Airport in the Iraqi capital, killing at least 8 people, including the elite troops of the Iranian Islamic Revolutionary Guard "San "City Army" commander Casim Suleimani.

Sulaymani is not an average Iranian commander, and his reputation and power is said to be third in Iran, second only to Iran ’s supreme religious leader and president, and he is considered a potential future leader of Iran. He has significant influence both inside Iran and in the Middle East.

Suleimani's death was a heavy blow to Iran, meaning a reversal of the situation in the Middle East and could cause Iran to retaliate severely against Israeli and US interests in the Middle East.

Immediately after the incident, gold jumped to more than 1,500 US dollars, as of the time of writing, it rose to 1552 US dollars, and silver also jumped to more than 18 US dollars.

At the same time, Bitcoin jumped 7% and stood at $ 7,300. As of the time of writing, Bitcoin has exceeded $ 7,400.

This time Bitcoin's jump has not only attracted high attention in the currency circle, but also attracted the attention of well-known fund managers in traditional financial markets.

Pacific Capital CEO Peter Schiff tweeted "Heightened geopolitical risk has resulted in both gold and bitcoin moving higher", which translates to "tense geopolitical crisis causing gold and bitcoin to rise."

But the traditional fund manager still expressed some disdain for the rise in Bitcoin. The second half of his Twitter was "but for different reasons. Gold is being bought by investors as a safe haven. Bitcoin is being bought by speculators betting that investors will buy it as a safe haven".

The translation of this passage is "but the reasons for the rise are different. Gold is bought by investors to hedge risks, while Bitcoin is bought by speculators because speculators think investors will buy it to hedge risks"

In the eyes of the fund manager, he still believes that Bitcoin is just a speculative tool for speculators.

But in my opinion, the main reason for this Bitcoin jump is that everyone hedged against the geo-crisis buying, because Bitcoin jumped at the same time as another noteworthy event: local bitcoins in Iran's OTC trading platform. On com, the price of Bitcoin needs about 1 billion Iranian rials (IRR), which is about 23,100 US dollars based on exchange rate calculations.

This price is more than three times the price on coinmarketcap, which shows that the Iranian people are desperate about the situation and have a high consensus on Bitcoin.

Since the inauguration of U.S. President Trump, the economic sanctions and embargo on Iran have been restarted, causing the Iranian economy to continue to deteriorate and the currency to depreciate sharply against the U.S. dollar. In the case where it is difficult for the ordinary people to obtain U.S. dollars, they can only chase gold and bitcoin for Asset preservation.

At the same time, the Iranian government found that Bitcoin can bypass the US dollar system to alleviate the predicament caused by the sanctions to a certain extent, so it announced the legalization of Bitcoin, which directly led to a surge in demand for Bitcoin by the Iranian people.

The root cause of the Iranian Bitcoin price so much more than the normal price is that the vast majority of exchanges in the world have blocked transactions from Iran. This has forced the Iranian people to buy and sell through over-the-counter transactions, so 20,000 appeared in Iran. A bitcoin phenomenon against the US dollar.

I used to think that Bitcoin's first big show after 2008 may appear in the 2020 U.S. stock bubble burst or a financial crisis, but I did not expect that the geopolitical crisis in the Middle East caused Bitcoin to show its first show in 2020. .

Although the rise of Bitcoin in this geopolitical crisis is not high, the direct impact of the crisis on the price of Bitcoin and the surprisingly high price of Bitcoin in Iran have fully demonstrated the consensus and trust of people in the crisis.

Bitcoin's consensus is strengthened and deepened through such crises and emergencies time and time again.

This is how gold has come step by step. Gold has taken 5,000 years. Bitcoin will also come step by step like this, but the time will be shorter and the consensus formed will be stronger.