Bitcoin has created an entirely new world. In this world, there is only one standard—Bitcoin.
When an economy is backed by gold, we can say it operates under the gold standard. Similarly, when an economy is backed by Bitcoin, we say it operates under the coin standard.
Currently, there is no such economy, but I believe there will be in the future. We cannot change others yet, but we can start by changing ourselves.
For example, if we take Bitcoin as the reference frame, the dollar trend we see is like this (Figure 1).
Figure 1. Dollar price relative to Bitcoin (unit: 1 Satoshi = 0.00000001 Bitcoin)
It is evident that the dollar is a zeroing currency. The dollar has fallen from 2 billion Satoshis in 2010 to now 10,000 Satoshis, and it will continue to fall, possibly down to 10 or even 1 Satoshi. Of course, looking at the world from the Bitcoin standard, most assets exhibit similar trends: continuous depreciation, continuous depreciation. Moreover, they also fluctuate violently.
It's like sitting on a rocket watching the ground. Everything is shaking, everything is getting smaller, continuously getting smaller, until it disappears.
You might have never thought about how simply changing a reference frame can bring about such changes. But in any case, as a pioneer, you need to start adapting to these changes.
First of all, many concepts have really changed.
For example, dollar-cost averaging in Bitcoin shouldn't be called dollar-cost averaging but rather fixed savings. Hoarding Bitcoin is no longer an investment but a form of saving.
Holding RMB is equivalent to holding foreign currency. I come from Bitcoin Country and 'immigrated' to China, so I need to accept RMB for my salary and will also keep some RMB for living expenses. I won't foolishly demand merchants accept my local currency (Bitcoin) for payment; instead, I will actively exchange currency and use RMB for payments.
At this point, you can understand how foolish those who demand to buy coffee with Bitcoin are. Want to buy coffee? You wouldn't switch to pay in RMB, would you?
If you are investing, only earning Bitcoin counts as real profit; otherwise, it's a loss. The vast majority of people are surely at a loss, no doubt about it. But we are definitely at a profit, no need to doubt.
Oh, by the way, there is one very, very important thing. In our world, there is no concept of inflation tax; you will never have to pay it again.
Secondly, consumption will become more rational.
Once upon a time, my spending was actually somewhat excessive. For example, whenever I had a little spare money, I would invite people out for meals. Whether we wanted to or not, the depreciating currency continued to distort our consumption perspectives, after all, holding cash is a loss.
Later, I entered the coin-based economy, and everything changed. At that time, each meal cost about 1 Bitcoin. You must know this is one twenty-one millionth of the total Bitcoin supply; casually spending it on a meal is truly a pity.
So, I started to intentionally take on a lot of work, making myself particularly busy, and when I encountered dinner parties, I had to decline. No one would mind if you canceled dinner parties because of being busy with work.
This decision is very wise. The Bitcoin purchased with the money saved from meals during that time should be enough to treat others to meals for a lifetime. After all, prices have dropped quite fast in recent years, and now a meal only requires 0.0X Bitcoin.
In fact, 0.0X Bitcoin is still quite expensive, and prices will continue to fall in the future. However, there is a marginal effect. If 0.0X Bitcoin has become negligible relative to the total holdings, then spending it feels just like spending it, with no significant feeling, even knowing that this meal is equivalent to consuming hundreds of future meals.
Those who take it for granted that the continuous appreciation of Bitcoin will curb consumption have never held Bitcoin. Back in the day, some people even used 10,000 Bitcoins to buy pizza. No one will starve themselves while hoarding Bitcoin.
Consumption has simply become more rational. Because we have to carefully weigh each consumption, considering whether trading future purchasing power by exchanging it for a current item or service is really worth it.
Again, stay away from pyramid scheme thinking.
Every bull market, a new batch of pseudo-Bitcoin enthusiasts emerges in the Bitcoin community. They share a common trait: they promote Bitcoin to everyone, relate any topic to Bitcoin, and tirelessly persuade others to buy and use Bitcoin.
They will think they have contributed greatly to Bitcoin; they will believe they are not engaging in a pyramid scheme, but their actions are exactly like a pyramid scheme. They might not even realize that the negative reputation of Bitcoin is largely related to them.
Of course, these people usually don't last long. Once the price drops, the better ones might leave, disappearing without a trace. The worse ones may even embark on the irreversible path of black Bitcoin. Hence, I call them pseudo-Bitcoin enthusiasts.
Once you use the Bitcoin standard, you will no longer strive to 'recruit others.' Because, no matter how many people you bring in, your 1 Bitcoin is still equal to 1 Bitcoin.
Not only is there no profit to speak of, but you also need to pay attention to the risks that 'recruiting others' may bring to others. Can the other party withstand the jolts of the rocket? You think you are helping them, but you might actually be harming them, because they may be weak and could die suddenly on the rocket.
The more you strive to 'recruit others,' the more you expose your fundamental lack of confidence in Bitcoin; deep down, you still believe in fiat currency, because 'recruiting others' can only earn fiat currency, not Bitcoin.
So, please remember, Bitcoin does not require recruiting others; properly safeguarding your own coins is the real business.
You might say, since Bitcoin is so good, why can't I tell my friends and family? If they are friends and family, then just buy them a few coins directly. You bear the risk, and the profits go to them. If you can't do that, it means your relationship isn't that close.
Finally, cultivate a wealth mentality.
There is a book called 'Scarcity' that centers on the idea that people in scarcity have their mental capacity and cognitive abilities greatly limited, leading to habitual responses to scarcity.
In simple terms, poverty is actually a mindset; a poverty mentality can make people foolish and, of course, make them poorer.
Many people are deeply trapped in gambling and cannot extricate themselves. They know gambling is wrong, yet they still sink deeper into it due to a long-standing poverty mentality, longing for victory that remains elusive, leading to lowered intelligence.
A full investment strategy is also a typical poor mentality; after going all in, you will become foolish.
Next, let's discuss the issue of hoarding coins with 30% of funds again.
If based on fiat currency, whether using a full investment strategy or a 30% funding strategy for hoarding coins, the difference for financial freedom is just one cycle earlier (4 years). This is important, after all, it speeds up financial freedom. But the cost is that you will become foolish. And foolish people usually exit early; I have never seen anyone who hoarded coins with a full investment strategy still holding them now.
However, if we switch to a Bitcoin-based perspective, our feelings will be completely different. A full investment strategy and a 30% funding strategy for hoarding coins are akin to the difference between 10 coins and 3 coins; this is unrelated to time. 1 billion Satoshis is always 1 billion Satoshis, and 300 million Satoshis is always 300 million Satoshis.
If you already have 300 million, adding another 700 million won't bring you much happiness. How wealthy is holding 1 Bitcoin? You can already rank in the top one-hundred-thousandth in the world.
Figure 2. Distribution of Bitcoin address balances (data source: bitinfocharts.com)
Figure 2 shows that there are only about 700,000 addresses holding over 1 Bitcoin, amid a global population of over 7 billion. Holding 1 Bitcoin places you in the top one-hundred-thousandth globally. Holding 0.1 Bitcoin can place you in the top one-thousandth. (Note: Excluding exchange addresses, people who keep coins on exchanges have never truly owned Bitcoin; even if they don't lose it, they will sell it.)
We need to cultivate our wealth mentality as early as possible, putting value creation and self-realization first, as money may not be in short supply in the future. Time and energy are our most valuable resources.
With a wealth mentality, you definitely won't bother with those you disdain, and you won't argue with anyone, because you only want to focus on your own growth.
In summary, as pioneers, we must gradually get used to measuring the world in Bitcoin. From now on, it's like riding a rocket, gaining a god's perspective, and we will experience beauties that were previously unimaginable.
Bitcoin has created an entirely new world. In this world, there is only one standard—Bitcoin.
When an economy is backed by gold, we can say it operates under the gold standard. Similarly, when an economy is backed by Bitcoin, we say it operates under the coin standard.
Currently, there is no such economy, but I believe there will be in the future. We cannot change others yet, but we can start by changing ourselves.
For example, if we take Bitcoin as the reference frame, the dollar trend we see is like this (Figure 1).
Figure 1. Dollar price relative to Bitcoin (unit: 1 Satoshi = 0.00000001 Bitcoin)
It is evident that the dollar is a zeroing currency. The dollar has fallen from 2 billion Satoshis in 2010 to now 10,000 Satoshis, and it will continue to fall, possibly down to 10 or even 1 Satoshi. Of course, looking at the world from the Bitcoin standard, most assets exhibit similar trends: continuous depreciation, continuous depreciation. Moreover, they also fluctuate violently.
It's like sitting on a rocket watching the ground. Everything is shaking, everything is getting smaller, continuously getting smaller, until it disappears.
You might have never thought about how simply changing a reference frame can bring about such changes. But in any case, as a pioneer, you need to start adapting to these changes.
First of all, many concepts have really changed.
For example, dollar-cost averaging in Bitcoin shouldn't be called dollar-cost averaging but rather fixed savings. Hoarding Bitcoin is no longer an investment but a form of saving.
Holding RMB is equivalent to holding foreign currency. I come from Bitcoin Country and 'immigrated' to China, so I need to accept RMB for my salary and will also keep some RMB for living expenses. I won't foolishly demand merchants accept my local currency (Bitcoin) for payment; instead, I will actively exchange currency and use RMB for payments.
At this point, you can understand how foolish those who demand to buy coffee with Bitcoin are. Want to buy coffee? You wouldn't switch to pay in RMB, would you?
If you are investing, only earning Bitcoin counts as real profit; otherwise, it's a loss. The vast majority of people are surely at a loss, no doubt about it. But we are definitely at a profit, no need to doubt.
Oh, by the way, there is one very, very important thing. In our world, there is no concept of inflation tax; you will never have to pay it again.
Secondly, consumption will become more rational.
Once upon a time, my spending was actually somewhat excessive. For example, whenever I had a little spare money, I would invite people out for meals. Whether we wanted to or not, the depreciating currency continued to distort our consumption perspectives, after all, holding cash is a loss.
Later, I entered the coin-based economy, and everything changed. At that time, each meal cost about 1 Bitcoin. You must know this is one twenty-one millionth of the total Bitcoin supply; casually spending it on a meal is truly a pity.
So, I started to intentionally take on a lot of work, making myself particularly busy, and when I encountered dinner parties, I had to decline. No one would mind if you canceled dinner parties because of being busy with work.
This decision is very wise. The Bitcoin purchased with the money saved from meals during that time should be enough to treat others to meals for a lifetime. After all, prices have dropped quite fast in recent years, and now a meal only requires 0.0X Bitcoin.
In fact, 0.0X Bitcoin is still quite expensive, and prices will continue to fall in the future. However, there is a marginal effect. If 0.0X Bitcoin has become negligible relative to the total holdings, then spending it feels just like spending it, with no significant feeling, even knowing that this meal is equivalent to consuming hundreds of future meals.
Those who take it for granted that the continuous appreciation of Bitcoin will curb consumption have never held Bitcoin. Back in the day, some people even used 10,000 Bitcoins to buy pizza. No one will starve themselves while hoarding Bitcoin.
Consumption has simply become more rational. Because we have to carefully weigh each consumption, considering whether trading future purchasing power by exchanging it for a current item or service is really worth it.
Again, stay away from pyramid scheme thinking.
Every bull market, a new batch of pseudo-Bitcoin enthusiasts emerges in the Bitcoin community. They share a common trait: they promote Bitcoin to everyone, relate any topic to Bitcoin, and tirelessly persuade others to buy and use Bitcoin.
They will think they have contributed greatly to Bitcoin; they will believe they are not engaging in a pyramid scheme, but their actions are exactly like a pyramid scheme. They might not even realize that the negative reputation of Bitcoin is largely related to them.
Of course, these people usually don't last long. Once the price drops, the better ones might leave, disappearing without a trace. The worse ones may even embark on the irreversible path of black Bitcoin. Hence, I call them pseudo-Bitcoin enthusiasts.
Once you use the Bitcoin standard, you will no longer strive to 'recruit others.' Because, no matter how many people you bring in, your 1 Bitcoin is still equal to 1 Bitcoin.
Not only is there no profit to speak of, but you also need to pay attention to the risks that 'recruiting others' may bring to others. Can the other party withstand the jolts of the rocket? You think you are helping them, but you might actually be harming them, because they may be weak and could die suddenly on the rocket.
The more you strive to 'recruit others,' the more you expose your fundamental lack of confidence in Bitcoin; deep down, you still believe in fiat currency, because 'recruiting others' can only earn fiat currency, not Bitcoin.
So, please remember, Bitcoin does not require recruiting others; properly safeguarding your own coins is the real business.
You might say, since Bitcoin is so good, why can't I tell my friends and family? If they are friends and family, then just buy them a few coins directly. You bear the risk, and the profits go to them. If you can't do that, it means your relationship isn't that close.
Finally, cultivate a wealth mentality.
There is a book called 'Scarcity' that centers on the idea that people in scarcity have their mental capacity and cognitive abilities greatly limited, leading to habitual responses to scarcity.
In simple terms, poverty is actually a mindset; a poverty mentality can make people foolish and, of course, make them poorer.
Many people are deeply trapped in gambling and cannot extricate themselves. They know gambling is wrong, yet they still sink deeper into it due to a long-standing poverty mentality, longing for victory that remains elusive, leading to lowered intelligence.
A full investment strategy is also a typical poor mentality; after going all in, you will become foolish.
Next, let's discuss the issue of hoarding coins with 30% of funds again.
If based on fiat currency, whether using a full investment strategy or a 30% funding strategy for hoarding coins, the difference for financial freedom is just one cycle earlier (4 years). This is important, after all, it speeds up financial freedom. But the cost is that you will become foolish. And foolish people usually exit early; I have never seen anyone who hoarded coins with a full investment strategy still holding them now.
However, if we switch to a Bitcoin-based perspective, our feelings will be completely different. A full investment strategy and a 30% funding strategy for hoarding coins are akin to the difference between 10 coins and 3 coins; this is unrelated to time. 1 billion Satoshis is always 1 billion Satoshis, and 300 million Satoshis is always 300 million Satoshis.
If you already have 300 million, adding another 700 million won't bring you much happiness. How wealthy is holding 1 Bitcoin? You can already rank in the top one-hundred-thousandth in the world.
Figure 2. Distribution of Bitcoin address balances (data source: bitinfocharts.com)
Figure 2 shows that there are only about 700,000 addresses holding over 1 Bitcoin, amid a global population of over 7 billion. Holding 1 Bitcoin places you in the top one-hundred-thousandth globally. Holding 0.1 Bitcoin can place you in the top one-thousandth. (Note: Excluding exchange addresses, people who keep coins on exchanges have never truly owned Bitcoin; even if they don't lose it, they will sell it.)
We need to cultivate our wealth mentality as early as possible, putting value creation and self-realization first, as money may not be in short supply in the future. Time and energy are our most valuable resources.
With a wealth mentality, you definitely won't bother with those you disdain, and you won't argue with anyone, because you only want to focus on your own growth.
In summary, as pioneers, we must gradually get used to measuring the world in Bitcoin. From now on, it's like riding a rocket, gaining a god's perspective, and we will experience beauties that were previously unimaginable.