If I buy 10,000 yuan now and enter the cryptocurrency circle, will I become a millionaire in ten years?
First of all, this is a wrong expectation: the cryptocurrency circle is not an ATM. In any financial market, it is very difficult to get a hundredfold return.
I am sure someone will scold me for saying this, but this is the fact. I admit that there are many miracles in the cryptocurrency circle, and such miracles can happen at any time, but if you invest in the cryptocurrency circle to encounter such miracles, I suggest you forget it. Of course, the reason why you have such an expectation is because of the wrong logic of the cryptocurrency circle:
If you bought Bitcoin ten years ago, you will have a thousand times return now, and you will be a millionaire if you enter with 10,000 yuan.
This logic is very wrong:
1. The country prohibits various extreme situations such as currency speculation, mining, and exchanges running away. In many cases, when people in the circle generally believe that this industry is going to end, your 10,000 yuan has become 100,000 yuan. Will you let this 100,000 yuan take risks?
Definitely not, you will definitely withdraw and run away;
2. There are too many junk coins in the currency circle whose short-term market exceeds BTC. When your BTC rises by 5%, and the junk coins double every day, can you bear it?
Definitely not, you will mostly buy junk coins;
3. There are too many cases of getting rich through contracts in the currency circle in the short term. BTC rises by 1%, and people open 50x contracts, it can rise by 50%. Can you bear it?
Most people won’t, and you will definitely return to zero if you open a contract;
4. There are too many hot spots in the currency circle. When the NFT money-making effect is most obvious, everyone buys and sells and hypes NFTs every day. Can you bear it?
Most people won’t, and there are too many ways for you to return to zero when you buy and sell NFTs;
We often think that if I invest 10,000 yuan, I will be a multi-millionaire ten years later.
But this is always an ideal: when you see others getting rich, when you want to get married and buy a house, when your family is seriously ill, etc., many situations make you unable to hold on, and too many temptations make you return to zero.
The biggest barrier to this simple strategy is time, enjoying the present life and maintaining the ability to make money, and treating the money invested in the cryptocurrency as lost.
The logic of value investing is very difficult.
