Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.

Author: Zhou Le.

On December 2 local time, Japan's cryptocurrency exchange DMM Bitcoin announced that it would cease operations and expected to transfer all customer assets to Japan's digital financial group SBI subsidiary SBI VC Trade by March next year, while taking measures to shut down the business. Prior to this, the exchange suffered a large-scale hacking incident, losing over 4,500 bitcoins.

It is worth noting that thanks to the policies promised by the newly elected US President Trump, which are bullish for the cryptocurrency industry, the cryptocurrency market led by bitcoin has continued to rise sharply, with bitcoin prices reaching new highs. According to data from cryptocurrency analysis firm CoinGecko, the total market value of the crypto market has surged by approximately 1.2 trillion dollars.

Meanwhile, US exchange-traded funds (ETFs) directly investing in bitcoin and ethereum have also been favored by market funds. According to compiled media data, in the just concluded month of November, the net inflow of funds for bitcoin and ethereum ETFs set historical records.

Suddenly announced: shutdown.

On December 2, Reuters reported that Japan's cryptocurrency exchange DMM Bitcoin announced on Monday that it would cease operations, expecting to transfer all customer assets to Japan's digital financial group SBI subsidiary SBI VC Trade by March next year, and taking measures to shut down the business.

In May of this year, DMM Bitcoin revealed that it had lost over 4,500 bitcoins, which were worth about 0.308 billion dollars (approximately 2.2 billion yuan), referring to it as an 'unauthorized leakage.'

Although the company did not disclose much information about the losses, the large cryptocurrency analysis firm Chainalysis confirmed that this is one of the largest hacking attacks on a japanese digital asset platform to date. This also marks the second largest incident in the region since the 2018 CoinCheck loss of 0.53 billion dollars in assets.

At that time, the company stated that all user deposits "would be fully guaranteed" as withdrawals, new accounts, and trades had been suspended.

DMM Bitcoin at that time promised customers that it would "procure an equivalent amount of BTC" to ensure all users were compensated and "with the support of our group companies" acquire funds.

After the incident, although DMM Bitcoin attempted to restart operations, it was still unable to provide services to existing customers. Meanwhile, regulators discovered vulnerabilities in its security measures.

DMM Bitcoin was launched in January 2018 and is affiliated with the japanese e-commerce group DMM Group. As of March this year, DMM Bitcoin had 0.45 million accounts, with total customer assets reaching 96.2 billion yen. When DMM Bitcoin transferred customer accounts and assets to SBI VC Trade, SBI VC Trade was expected to pay between 3 billion to 5 billion yen.

It is noteworthy that this year, cryptocurrency exchanges around the world have repeatedly faced hacking attacks. The indian WazirX exchange was hacked in July, losing 0.235 billion dollars, the singaporean BingX exchange was hacked in September, losing 52 million dollars, and the turkish BtcTurk hot wallet was attacked, losing 55 million dollars in June.

Cryptocurrency surge

Thanks to the usa's elected president Trump promising to implement a series of bullish policies for the cryptocurrency industry, the cryptocurrency market led by bitcoin has continued to surge, with bitcoin prices reaching new highs.

Currently, bitcoin prices are facing resistance at the $0.1 million mark, with a large number of profit-taking trades occurring in the market.

Meanwhile, since Trump's victory, ethereum prices have also risen significantly, performing even better than bitcoin, although it has yet to reach a new high. Currently, ethereum trades around $3,750 per coin.

According to cryptocurrency analysis firm CoinGecko, since Trump's election as President of the USA, the total market capitalization of the crypto market has surged by approximately $1.2 trillion (about 8.7 trillion yuan).

At the same time, US exchange-traded funds (ETFs) that directly invest in bitcoin and ethereum are also attracting significant market funds.

According to media collated data, in the just concluded November, both bitcoin and ethereum ETFs saw record monthly net inflows, reaching $6.5 billion and $1.1 billion respectively. Last Friday, the subscription volume for the ethereum ETF even set a historical daily record.

Ethereum is the second largest token after bitcoin, and the growing interest in ethereum indicates that speculation interest in cryptocurrencies is expanding following Trump's victory in the US election on November 5. From certain indicators, the current investment frenzy in digital currency assets may not have yet reached the feverish level seen during the COVID-19 pandemic.

On November 29, driven by BlackRock iShares Ethereum Trust and Fidelity Investments Ethereum Fund, nine ethereum ETFs achieved a net inflow of $0.333 billion.

Caroline Bowler, CEO of digital asset exchange BTC markets Pty, stated: "We are seeing a trend in the crypto market where bitcoin initially drives the price movement, but the rising tide lifts all boats (cryptocurrencies)."

She believes that, based on the inflow of investor funds into digital asset exchanges, crypto trading activities have not yet peaked.

Additionally, the price of the world's fourth-largest crypto, xrp, has recently seen a significant increase. This is due to investors' expectations that, with Trump in office, the Securities and Exchange Commission (SEC) will withdraw its crackdown on xrp. Some investment firms are seeking to launch an xrp etf.

Unlike the Biden administration's crackdown on digital assets, Trump vows to establish a crypto-friendly regulatory body. He also supports the creation of a strategic bitcoin reserve in the USA and promises to turn the USA into the 'crypto capital'.

Coinbase's chief policy officer, Hilszed, stated that after Trump takes office, crypto legislation will progress 'quite rapidly' in the US Congress.

At the time he made this statement, two key pieces of crypto-related legislation were moving through Congress. One is the '21st Century Financial Innovation and Technology Act' initiated by the Republicans, aimed at establishing a legal framework for digital assets; this bill passed the House earlier this year. The other is the 'Payment Stablecoin Transparency Act', which aims to create a regulatory regime to license stablecoin issuers—stablecoins are tokens pegged to the value of fiat currencies like the US dollar. The stablecoin bill has yet to be voted on in the House.

It is worth mentioning that Trump was once a skeptic of cryptos, but he changed his position as the industry heavily supported his campaign.

Editor/Rocky