I'll talk about Bitcoin first, then you can determine what to invest in.
Positions are basically divided into two camps:
1. Insiders: Bitcoin is a global currency, with great value.
2. Outsiders: Bitcoin is a Ponzi scheme, and it will collapse sooner or later.
As a person who has been in the cryptocurrency circle for 9 years, we must deeply discuss the value and bubble of Bitcoin.
Before explaining Bitcoin, let's first popularize a financial common sense: bubble.
What is a bubble? It is generally believed that when market prices exceed actual values, the difference is called a bubble.
Bubbles are not scary; what is scary is the lack of a mechanism to eliminate bubbles. Once the bubble gets too big, it is easy to collapse.
In fact, bubbles have always existed in the real industry and the financial industry. The real industry bubbles are passed on to consumers, while financial industry bubbles are offloaded onto retail investors, eliminating the bubble through pump and dump.
Okay, knowing this premise, let's talk about the value of Bitcoin.
1. The birth of Bitcoin.
It can be said that the early promoters of Bitcoin were attracted by the concept of world currency.
Because currently, the fiat currency systems of various countries are facing various issues, central banks issue currency at will, diluting the value of fiat currency and indirectly squeezing the common people.
Okay, what to do? Bitcoin has emerged. Due to its fixed total amount, it cannot be increased, so there’s no need to worry about excessive issuance that deprives users of their wealth.
2. Can Bitcoin replace fiat currency and become a world currency? Is it reliable?
You should know the three elements of currency circulation: value stability (large fluctuations), portability (quite convenient), and strong liquidity (high transfer fees, weak liquidity, fewer accepting groups).
It is clear that Bitcoin does not currently meet the attributes of currency. Why? Because Bitcoin has been hijacked by programmers, leading to high transfer fees. If you want to understand this history, look into the block size debate.
Moreover, as fiat currency represents the will of the state, can it allow Bitcoin to circulate? That is unrealistic.
Some may say, Bitcoin is decentralized, how can it be banned? Naive...
Shut down the mining machines, arrest the programmers who maintain the Bitcoin network... there are many methods.
Replace fiat currency? Dream on.
3. Is Bitcoin digital gold?
It has already deviated from its original intention.
Bitcoin was not initially created as a store of value, but as a circulating currency.
Is the narrative about digital gold a capital discourse, or something else? Is this pie reliable? Time will tell.
4. What is the price of Bitcoin?
Currently, aside from speculation, it has no value.
So-called world currency or digital gold, at present, are both just pie in the sky.
5. Why is there hype online about Bitcoin reaching one hundred million?
It's simple, let newcomers take over.
6. Support for Bitcoin's value.
Speculation, community.
It is undeniable that Bitcoin had a good original intention, but the reality is that it has gone down a wrong path, has been hijacked by certain vested interests, and is no longer the pure Bitcoin it once was.
As for whether you should buy it, it's up to you...
