I believe that any project with long-term investment value should have at least five characteristics:
1. The market is large enough and the ceiling is high enough:
For those who sell white wine and red wine, of these two products, the market for red wine is definitely larger and has a wider scope;
For those who sell mobile phones and computers, of these two products, the market for mobile phones must be larger;
Once the market is big enough, it depends on how much proportion of the cake you occupy, that is, the degree of monopoly you achieve.
2. In line with human nature:
Human nature is to move towards "wine, sex, wealth and luck", wine (intoxicating drugs, drugs, etc.), sex (nightclubs, entertainment venues, etc.), wealth (drug clubs, securities markets, etc.), and luck (luxury goods, face-earning products). What is human nature? Human nature is: to get rich overnight, to get something for nothing, to get something for nothing, to make quick money.
Three: It is applicable to a large number of people:
What kind of project is applicable to a large number of people? It must be "food, clothing, housing, transportation, food, drink, entertainment", which everyone cannot do without and everyone needs to consume;
Four: Scarce resources:
This is easy to understand. For example, oil, gold, and beautiful women are all scarce resources. There is another kind of scarce resource that many people don’t think of, that is, the scarce resources prohibited by laws:
Las Vegas in the United States and Macau in China are all scarce resource dividends brought about by national prohibition;
Of course, the cryptocurrency world is an area that cannot be governed by laws and regulations, and it is a scarce resource.
5. Sustainable profitability:
Sustainable profitability is based on two aspects: the life of the product itself and the maturity of the user population.
Some products have a lifespan:
For example, fuel vehicles will inevitably be eliminated because oil resources are non-renewable and cannot continue to make profits;
Even for electric cars, charging consumes energy and is not sustainable and profitable. Electric cars are just a transitional product that is more environmentally friendly than fuel cars.
Hydrogen-powered vehicles are sustainable and profitable. Hydrogen is produced by electrolyzing water, and water resources are relatively unlimited.
Some products have strong sustained profitability because of their strong usage cost-effectiveness:
For example, coffee, alcohol, and even drugs;
The securities market itself also has strong profitability or leverage;
In summary, when we judge whether a project is worth long-term investment, we may refer to the above five aspects as a basis. Don’t blindly follow the trend, don’t be led by the market makers, don’t think that you must be the luckiest leek, don’t think that you will never be the fool who is harvested! Don’t speculate with a fluke mentality!
The current social environment is becoming increasingly uncertain, but no matter how it develops and changes, its underlying rules will not change. All future competition is actually a competition to seize the "cognitive high ground."
Brothers who read this article carefully, we can chat together, share experiences, study the knowledge of blockchain, and find out where the coins that will increase hundreds or thousands of times in the future are. I hope we can witness and grow together.