Friends in the crypto world, today let's talk about the underlying logic and investment insights of Bitcoin. These are practical tips, so save them if you find them useful.
Why do I have faith in Bitcoin? Simply put, it’s like a mirror that reflects the problems of fiat currency. Since fiat currency stopped being linked to gold, countries have just kept printing money. When too much money is printed, it loses value, and the hard-earned money of ordinary people gradually shrinks. Bitcoin is different; there will only ever be 21 million coins, and there won't be any more printed. The less valuable fiat currency becomes, the more valuable Bitcoin could potentially become.
Moreover, Bitcoin has been around for over a decade. Throughout this time, people have often said it would fail, yet the price has consistently reached new heights. Now, not only ordinary people but also some countries and large institutions have started buying it. The claim that it will go to zero is basically impossible.
There’s one more thing that needs to be clarified: Bitcoin has never truly trapped anyone. Each peak in a bull market has been higher than the last, and as long as you hold it long enough, you will basically end up making a profit. Those altcoins may seem to surge in the short term but can also plummet hard; Bitcoin is much more stable, like a ballast on a ship.
However, retail investors often make some mistakes in the crypto world. They panic when prices drop and rush to chase when they rise. They buy only altcoins and look down on Bitcoin, obsessively watching various news: big funds are transferring coins, ETF fund changes… the more they watch, the more confused they become.
These are all traps! To make money in the crypto world, mindset is more important than anything else. Here are a few suggestions:
Don’t let news lead you astray. Many messages are intentionally released by institutions to trap people; believing them can lead to losses.
Positioning must be done correctly. No matter how much money you have, at least over half should be in Bitcoin. The more money you have, the higher the proportion of Bitcoin should be. Bitcoin has the highest recognition and stability in price; altcoins may earn more in the short term, but they carry more risk in the long term and are hard to hold onto.
Finally, let me say this: cryptocurrencies can help us combat the problem of money becoming less valuable. You don’t need to understand overly complex technology; just maintain a steady mindset and persist, and you might achieve financial freedom.