Why are most people in the cryptocurrency market destined to lose money?

We use a proof by contradiction. If most people in the cryptocurrency market are making money and only a few are losing, what would that scenario look like?

The market is a place for transactions; it does not generate profits on its own. If you hold Bitcoin for a long time, the Bitcoin you hold does not produce any profit.

The so-called making money from trading cryptocurrencies occurs in the process where you buy and I sell. It is merely a process where one part of the traders earns money from another part of the traders; it is a transfer of funds. To put it simply, if you can make money, it means someone else has bought your position at a high price, so for you to earn, someone else must lose.

Assuming there are ten participants in the cryptocurrency market, each with 10 dollars. If only a few people are making money, one person earns 2 dollars from the other nine, that person now has 28 dollars, and the other nine have 8 dollars each; the game can continue. If most people are making money, nine people earn 2 dollars from one person, leaving the nine with 11 dollars each, while the one person not only loses everything but also owes 8 dollars, making it impossible to continue the game.

When a few people make money, the market can be sustainable; when most people make money, the market collapses. It is similar to a lottery; if most people win, the lottery company cannot continue operating. Only when the majority loses and a few win can the lottery company sustain its business.

Therefore, the cryptocurrency market will use every means to allow a few people to make money while the majority loses money.

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