The main reason for not being able to seize the opportunity of class transition is the information gap, but the information gap itself depends on your class. This leads to a vicious circle. The lower the level of people, the lower the quality of information they are exposed to, which further strengthens their own class.
The reason why rich people are rich is largely because they are surrounded by rich people. Everyone is doing things that make money, and everyone in the circle has a circle of making money. As long as you look at what your friends are doing every day and follow them, you will not be poor.
You are surrounded by billionaires in the cryptocurrency industry. Would you not buy Bitcoin? You will definitely buy a few if you stay here. Will you become rich? And the people around you are not good at using computers, can’t read a few lines of code, and know nothing about finance, economics, and history. They just clock in at work and watch TV shows after work. What kind of high-quality information do you expect from these people? The quality of information in the village is relatively low. There are not many real practitioners. Those who dare to speak are basically banned. How to judge who is of high quality? Just see if his information can guide you to make money. That’s enough.
Choice is definitely more important than hard work. Doing the right thing is far more important than doing things right. Just like the reform and opening up, everyone was very poor at that time and no one was much richer than anyone else. But whoever knew the news first, whoever knew the direction of the country's development first, would be more likely to succeed than ordinary people? Does this have anything to do with IQ? It has something to do, but not much. Why do so many high-ranking children go into business without hesitation? Because they are 99% sure that this thing is worth doing, and they have the first-mover advantage that most people don't have; for example, the well-known belt ge, why can he do 2wE, why dare to play with leverage so crazily, do you really think he is a nobody?
Once you know a certain opportunity, will you be more confident to bet more and get the biggest return in the end? The disadvantage of the bottom layer is that,
1. All you receive is N-hand information, or even no information at all, which is much worse in terms of timeliness. It is like the same investment product, people who are foresighted naturally enjoy lower costs and purchase prices, while those who come later can only bear high costs to carry the sedan chair for the predecessors.
2. Lack of certainty about opportunities. Differences in information quality lead to differences in cognition, which further lead to differences in understanding of things themselves. This means that you cannot bet heavily on things you are uncertain about, or even add leverage.
For example, if there is a game with a 100% chance of giving you a 2x return, wouldn’t you bet your entire fortune and all the money you can get on it without even thinking about it? But if the chance of this game drops to 50%, would you still be so confident?
In real games, this objective probability is impossible for anyone to tell you, which means it all depends on our judgment, that is, cognition. For the same thing, some people think there is an 80% chance of winning, while others think there is only a 20% chance of winning. So they must have completely different operations. This is why I dare to go all-in on BTC, but you don’t. You can’t just listen to a few words from me and invest all your money in it, because we have different understandings of things and winning rates, which also leads to the fact that you can’t get a higher percentage return than me (because I invest a higher proportion)
Because you will only use a part of your money to earn a relatively low return, such as 50% or 100%, which means that your return is 50% principal * 50% rate of return, and you can only get a return of 25% of your total assets. What I analyzed is still the most ideal situation. The real situation is that you may lose all your principal.
Let's do my calculation. I will invest most of my money in the cryptocurrency circle and I will always get 10 times, 100 times. My return is 80% of the principal * 1000% of the rate of return, and I can eventually get a return of 8 times the total assets. 8/0.25=32, which means that for the same investment product, due to the differences in our information and cognition, the final outcome will differ by 32 times. This is just an ideal situation. The reality will only be more magical than this data.
The information gap leads to the cognitive gap. The truth you have struggled for your whole life may be common sense engraved in the bones of others since birth, just like a person will die if he jumps from the 10th floor. In my opinion, class barriers are time barriers in the process of cognitive awakening. Time is the deepest moat.
Finally, back to the question itself, I would like to use a classic line from The Godfather as the ultimate answer to this question: "People who can see the essence of things in half a second and people who cannot see the essence of things in their entire life are destined to have completely different destinies."
