The Bitcoin craze in 2017 was back when the cryptocurrency officially hit a new peak of $ 33,000, bringing the total market capitalization of the Bitcoin market to about $ 575 billion. JPMorgan financial institution even predicted that Bitcoin could hit $ 146,000 in the long term if it continues to attract gold buyers.
There are many reasons given by economists for this new swing of Bitcoin, leading from specific causes such as the influence of Covid-19, Brexit (Britain leaving the EU), the impact of the US and China, open legal regulations with virtual money (cryptocurrency) …
Bitcoin peaked, causing a stir among investors
However, no need to be an economist, one knows that the total number of Bitcoin in the world is limited to 21 million. Once the farmers are depleted of these coins, there is no longer any supply left for mining.
That is also the reason for the past few years, not until now, that Vietnamese plows have surrendered to Bitcoin and switched to other cryptocurrencies. Even though there is a greater buying demand in the market today than mined output, there is an average of 900 Bitcoins per day globally.
The reason is that the Vietnamese buffalo system cannot be compared to the Chinese plow staging, which can be placed in ideal cold weather conditions to maximize costs. That is not to mention, the scale of the Vietnamese buffalo factory loses far from China, leading to a longer payback period.
But the mining world did not show interest, but when the dead buffalo piled up after many Bitcoin bubble bursts.
Also, unlike investors who just throw money in, plow people must be knowledgeable about virtual money, understand how to operate electric lines, the most important thing is to know how to select and optimize buffalo plows, i.e. Overclock the video card (VGA) for maximum performance possible without damaging the device.
In addition, due to the small capital, the plows are always afraid of cryptocurrency fluctuations, because they are forced to dig out how many coins they sell to pay operating costs. Subtracting the monthly cost plus the initial investment to buy buffalo and plow, the new plows break even and earn interest after a certain number of months. This is not to mention the loss of white due to collapsing the floor or the coin goes down, the more losses you dig.
That is, theoretically, long ago Bitcoin miners surrendered to this coin and moved to other emerging coins like ETH. However, a plow farmer said that the profit from ETH is still very “sour”, investing in a buffalo array costing about 30-40 million VND, earning from 10-19 USD has not deducted costs. The payback time is largely dependent on the price movement of ETH, which is just as erratic as Bitcoin.
Citing the sour story 3 years ago before pouring 5 billion VND to invest in a staging 100 green buffaloes at a time of soaring buffalo prices, Mr. Hieu Van (Ho Chi Minh City) said that in the end, he had to bite his teeth to cut losses, only to collect about 500 million dong to sell buffalo dead body after a few months.
Only active buffalo drivers are active at this time.
In fact, the moment Bitcoin is on the rise is also the time when the old plows sell their buffalo to take profits and switch to a new crop or invest in other fields. Meanwhile, buffalo drivers (referring to VGA dealers) are the ones who are very active in buying and selling at this moment. Citing the funny story of the 19th century when the Americans rushed to dig gold and a shovel seller became a billionaire, the buffalo driver Jacky Nguyen (Vung Tau) advised everyone if you have free money, invest to miss it. capital loss, money loss also does not affect life.
At the same point, investor Thien Hoang also advises everyone to stay awake, avoid greedy blindness, swing the top of the coin at an impossible peak. The governance of a coin group with more than 100,000 members concludes that Bitcoin’s price increase this time is virtual due to pumping, not the actual supply and demand. He also assessed that grass coins (altcoins) will be hard to follow, except for project coins guaranteed by a government or reputable organization.