I've wanted to write about this topic for a long time because, in my eyes, Bitcoin is just a digital code without any real-world value or meaning.
But it has triggered a new financial model around the world. This is really bizarre and weird. Everyone is involved, and even more and more virtual currencies have been invented. It seems that now as long as you can write a blockchain code, you can create a currency on the market and trade it on an exchange. This is really wicked. If there is such a thing, what else do you want the people to do? Who wouldn't want money that comes from the sky without working?
Trump's issuing of currency is, at best, a realization of power while in office. Without the position of president, could he really use Trump Coin to fleece the public? It's clearly a blatant quid pro quo. Everyone is just closing their eyes and pretending not to see it.
If Trump Coin can still be associated with real-world power, what about Bitcoin? Bitcoin doesn't produce anything, and no one knows who Satoshi Nakamoto is. Mining consumes a lot of electricity without producing any effective output. Yet today, Bitcoin is being traded at 847,670 RMB per coin. Isn't that extremely exaggerated and outrageous? It's essentially a global tulip mania. Everyone knows it's a scam, everyone is participating in it, and everyone is hoping to buy low and sell high.
To talk about Bitcoin, we must talk about the essence of currency. From ancient times to the present, currency has come a long way from seashells to virtual currency, but the basic function of currency has not changed significantly.
Currency has two basic functions: the first is exchange, and the second is storage.
The creation of currency originated from people's need for material exchange. Gold was the earliest hard currency used for exchanging goods. But beyond exchange, currency quickly developed the function of storage, just as people need lakes and ponds in addition to rivers. The function of rivers is to flow, bringing fresh water into the Earth's great cycle. The earliest places where people got water were rivers and wells. Wherever there were wells, markets naturally formed. People exchanged information, gossiped, gathered, and traded while drawing water. Without rivers, there would be no human civilization.
The function of lakes and ponds is to store water. Among nomadic peoples, people lived near water and grass. After people entered the agricultural era, they began to intercept water sources for protection against drought and flooding. Because of reservoir lakes, even if there was heavy rain, the water level could be adjusted to prevent flooding of farmland. And in dry seasons, the sluice gates could be opened to prevent crop failure due to drought.
Therefore, currency simultaneously has these two functions of circulation and storage. And when a place can achieve self-sufficiency by storing water in lakes, they no longer rely on rainfall and can complete all agricultural activities by using groundwater and stored water.
This also applies to currency. When a person has accumulated enough money through savings, they no longer need to work and can even earn a fixed income by releasing some of their stored wealth to others.
Therefore, you will find that people are always looking for the best monetary token between circulation and storage.
Liquid assets are cash, but cash will be devalued by inflation, just as rivers naturally evaporate. Therefore, people have thought of using high-net-worth items to replace the currency itself. But tokens have a drawback: the higher the net worth, the slower the circulation. Liquidity and stillness are naturally contradictory.
Therefore, antiques, calligraphy, paintings, jewelry, gold, real estate, luxury cars, bags, securities, stocks, options, and government bonds have all been used as stores of value.
Here, what the token itself is is no longer important. It's just a symbol. What's important is whether it can be accepted by enough people, and whether a market for circulation and trade emerges. Without a market, the dual value of storage and circulation cannot be achieved.
So as long as you can weave a good story and give it enough value, you can successfully create a market and make a fortune by attracting more and more people to invest in it.
Therefore, Bitcoin is a product that has emerged in such an environment. The inherent attributes of virtual currency allow people to see it as equivalent to currency. Its uselessness has become its greatest use. People don't need to choose it because they like it. They also don't need to worry about whether it's a worthwhile product to invest in.
Because Bitcoin is just a symbol. Its value is money. Like a small treasure house. You can buy or sell it at any time, and a transaction can be completed in one trading day, which is much faster than the cycle for real estate, government bonds, stocks, and jewelry auctions.
Instant access to money that can be converted into cash, isn't this the perfect product with the four advantages of preservation of value, appreciation, circulation, and instant buying and selling?
Therefore, in the eyes of many people, this is the best investment method, and what they are watching is how many people participate in the investment. The more money in the pool, the more they can get out. All they need to do is use a portion of the funds to maintain the illusion that Bitcoin is always rising, and they can continuously arbitrage, replacing the money they invested earlier with the money pushed up by later investors.
As long as the bubble doesn't burst and the lie isn't exposed, they can use Bitcoin as a blood transfusion machine, drawing blood continuously.
And this blood bank is a large turntable maintained by people all over the world, no different from gold trading, futures trading, and global NASDAQ stock trading.
It's a pure capital pool, except that the content of speculation has gradually shifted from land, commodities, company ownership, and national debt (things backed by sovereign credit) to completely unsubstantiated castles in the air. People's confidence is like the oxygen tube inserted into an ICU patient. Once confidence falters and the first domino falls, the collapse of the edifice is inevitable. Then, there will be a worldwide financial storm.
This world-class financial storm will sweep through a series of financial markets, starting with Bitcoin. It will be more terrible than the financial storm of 2008.
Starting with Bitcoin, it will roll through stocks, futures, bonds, and real estate - all financial instruments - in order of ease of circulation along the supply chain.
And this disaster is there, waiting for the final moment to arrive, bringing a devastating blow to the world.
Perhaps people want to see the magnitude 9 earthquake and tsunami that occurred on Sakura Island, but I tell you, this tsunami will occur worldwide, bringing about the collapse and reorganization of the entire world.
Do you believe it? Isn't it exciting?
You may think I'm alarmist and exaggerating. I don't have an economics degree, so how can I predict such a big event?
But I tell you, such a speculative market cannot possibly avoid collapsing. The Japanese financial storm of 1987 brought 20 years of economic decline. The financial crisis of 2008 brought about the outbreak of the American subprime mortgage crisis, and the collapse of similar Ponzi schemes staged in various historical periods around the world all warn people of the ultimate outcome. Therefore, this event is bound to happen.
The only difference is when it will erupt.
So why do I predict that it will erupt soon?
Because such a capital pool is like a vortex, it must have an eye, continuously generating a clockwise cycle, meaning that everyone is constantly investing and operating in one direction.
And once no one continues to put money in, it's like a fire burning to its peak, and no one is adding firewood.
Then this fire will burn the last leg of its journey at the greatest speed, crackling and popping, and then begin to go out.
Therefore, this critical point is when people start withdrawing funds from it. When the outflow of funds is greater than the inflow, a financial collapse will begin, and everyone will panic and stampede, scrambling to leave, causing countless casualties.
So why is it certain that someone will withdraw funds? And not everyone will withdraw funds at the same time, right?
Well, that's the most exciting part.
First, the purpose of these people creating this capital pool is to harvest, so it's impossible to keep the funds in it forever. Sooner or later, they will withdraw them at a high point. And the news I just saw, someone is preparing to withdraw the money from the 80,000 Bitcoin wallets that have been dormant for more than a decade. This is a signal that the owner of the wallet is preparing to cash out.
Second, others will also withdraw the money stored in Bitcoin if they have real-world needs. For example, real-world companies need money due to poor management and need to sell assets, etc. Wang Jianlin has already sold off 52 billion worth of assets and is still paying off debts. Doesn't this illustrate the fact that everyone's funding needs are dire now?
Third, everyone is seeing more and more various volcanic eruptions, earthquakes, flash floods, and rainstorm information every day. In the past, there were only blue rainstorm alerts. Now Beijing has a red flood alert. Doesn't this explain the problem?
With the rampant devastation of various disasters on the ground, it will inevitably trigger a large amount of economic loss. In order to reduce losses and rebuild after disasters, people will inevitably withdraw virtual funds and return to reality. Although those who suffer losses may not be people who speculate in Bitcoin, these global capital flow reversals are all drawing money from the savings pool outward. This is the meaning of saving, which lies not only in saving, but also in reverse flow.
Therefore, when capital pools around the world are discharging floods outward for various reasons, what is truly driving it is not just the funds themselves, but also the confidence of the people with the funds. Once a gap of distrust begins to appear in people's confidence...
This greed, which has been amplified to an unimaginable degree, will inevitably reap its own consequences and instantly meet its burial ground.
They will watch helplessly as a small opening leaks water, and two small openings leak water, thus causing a collapse of various financial markets starting with Bitcoin, and then flash floods will begin to occur. All the financial markets in the world will begin to convulse, and the traffic lights will flash non-stop, like a patient with an acute stroke.
When war, financial risk, earth disasters, and people's poverty are all squeezed together, it will eventually squeeze out a black hole and explode with the brightness of a supernova.
I think this is the end result of the entire world's financial reset. A scene of devastation, with everyone receiving the baptism of the Titanic in the final financial tsunami.
Let's wait and see, and wait for this unexpected ending!
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