In the world of cryptocurrencies, the price of Bitcoin rose from $50,000 to $90,000 over more than three years. This increase seems enticing, but it hides many risks and uncertainties. Bitcoin, as a virtual digital currency, has unique value support. On one hand, it is not directly constrained by any country's regulatory policies, which allows it to potentially serve as a relatively independent means of value storage under certain specific economic environments or geopolitical situations; on the other hand, Bitcoin's limited supply gives it a certain level of scarcity, which also theoretically supports its value to some extent. However, these value support factors cannot completely eliminate the drastic fluctuations in its price.
For ordinary people, this is not a wealth territory that can be easily ventured into. If one invests 200,000, a long wait may be needed to see a doubling, while a price halving could strike within just a year or two. Even if one is fortunate enough to double to 400,000, in today's economic environment, its purchasing power appears quite limited; but if faced with a downturn, the resulting pain and loss can be deeply etched in memory. Therefore, ordinary people entering the market recklessly are likely to become harvested retail investors. Ordinary people should be more cautious and rational in asset allocation. First, ensure that they have sufficient emergency funds to cope with unexpected life changes or economic difficulties, generally recommended to reserve 3-6 months of living expenses as emergency savings. Secondly, they can focus on stable investments, such as bank fixed deposits and government bonds, which, although yielding relatively low returns, also carry lower risks and can provide a stable foundation for asset preservation. Furthermore, for those with a certain risk tolerance and relevant knowledge, they can appropriately allocate some quality blue-chip stocks or broad-based index funds to share in the economic growth results through long-term investments, but the investment proportion should not be too high, generally suggested to be controlled within 20% - 30% of total assets.
The rich are entirely different; their enthusiasm for Bitcoin is essentially driven by the need for asset self-protection and diversified allocation. For a billionaire, allocating thirty million to Bitcoin is like a drop in the bucket, having no significant impact on their overall wealth status, but it can serve as an asset guarantee in extreme situations, preventing wealth from instantly plummeting to zero. Before engaging in Bitcoin, they have long laid out in traditional asset fields such as real estate, stocks, and gold; Bitcoin is merely a new component in their diversified asset portfolio.
However, in the wave of virtual currencies, the ones really making a fortune are the virtual currency manipulators. They concoct various cryptocurrencies such as Sun Yuchen's TRON, crazily raking in money in the market through a Ponzi scheme model. Retail investors often blame their investment failures on bad luck, rather than questioning the issues with the coins themselves. Thus, when manipulators launch new scams under different coin names, retail investors blindly flock to them again. Meanwhile, after extracting huge wealth, the manipulators elegantly pull the plug and run away, leaving behind a mess and regret.
Coin sigh Written by Huajun
Bitcoin thrives in a mesmerizing pool, priced at ninety thousand, startling the breeze.
Three years of ups and downs, tears of profit and loss over the years.
Wealthy merchants flock to seek safety, while common people risk disaster in this venture.
Do not sink your capital into the void; keep your intentions clear and self-disciplined.
