The inevitability of market collapse

If a market does not have young people joining, collapse is almost inevitable. The philatelic market is a typical example. In the 1980s, philately was popular due to the expectation of stamp appreciation, but with the development of communication technology and the over-issuance of stamps, stamps quickly depreciated. There were 17 million stamp collectors in 1997, but now it is estimated that there are only a few hundred thousand left. Not only did the stamps in the hands of many stamp collectors not appreciate, but they also had to be sold at a discount, almost becoming waste paper.

Another market on the verge of collapse is Moutai. Moutai was initially popular due to public spending, and after the state rectification, it turned to private consumption. However, young people no longer drink Moutai. Although the ex-factory price of Moutai is 1,499 yuan, the actual purchase price is as high as 2,000-3,000 yuan, and this high premium has become difficult to sustain. Recently, there have even been reports that Moutai official agencies cannot distinguish between genuine and fake wines.

These cases reveal the common laws of the market: the market is hot at the beginning, early players make profits, and a large number of newcomers rush in to push up prices; then the supply and demand are unbalanced, over-issuance and counterfeiting occur, the bubble continues to rise, young people refuse to take over, and the market eventually collapses.

By understanding the changes in market cycles, we can more accurately understand the current era. #MiCA #Mt.Gox将启动偿还计划