As a newcomer to the cryptocurrency world who only entered the market in October 2022, I have seen a lot in the past two years. Let me share with you what I have seen and heard and my personal feelings.
In this circle, you can always hear stories that make you jealous: 100-fold and 1,000-fold gains are commonplace. A mere 2-3-fold profit is not worth mentioning. There are also those legendary early Bitcoin holders who are said to have become rich overnight after finding their lost wallets. In short, it seems that as long as you enter this circle, 10-fold and 1,000-fold gains are nothing, and 1,000-fold and 10,000-fold gains are not impossible.
But is this really the case? I’m curious about your personal experiences, so feel free to share your stories.
Today, I want to look at the cryptocurrency world from a different perspective.
Let's take the automobile industry as an analogy. The automobile industry as a whole obviously provides value to society - solving people's travel problems. And it makes profits by selling cars outside the circle.
So, if we look at the cryptocurrency world as a whole, what products or services does it provide to society as a whole? Is it just selling various coins to society?
If the cryptocurrency circle as a whole cannot sell products or services to the outside world to make a profit, but instead has to purchase expensive graphics cards from the outside world to mine, and also has to pay high electricity bills and other costs, then isn’t this circle a zero-sum or even negative-sum game?
What is more noteworthy is that in this circle, there are some roles that always seem to make a profit:
1. The exchange can extract huge commissions every year.
2. The project owner almost has the power to print money, which is comparable to that of a small country.
3. Hackers are elusive and can make tens of billions of dollars every year.
4. Large investment companies can generally maintain profitability.
5. Various market makers can basically make a profit without loss.
6. There are also those KOLs who, even if their investments may not be profitable, can make a lot of money just by relying on rebates and project kickbacks.
Seeing this, you may ask: Is everyone in this circle making money?
So the question is, where does all this money come from? Is it printed out of thin air?
To be honest, I think the truth may not be so beautiful. It is very likely that most ordinary participants will not only fail to make money, but will lose money.
