The gains in the market were vomited out overnight. BTC fell below the 30-day moving average to around 59K, and the market fluctuated and oscillated. All the positions that needed to be cleared out were swing positions.

Most of the time the market remains in this state. Before a big rise or fall, it fluctuates within a range. Only a few times are there excellent opportunities to increase positions (decline), and most of the time it is neither going up nor down.

Everyone needs to get used to this kind of market, and at this time, you need to consider whether you can accept losses. If you cannot accept losses and blindly predict the market, you will always be led by the nose by fluctuations.

Many people really don’t realize how lucky they are to be in crypto. I don’t want to talk about the market today, let’s talk about another issue, capital and work.

As a manifestation of capitalism, the profit pursued by enterprises can be expressed by a formula, namely, profit = revenue - cost.

Take the Internet giants as an example.

When it is difficult to increase revenue, the only way to ensure profits is to work on costs, which is commonly known as "reducing costs to increase profits", and a major part of reducing costs is layoffs. Friends who follow Chinese stocks should have found that the financial reports released by large companies during this period have good profits, but revenue is declining. For example, Pinduoduo's second quarter financial report showed revenue of 97 billion, lower than the expected 99.9 billion, but profit was 34.4 billion, higher than the expected 30.1 billion.

This situation means that a greater internal circulation has begun. The demographic dividend (market expansion) of the Internet has disappeared a long time ago. If you want to gain more profits, you have to "streamline the workforce" or seek technological monopoly.

When this big flow weighs on everyone, it becomes even more terrifying. The desperate competition is not to pursue upward space, but to try not to fall down. Especially when the profit method shifts from model innovation and demographic dividend to technological innovation and technology monopoly, capital often needs workers with higher knowledge levels rather than ordinary laborers.

In other words, after the Industrial Revolution and the birth of capitalism, it was the workers themselves who were exploited. But after the information revolution and technological upgrades, many people no longer even have the qualifications to be exploited. What a large number of people have gained through internal competition is just the "qualification to be exploited."

It is realistic and cruel, and most people are unaware of it. From this perspective, many people are really not suitable for investment.

Why do I say that? The underlying tone of consumer capitalism is to promote profit growth through consumption, and this goal is achieved through widespread advertising and marketing, public opinion guidance, and labor alienation.

Showing off wealth has become "income and expenses", and "deposits and balances" have been deliberately concealed. Regardless of income, how can people who live paycheck to paycheck and have two loans have money to invest?

Even if you can scrape together a little money, it is still difficult to get rich: if someone invests 100 million yuan and puts it in the bank with a 2% interest rate, they will have 2 million yuan, but what is the point of you taking a few thousand yuan and earning 2% interest? If you don't put it in the bank, it will be even worse. Take A shares?

People without capital need to spend time accumulating capital, and at the same time, they need to find the target with the highest and most certain return on investment. The former needs to see through consumerism and be more restrained than the rich to save money; the latter requires higher cognition and better luck to find such an opportunity.

This is difficult.

Take Tencent for example. Zhang Lei invested in Tencent in 2005. At that time, Tencent was a small and medium-sized enterprise with a revenue of more than 1 billion yuan and a profit of 200 million yuan, and its valuation was over 10 billion yuan. If you get 10 million yuan, you probably won't dare to go all in, but Zhang Lei dared. On the one hand, Zhang Lei had a deep understanding of Tencent, and on the other hand, this money was "sponsored" by his teacher and not his own, while our money was the savings of most of our lives.

If you didn't buy it then, would you still have a chance now? Tencent has already passed the dividend of population growth. At this time, you think Tencent is great, and everyone thinks it is great. But its explosive growth in population dividend has passed, so how can you get a 300-fold return if you invest in it? An annualized rate of 2-5% is already very high.

What's more, the Internet has become a mature industry, and the traditional industries and tracks have basically been finalized. Even if you dare to invest, there is no such opportunity for you.

Of course, AI and biomedicine are also hot spots, and ordinary people have no chance. First, they cannot participate in the financing of unicorns, and they cannot start a business. The valuation of good companies is sky-high before IPO, and the secondary market will not give you much room.

Only cryptocurrencies, only BTC and ETH, are opportunities for ordinary people like us. Looking at the global capital market, can we find a target that can continue to grow like BTC and guarantee an annualized return of more than 50%? No.

Aren’t you and I lucky enough to enter the crypto market at this time? Unfortunately, many people treat it as a casino and cannot explain or understand it.

I feel that Crypto is full of dreams of getting rich overnight, and I am often brainwashed by stories of making tens of millions or hundreds of millions overnight. I never thought that the entire crypto market value is less than 1 trillion US dollars, BTC accounts for half, and ETH accounts for a small half ------ everyone can go and look at the addresses on the chain, are there really so many "teachers" with billions of assets?

The opportunities that the crypto industry can provide to all players are the same as those of the Internet back then: a high-growth environment, a relatively fair starting point for competition, and an opportunity to gain higher recognition than others.

I think this is the most important cognition. Even if you want to be a gambler and speculate, you must have the ability to find opportunities. The so-called "opportunities" are places that most people have never noticed, rather than trading by looking at the K-line.

If you leave Crypto, you may not even be qualified to be exploited. But if you only regard Crypto as a casino, then it is better not to come. At least, you can still live a normal life.

Do you need to understand the business model, build a thinking framework, read a lot of books, have the latest industry knowledge, find the "value" that others cannot see, find the cognitive support for long-term holding of BTC, and discover the "opportunities" that others cannot find; or do you just listen to the teacher's instructions, listen to the "experts'" predictions, look at technical analysis, and dream of making money immediately by investing today?

You choose your own path, and how you choose it depends on your own cognition. This is just another opportunity to get rewards for your efforts, not an opportunity to make money.