In recent years, Bitcoin has become one of the hottest topics in the investment community. Particularly at the peak of the bull market, Bitcoin's price once broke through the psychological expectation of $100,000, attracting countless investors, especially the 200 million new middle class in China. They entered this market with the desire for wealth growth, only to be 'harvested' repeatedly in the frenzy. Why do the originally shrewd new middle class become 'leeks' in this wealth game of Bitcoin?
Why are the new middle class so keen on Bitcoin?
For the new middle class, the core goal is to pursue the preservation and appreciation of wealth. Bitcoin, as a 'decentralized' and 'anti-inflation' digital asset, naturally has a strong appeal to them.
First, the scarcity of Bitcoin gives it investment properties similar to gold. The new middle class often hopes to diversify investment risks, and Bitcoin, with its high returns and risk resistance, becomes a new favorite in their investment portfolios.
Secondly, the 'wealth creation myth' propagated by social media and KOLs has further stimulated their desire to invest. You may have heard stories like this: a certain investor bought several hundred bitcoins early on and has now become a billionaire. Such stories are an enticing dream for the new middle class eager to get rich quickly.
Moreover, the new middle class has a certain amount of capital reserves, and they are more willing to take on high risks in pursuit of high returns. The high volatility of Bitcoin aligns perfectly with their bold attempts at wealth appreciation.
From 'wealth creation myth' to 'being harvested like leeks'
However, ideals are lofty, while reality is stark. The massive influx of the new middle class has made them the main 'prey' in the market.
First, the Bitcoin market is essentially a highly speculative market. Its price fluctuations are not entirely determined by supply and demand but are manipulated by large capital. Whenever Bitcoin prices approach a peak, it is often accompanied by institutional investors' 'pulling up' actions, at which point media and social platforms start to promote it extensively, making retail investors feel that 'it can go higher', thus attracting them to buy at high prices.
Secondly, the investment strategies of the new middle class often lack rational planning. Many people do not have a deep understanding of Bitcoin's operating mechanism and merely follow the trend in investing. Especially during periods of high market sentiment, they are easily driven by the anxiety of 'missing out on a good opportunity', blindly buying high-priced Bitcoin.
Third, the Bitcoin market is a global, 24/7 trading market, which makes it difficult for the new middle class to control the pace. They may panic sell due to a sudden drop or chase high prices after a night of surge, ultimately falling into a vicious cycle of 'buy low, sell high'.
The underlying logic of the harvesting of the new middle class.
In fact, behind the harvesting of the new middle class by Bitcoin lies a deeper logic.
First, this is a game of information asymmetry. While the new middle class has a certain economic foundation, their understanding of technology and market trends in the cryptocurrency market is far less than that of professional investors. In the Bitcoin market, institutional investors and early holders often possess a significant information advantage, allowing them to easily predict retail investors' psychology and profit from market fluctuations.
Second, the lack of transparency in market rules exacerbates this inequality. The Bitcoin market lacks the regulatory mechanisms of traditional financial markets, allowing large players to easily manipulate price fluctuations. This turns the new middle class into victims outside the rules.
Third, the investment mentality of the new middle class also determines that it is difficult for them to exit completely. Compared to the older generation's steady investments, the new middle class tends to pursue quick returns. When Bitcoin prices soar, they are more easily driven by emotions, ignoring risks.
How to avoid becoming 'leeks'?
So, for the new middle class eager to achieve wealth appreciation through Bitcoin, is there a way to avoid being harvested?
First, do thorough research before investing. The value of Bitcoin is not just about price fluctuations; its underlying technology and market logic need to be understood in depth. Only by understanding its essence can one maintain rationality when investing.
Second, control the investment ratio. The new middle class must understand that Bitcoin is a high-risk asset and cannot bet too much capital on it. It is generally recommended to invest 5%-10% of total assets in Bitcoin to lower overall risk.
Third, avoid emotional trading. During periods of market volatility, do not blindly follow the crowd or panic sell. Setting stop-loss and take-profit points in advance can make investment behavior more disciplined.
Fourth, diversify investments. Don’t put all your eggs in one basket. Besides Bitcoin, consider stocks, funds, or even physical assets to spread the risk.
Conclusion: Investment is never gambling.
Bitcoin is indeed a high-potential asset, but it is not a shortcut to wealth freedom. The various experiences of 200 million new middle-class individuals in the Bitcoin market remind us that investment always requires rationality and knowledge.