Yesterday, BTC tried to test below 92,000 points for the second time, but the altcoins almost stopped following.
Unless there is an instantaneous black swan that breaks through the buying point, it is difficult for the altcoin to have a deeper correction.
After all, a lot of copycat products are already priced as cheap as in a bear market, how can they go back to zero?
Just like the massages I had every now and then in the community before——
“No one has unlimited chips to throw at, and things will turn into the opposite when they reach the extreme.
In a bull market, prices will keep falling until they stop falling.”
There is a horrible truth: the US is still in a high interest rate range and the balance sheet reduction has not stopped.
In other words, BTC’s new high was almost entirely due to the boost from ETFs and the positive news of the election of Trump’s crypto-friendly government.
With Trump officially taking office next year, the introduction of potential crypto-friendly policies, and the continued easing of US dollar liquidity, the crypto carnival will officially begin.
In 2024, the fundamental reason for the roller coaster-like rise and fall of altcoins is the lack of market liquidity. Only BTC has continuous support from institutional funds.
Compared with the current correction and shock of dozens of points, what is more uncomfortable is the potential of missing out.
When faced with a great opportunity, missing out is 10 times more painful than being trapped.
Even if you are trapped, you can continue to add positions. Maybe the market will pull back in three or two days. If the cryptocurrency takes off, you will have to wait for the next round before you get on board.
The rapid implementation of encryption and its deep involvement in the financial system will unleash a terrifying wealth-creating effect that is beyond the imagination of ordinary people.
To give a simple example, take the stock market. More than 200 countries and regions in the world are basically divided into independent markets. Once stocks are put on the chain, thanks to the low threshold of encryption and the lack of permission, even African brothers wearing straw sandals can chase lions while trading stocks on the chain. The liquidity of the world converges into a vast ocean, and it is easy to instantly increase a certain target by 10X or even 100X.
A great new era has just dawned, and the fluctuations of dozens of points before our eyes are like floating clouds that cannot block the clear sky behind.
The most direct effect of the arrival of the encrypted digital economy is the large-scale transfer of wealth.
A large number of assets that were regarded as stored value in the traditional era will be hollowed out, and many new crypto assets will gain the favor of the new generation of liquidity. Quietly, a large number of items that were once regarded as treasures will become garbage.
For example, a rare stamp that you bought for 5 million may be just a worthless picture in the eyes of the new generation, but they can't let go of a small NFT picture and spend millions on it.
Under the credit currency system, in addition to the government being able to dilute your wealth through deficit debt issuance, the bloodier truth is that competition from the same type, that is, the economic activities of other market players have a larger scope and can better meet market needs. Their interactions with banks will also generate currency, diluting the old antiques' share of the earth's wealth.
If you are brainless and lack understanding of the real economic laws of this world, it will be difficult to keep 1 billion yuan even if you are given it. Even if you don't make mistakes, your wealth will be continuously diluted.
True knowledge can not only gain wealth but also keep wealth.
The era of credit currency is very unfriendly to nouveau riche, and they will soon be robbed of everything. What truly preserves value is insight into the underlying laws governing the operation of the world.
This is also the fundamental reason why even a giant asset management company like BlackRock has to admit its mistakes and embrace Bitcoin.
The strength of a noble family lies in its intellectual inheritance, not in the numbers in its account.
If you don't understand the general trend of the world and the rules of the game of human economic activities, no matter how much money you have in your hand, you are just a fat pig waiting to be slaughtered.
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