My fintech empire.

Chapter 1222 [Drive Them to the Cryptocurrency Market]

The current depreciation pressure of the offshore RMB in the foreign exchange market appears to come from the continued strength of the US dollar index and the outflow of foreign capital, but in fact it is the outflow of domestic capital. Runren, Zhuren and those who are afraid of being liquidated are transferring huge amounts of wealth overseas.

In particular, the rise of Fang Hong and Qunxing Capital has led to a surge in the number of these people fleeing with money.

However, the continued reduction in foreign exchange reserves is obviously what the external international short-selling forces most want to see, because the continuous reduction in foreign exchange reserves means that the country's ability to intervene in the foreign exchange market will continue to weaken.

As for the current situation, in Fang Hong's eyes, it is inevitable that the offshore RMB will reverse and strengthen. He is not worried at all about how big a wave the international short-sellers' counterattack at the end of the year will cause.

No matter how much interest rates are raised next year, the US dollar index will reverse and weaken, because the new leader in America will inevitably make various "withdrawal" operations. He wants to set off a wave of anti-globalization and put America first, which will in turn impact the US dollar index, so it will begin to weaken. As the US dollar index continues to fall, the offshore RMB exchange rate will strengthen even if it maintains its current position.

What Fang Hong is really concerned about now is to stop the massive outflow of wealth from the mainland, which is a huge amount of money starting from trillions. Especially those runners and colonizers who have left their debts in the mainland and transferred their assets overseas, including insiders, those who eat in the back and take advantage of the chaos to speculate.

Finally, Fang Hong glanced at Tian Jiayi and said, "For those domestic investors who have transferred their capital overseas on a large scale, we took advantage of this group of investors in the foreign exchange market at the beginning of the year. Now, there probably won't be many people willing to take risks. It's impossible for them to forget what happened at the beginning of the year so quickly..."

After thinking for a moment, Fang Hong immediately ordered: "Drive these domestic investors who are trying to flee to the encrypted digital currency market and let them go through this channel."

Tian Jiayi was puzzled when he heard what he said, "That's impossible, right? The world's largest encrypted digital currency trading platform Mt.Gox is now operated by Qunxing. Although the equity structure of the platform has been given to Merrill Lynch, do they have the courage to go this way? Aren't they afraid that we will ambush them?"

Fang Hong smiled and said, "There is no need to worry too much about this. We can just launch an unprecedented super bull market for cryptocurrencies represented by Bitcoin. There is currently a legal vacuum in this area, and loopholes can be exploited. The country has either blocked or severely cracked down on large-scale capital outflows at other levels. Only cryptocurrencies are new and can accommodate large capital flows."

"Next year, Matrix Quantum will follow up and make efforts on the technical level. Chen Yu over there will open source the second-generation AI model. Together with that, we can tell a good story and hype up the concepts of blockchain, artificial intelligence, virtual world, virtual digital property rights, virtual currency trading system, etc. This will boost the bull market of Bitcoin and give it infinite space for phenomena."

With Fang Hong's current capabilities, or the control over the various resources currently held by Qunxing Capital, it is easy to artificially launch a super market for digital currencies represented by Bitcoin.

Choosing this time point to push the encrypted digital currency market out of the bull market is also the right time and place. This year is called the "first year of blockchain" because this year the value of blockchain is truly recognized by the world. Many countries such as Britain, Sweden, Denmark, Canada, and India have announced that they are stepping up the development of national digital currencies based on blockchain technology.

What Fang Hong needs to do is to add fuel to the fire and make the craze even hotter. It will also be much easier to push the encrypted digital currency into a bull market in 2017 because more people are playing and more big names are entering the market.

Even in the previous life, Bitcoin was on the rise throughout 2017, with the price soaring to $2 per coin. Now it is not difficult for Fang Hong to add fuel to the fire and push the price up to $3.5.

After a moment, Tian Jiayi continued, "The current market price of Bitcoin is around $733 per coin. Since you are planning to launch a bull market here, how high do you plan to push the price to?"

Compared with its historical high, the current market price of Bitcoin has been halved again and again.

Fang Hong thought for a moment and then gave his target price: "Push it up to the range of $3 to $3.5 within the next year. This round of bull market must last for at least a full year, which means it will peak in December next year."

When the assistant heard him say this number, her eyes widened and she looked at him in astonishment: "Oh my God, the price is raised to 3.5 US dollars?"

The current price of Bitcoin is $733 per coin. If it rises to $3.5 within a year, it will surge 46 times. Its market value will be pushed to $7350 billion, which is an astronomical figure of more than 5 trillion yuan when converted into RMB.

Fang Hong ignored the surprised assistant and continued, "In addition to Bitcoin, raise the price of Ethereum to $3000. These are the two main types of encrypted digital currencies. You can try other types, but you don't have to work hard to operate them."

Ethereum was launched in 2015, but at that time the cryptocurrency market was at the bottom of a bear market and almost no one knew about Ethereum. Even in January of this year, the total market value of Ethereum, a little-known blockchain variety, was only US$7000 million.

But then, in just two months, its market value soared to US$11.5 billion, a 16-fold increase, because the concept of blockchain became popular.

On April 4 this year, the Ethereum-based project application "The-DAO" began crowdfunding. In just 30 days, it raised 28 million Ether, with a total value of more than 1150 million US dollars, becoming the largest crowdfunding project in the world's history at that time.

Ethereum has also risen rapidly and become very popular, becoming the second most popular cryptocurrency after Bitcoin.

However, the price of Ethereum has fallen below $7, which is half of the historical high in the first half of the year. The reason is that there is a problem with The-DAO. On June 6 this year, multiple loopholes in The-DAO smart contract were hacked. 18 million ethers worth more than $6000 million were invested in a DAO sub-organization, which has the same structure as The-DAO.

At that time, the price of Ethereum fell from more than $20 to below $13. Many people tried to withdraw from The-DAO to prevent the Ethereum from being stolen, but they could not get the required number of votes in a short period of time because the designers never thought that the amount would be so large. All Ethereum was stored in a single address.

In fact, there have been many disturbances in the cryptocurrency market this year, with the main theme of "life never stops, and trouble never stops." Going back a month, on May 5 this year, the HK cryptocurrency exchange Gatecoin was attacked and more than $14 million worth of Ethereum was stolen.

More than two months later, on August 8, the digital currency exchange Bitfinex was also attacked by hackers. 4 bitcoins were stolen, which were worth more than 119756 million US dollars at the time. Many cryptocurrency players could not even afford instant noodles because of this.

On the contrary, the Mt.Gox trading platform also suffered from hacker attacks and Bitcoin thefts in the past few years, which led to its bankruptcy and was taken over by Qunxing Capital. However, it was after Qunxing took over that the trading platform has never experienced similar hacker attacks again.

In addition, this platform is backed by top financial giants from the East and the West, such as Merrill Lynch and Qunxing. Its user experience is ahead of its peers, it has a rich variety of tools, and there are professional APP applications. The key is that there are no obstacles to monetization. Over the years, it has built up its reputation and credit, making the Mt.Gox trading platform the world's largest encrypted digital currency trading platform.

More than 70% of global cryptocurrency players trade on the Mt.Gox trading platform. For those in China who want to transfer wealth through encrypted digital currency channels, they cannot avoid it even if they have some concerns.

……

(End of this chapter)