The myth of getting rich quickly in the crypto space is rampant, but the harsh reality is: the vast majority of participants not only haven't made money but have instead lost everything. Why?
My core insight may be counterintuitive: The core value of the crypto space is not 'making money', but capturing 'getting rich' level opportunities. Understanding this makes it easier for you to survive and succeed in the crypto space.
See the reality clearly: The efficiency of 'making money' in the crypto space is far inferior to that of the US stock market!
In the past few years, 99% of cryptocurrencies have not outperformed leading US stocks like Tesla.
Coinbase's stock has increased tenfold, easily outperforming Bitcoin during the same period.
Simply pursuing 'making money'? The US stock market is a more mature and efficient choice.
Is it still worth playing in the crypto space? Answer: Yes, but only for 'getting rich'!
The crypto space provides opportunities that the US stock market finds hard to replicate: seizing a few paradigm shifts to achieve a leap in wealth class.
Such opportunities are extremely rare and cannot be sought. Spending all day in the crypto space often leads to futile efforts or even losses.
Strategy: Be patient and fully capture those few 'paradigm shifts' that change the rules of the game.
Reviewing history: Paradigm shift = Wealth nuclear explosion point.
2016-2017: Centralized -> POW + ICO. Participating in early ICOs, hundredfold or thousandfold returns are not a dream.
2020-2021: POW -> POS + DeFi/Metaverse. Infrastructure upgrades ignited ecological applications, resulting in hundredfold projects.
2022-Present (Has not happened): L2, modularization... Essentially a technical optimization of the previous round (scalability, performance), lacking disruptive innovation, hence no super bull market.
Looking to the future: Two inevitable paradigm shifts (the secret to getting rich is here).
RWA + Metaverse:
Driving force: Under the immense debt pressure in the US, RWA (tokenization of real-world assets) becomes a 'lifesaving' choice while providing an economic anchor for the metaverse.
Endgame imagination: 'Combining virtual and real' and 'integrating blockchain and stocks' is the inevitable direction of technological development. RWA connects the real and virtual economies, and the metaverse offers vast application scenarios, with enormous potential.
L1(POW) + L2(POS) architecture consensus (the rise of Bitcoin's second layer):
Driving force: The SEC's latest regulatory signals (staking = network activity, re-staking ≈ securities) have severely hit the ETH modularization route (which relies on re-staking to ensure L2 security). ETH faces numerous obstacles in the future.
Opportunity window: Bitcoin's second layer (such as Stacks, Rootstock, etc.) is facing a historic opportunity! Utilizing Bitcoin's native security (POW L1), building high-performance POS L2 on top of it, forming a new paradigm of 'L1(POW) + L2(POS)'. Security is guaranteed by Bitcoin, performance is solved by L2, and the imagination space is wide open.
Rules for survival in the crypto space: Either a hundredfold return or just watch.
In this high-risk market, if a project does not have a potential imagination space of over 100 times, its risk-reward ratio is far inferior to investing in quality stocks.
The only reasonable reason to participate in the crypto space: All-in on those opportunities that may bring class leaps, driven by paradigm shifts for 'getting rich'. Otherwise, it's better to stay away.
