Remember, when people in your circle start flaunting wealth, it's time to exit.
In every cycle, there are moments of flaunting wealth.
It's not just on-chain data that they flaunt, nor just wallet screenshots; more importantly, it's the display of wealth in the real world.
Some were still unknown a year ago, but now they walk into watch stores and spend cash to buy luxury watches, even posting wrist photos online.
What seems trivial at this moment marks an important shift in market psychology.
Let’s start analyzing this phenomenon from the most basic level.
Why watches?
This principle is simple: Rolex belongs to Veblen goods. (Note: Veblen goods are luxury items for which demand increases as the price rises, seemingly contrary to the law of demand.)
The more expensive the goods, the more people want to buy them.
They do not demonstrate value through functionality, but through price.
People buy goods not for their practicality, but for the status they represent.
Once the nouveau riche become wealthy, the first thing they want is for the whole world to know about their wealth.
They do not buy land or government bonds.
They purchase symbols of wealth, such as watches, luxury cars, and sometimes NFTs.
But everything is not as simple as it first seems.
