Let's think about a hot topic: can Bitcoin really rise to 1 million dollars?
Looking back at past fluctuations, when Bitcoin broke through 100,000 dollars, many voices began to predict it would rise to a million or even 13 million.
However, when it fell back to 75,000 dollars, many believed it would drop to 50,000 or 60,000. Such changes in market sentiment constantly affect investors.
Market sentiment and investment behavior
In the cryptocurrency market, emotional fluctuations are almost routine. When prices rise, many people chase prices due to fear of missing out (FOMO).
Conversely, when prices fall, fear and uncertainty (FUD) prevent people from adding to their positions. Most people's behavior resembles that of novice investors in the stock market.
Once they sense the market cooling down, they become restless, fearing they did not sell at the peak. And when the market rebounds slightly, they often regret buying too early or too little.
The challenge of long-term holding
Although I believe in Bitcoin's potential, and it could reach a million dollars, the premise is that we must be patient. This process may take ten years or even longer.
Perhaps some people think waiting ten years is no big deal, but the truth is that the holding process is much more difficult than imagined.
Every day there are negative news and market rumors about Bitcoin, with many short videos and self-media platforms filled with clickbait content claiming 'Bitcoin is going to zero.'
Even in the vegetable market, people are excitedly discussing international situations and suggesting selling Bitcoin.
In addition to psychological challenges, the market's extreme volatility is also a huge test of investors' patience.
A sharp drop often makes people question life, facing all this calmly is not as simple as just shouting slogans.
You not only need to have a stable source of income but also ensure that you do not rely on borrowed money for investment.
Under the conditions of gradually improving quality of life, you need to become a qualified person to hold this wealth.
As the wealthy often say, 'money will find its owner,' you must first become that right person.
Bitcoin as digital gold
Many are questioning whether Bitcoin can truly become real currency, but it never aimed to replace the US dollar or the Chinese yuan.
The potential of Bitcoin lies in becoming the stabilizing force of global currency, just like gold did in the gold standard era.
However, Bitcoin has superior characteristics compared to gold - its transaction records are completely open and transparent, and no one can privately increase the supply.
In the future, if any country wants to issue currency, it may need to first put Bitcoin forward as a backing.
This is because historically, the shortage of gold allowed the US to play tricks in international agreements, but with blockchain technology, similar behind-the-scenes operations will be unable to escape scrutiny.
Scarcity and global competition
Currently, the total supply of Bitcoin is 21 million coins, with over 19 million already mined. About 5 million were lost in the early years, and approximately 12 million are locked by long-term holders. The remaining circulating supply is about 2 million coins.
Imagine, with 7 billion people globally, about 500 million already in the market sharing these 12 million Bitcoins, the remaining 6.5 billion potential entrants will compete for these 2 million Bitcoins.
This scenario of supply and demand imbalance has a lot of room for imagination.
A final piece of advice
In the face of this scarcity and global market competition, the way to operate is evident.
As mentioned earlier, the United States is continuously consolidating its control over Bitcoin through political and economic means, forming a cabinet closely related to cryptocurrency, as if holding the key to the future treasury.
It must be said that this bears a striking resemblance to the historical mistake of handing over gold mines.
Watching others act swiftly and reap wealth, shouldn't you reconsider your Bitcoin investment strategy?
A serious statement: readers must strictly comply with local laws and regulations; this article does not represent any investment advice.