Bitcoin's total market value exceeds $10 billion, investors should be cautious on two points

The market value of Bitcoin has also seen a significant increase recently. In the past two weeks, its US dollar exchange rate has soared from US$500 to US$700, and its total market value has also exceeded the US$10 billion mark.

On June 13, according to data from the OKCoin trading platform, the highest trading volume of Bitcoin was about 1.83 million, a three-fold increase from the trading volume in early May. From the trading volume of the OKCoin platform, it can be seen that Chinese buyers have once again set off a Bitcoin buying frenzy. In addition, the strong demand from Chinese buyers has caused the domestic Bitcoin price to be nearly 5%-8% higher than that of foreign countries.

Since the price increase was first seen on OKCoin and other Chinese RMB trading platforms, it cannot be denied that this round of price increase was driven by Chinese buyers, but the growth in demand for Bitcoin is a common phenomenon around the world. In addition to being used for commodity consumption, the biggest use of Bitcoin may be international remittances.

In the past 2015, and even from 2016 to the present, Bitcoin's performance has been remarkable compared to other currencies or commodities.

However, although Bitcoin has performed well, people from the Bitcoin trading platform OKCoin remind ordinary investors to still enter with caution for the following two reasons:

1. High volatility and high risk

In response to the recent rise in Bitcoin prices, OKCion partner Hu Zhibin reminded Bitcoin investors that there is no price limit mechanism in the Bitcoin trading market, and the price is completely determined by the market. In this trading situation, looking at historical trading data, it can be seen that Bitcoin prices are soaring and plummeting at the same time, and can even soar 40% in 3 days, and then plummet 50%. Therefore, Bitcoin investment is high-risk and high-return, and requires careful and self-disciplined control.

2. 24-hour trading, all year round

This does not constitute a disadvantage in itself, but it may still have an impact on the lives of participants, especially those who engage in short-term speculation. As mentioned above, Bitcoin fluctuates greatly, so participants need to watch the market frequently, which may lead to not being able to rest well at night, especially when major events occur at night.